The Hindu Business Line : Takeover of Visakha Dairy draws flak

THE takeover of the management of Visakha Dairy and seven other co-operative dairies in the State by the Government through an Ordinance has been criticised by different political parties and organisations.

The ordinance was issued on Saturday night and the dairies were taken over on Sunday. The Visakhapatnam district collector, Mr Anil Singhal, assumed charge of the Visakha Dairy on Sunday as a special officer.

Visakha Dairy, under the control of a Telugu Desam leader, came under great pressure after the Congress emerged victorious in the Assembly elections in 2004.

There were allegations of financial irregularities against the dairy management and the State Government appointed a house committee to look into the charges. The Telugu Desam leader, Mr A. Tulasi Rao, had won the Dairy executive election and retained control as the Chairman.

In January, the dairy was brought under the Companies Act.

Condemning the decision of the Government, Mr Rao, said, "We will challenge it in a court of law. The Government has no right to issue such an ordinance. It is a company and it cannot be dissolved."

He said that Visakha Dairy had always made efforts to improve the lot of dairy farmers in the north-coastal districts and "the Congress Government has resorted to the undemocratic move to snatch the dairy from us."

Mr M. Anjaneyulu, the CPI leader and President of the AP Urban Co-operative Banks' Association, also called the move undemocratic.

Lok Satta has criticised the move of the Government.

More Stories on : Co-operatives | Dairy & Dairy Products | Andhra Pradesh

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Takeover of Visakha Dairy draws flak