The Gujarat Co-operative Milk Marketing Federation has cancelled a board meeting scheduled for Wednesday, which was called to discuss the resignation of managing director B M Vyas.
"We have cancelled the board meeting," GCMMF chairman Parthi Bhatol said.
A statement from GCMMF, which markets its products under the Amul brand, said: "The board meeting of GCCMF was requisitioned to discuss the letter of former managing director B M Vyas. However, eight of the 13 chairmen of member unions have sent letters asking to cancel the requisitioned board meeting and, accordingly, the meeting has been cancelled."
Vyas had tendered his resignation to the federation board on April 29, which was accepted by Bhatol.
"The acceptance of the MD's resignation by the chairman had sparked off a controversy as only the board is empowered to do so, and not the chairman," sources said.
Following this development, at least nine directors on the GCMMF board held a meeting and asserted that the power to accept the MD's resignation does not rest with the chairman.
Following this, a board meeting was called on June 30.
"As eight out of total 13 directors have given us in writing that they do not feel the need to discuss the issue, we have cancelled the board meeting," Bhatol said.