Gujarat High Court on Friday stayed the proceedings of Gujarat Co-operative Milk Marketing Federation (GCMMF) board meeting called to discuss the no trust motion against the chairman Vipul Chaudhary.
The meeting which was called by GCMMF board of directors on Saturday to decide the future course on whether Chaudhary can play the role of the chairman, has now got cancelled.
“We filed a fresh matter before the High Court as there are no provisions in co-operative law that allows no trust motion. During the hearing, court stayed the proceedings of the scheduled meeting. Further hearing will be on November 11 and stay will continue till the hearing takes place,” said Vikramsinh Vaghela, Chaudhary’s legal counsel.
The board meeting was originally scheduled to oust Chaudhary as the chairman of the federation on charges of financial irregularities worth Rs1,864 crore in Mehsana milk union. He is also the chairman of Mehsana District Co-operative Milk Producers’ Union Ltd.
On Thursday, 15 members of the 17-member board of GCMMF signed and moved a no-confidence motion against Chaudhary. Other than Chaudhary and Ramsinh Parmar of Anand milk union, all other board members have raised their voice against the chairman. It is also believed that Parmar helped Chaudhary in taking the legal course.
The alleged irregularities include debt of Rs1,357 crore in Mehsana’s Dudhsagar Dairy along with fall in productivity of milk. GCCMMF board members claimed that with such a huge debt and fall in milk production, there is huge possibility that Mehsana milk union might become a sick unit.
One of the board members said there are high chances that even board members of Mehsana milk union might move a no-confidence motion against Chaudhary.