In one of the many controversial decisions taken by the YSRCP government in Andhra Pradesh, the takeover of the Sangam Dairy is alleged to be a blatant misuse of power. The ruling party is alleged to have misled people by not stating the facts of the case and diverting it by alleging cases of diversion of profits of Sangam Dairy into pockets of TDP Ex-MLA and Sangam Dairy Chairman Dhulipalla Narendra.
In 1977, Dhulipalla Family started the Guntur District Milk Producers Cooperative Union Limited (GDMPCUL). In 1978, according to the G.O.no.515, the government transferred the management of feeder balancing Dairy named Sangam Dairy at Sangam, Jagarlamudi to GDMPCUL. In 1992, Dhulipalla Narendra was elected as the chairman of GDMPCUL.
Later, Dhulipalla Narendra, in memory of his late father and founder of GDMPCUL, formed a trust named Sri Dhulipalla Veeraiah Chowdary Memorable Trust (SDVCMT) in 1994. The intention of the Trust was to support cattle breeders in the region and help them by setting up educational institutions, hospitals, and other important facilities. In a resolution passed by the GDMPCUL board in 1994, land to the extent of 10 acres was transferred to SDVCMT. In the land allocated, the DVC hospital and research center was established on par with the corporate hospitals to serve the milk producers of the region free of cost.
The takeover of Sangam Dairy by the government does not have any connection with the current case by the ACB. Using the ACB case is an opportunity to accomplish a long-standing dream of moving the Sangam dairy from the reigns of Dhulipalla family. Jagan Mohan Reddy’s father YSR too attempted, but failed, to take over the Sangam dairy in the past.
Further, Sangam dairy was converted into a Producer company in 2011 and comes under the purview of the Registrar of Companies, under the Union Ministry of Corporate Affairs. The misappropriation or any diversions should ideally be dealt with by the Registrar of companies and not the government of Andhra Pradesh, and the release of G.O.No 19 is beyond the purview of the state. Over-reaching its authority, the ACB alleges that the land has been wrongfully transferred to the Trust without any clearance from the government, whereas the Sangam dairy claims that the dairy has already cleared the dues of the government through dairy’s money and the arrest of its chairman is unconstitutional.
Keeping this aside after the arrest of Dhulipalla Narendra, the ruling YSRCP leaders have clearly catapulted the facts by stating that Dhulipalla Narendra was arrested for diverting the profits of Sangam dairy into his own pockets. As mentioned, if there was any such misappropriation as alleged by the ruling party leaders, that should only go through ROC under MCA but not the government of Andhra Pradesh. This exposes the gross abuse of power by the government to forward their vested interests.