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Gujarat: Dairy loan query turns sour in House

Cong says Porbandar Dist co-op gave Rs 12cr to private company in violation of rules, BJP denies it

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A loan given by the Porbandar District Co-operative Milk Producers Union of Rs 12 crore given to a private company became a point of heated debate between the Congress and the ruling BJP over corruption in the co-operatives in Gujarat.

Chirag Kalariya, the Congress MLA from Jamjodhpur had in a question sought to know whether the Porbandar District Co-op had given Rs 12 crore to a private company - Kamdhenu Enterprise and whether any action was taken against those responsible for the largesse.

Congress MLA Punja Vansh also said that the private company was given the job of processing the milk when in fact it was the Porbandar Co-operative that had to set up the unit and not outsource it.

"Moreover to set up such a processing unit, the co-operative had to seek nod from GCMMF but that too did not happen. The Porbandar Co-operative not just gave the company Rs12 crore but also acted as a guarantor of the Rs 24 crore loan that it took to set up the entire processing unit," Vansh claimed in a talk with DNA.

He also had a heated exchange with members of the ruling bench during the session in this connection.

Minister of State (C0-operation) Ishwar Patel clarified that since the Rs 12 crore was an advance given to the company they did not need any nod from anyone. "Moreover, the company also paid an interest of Rs 1.6 crore on the said amount despite there being no such agreement to pay interest. He said so the question of taking action does not arise," Patel said.

Vansh said that both the Rs 12 crore and the Rs 24 crore guarantee extended to the company were nothing but a front for corruption. "With the private company being given the contract for processing milk, what the farmers will get for their produce will come down because now there is a middleman who is processing the milk and not the co-operative of which the farmers are the members," said Vansh.

When BJP MLA Jetha Bharwad jumped into answer the allegations, GPCC chief CJ Chavda also commented that if needed one can prove how water finds its way in the milk produced at Panchmahals Dairy. Bharwad represents a seat in Panchmahals. Soon several BJP MLAs opposed Chavda's comment with Deputy Chief minister Nitin Patel stating that several MLAs from both the Congress and BJP were associated with the co-operative movement and it is unfair to level personal allegations.

Patel also could not help a parting shot at the Congress reminding the party that no one has ever brought up what all went in Gandhinagar Dairy when the party was in power there.

Lowdown

Chirag Kalariya, the Congress MLA from Jamjodhpur had in a question sought to know whether the Porbandar District Co-op had given Rs 12 crore to a private company - Kamdhenu Enterprise and whether any action was taken against those responsible for the largesse

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