Report nails GM of milk procurement society for causing loss of over Rs 1.3cr | punjab | Hindustan Times
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Report nails GM of milk procurement society for causing loss of over Rs 1.3cr

punjab Updated: Jun 06, 2014 13:31 IST
Arjun Sharma
Arjun Sharma
Hindustan Times
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A loss of more than Rs 1.30 crore was incurred by the Ludhiana District Cooperative Milk Producers Union Limited situated on Ferozepur Road at Milkfed plant due to the negligence on part of the firm’s general manager SR Saini, who allegedly did not follow the rules in procurement of milk from a firm in Rajasthan.

The cooperative society has been assigned the task to procure milk for Ludhiana district by the state-owned Milkfed.

The startling details have been revealed in a special report of the union, in which, it has been claimed that Saini got milk for a period of one year from Ganesh Sewa Samiti, Rajasthan, against the permitted 15 days.

He did not even follow the norms that stated the milk could be “procured from the said firm for a period of only 15 days only”.

Reference of a letter of Milkfed was given in the case of procurement for 15 days but violating the norms, the milk was procured for a year.

“Milk was procured to benefit the firm, Ganesh Sewa Samiti,” stated the special report that has been accessed exclusively by Hindustan Times.

The report has given a figurewise detail of the quantity of milk that was procured and even the quantity of fat produced by the milk, later used to get skim milk powder.

“The general manager didn’t take any per mission from the board of directors to procure milk from the said firm.

A total of 86,043,50 litres of milk was procured out of which 3,29,827kg fat and 6,8,5064 solids not fat (SNF) was produced.

From this SNF, 7,08,834 kg of Skimmed Milk Powder (SMP) was produced,” states the internal report.

The report further states that overstocking of SMP had also occurred which continued till year 2012. The variable cost of this milk powder was Rs 176.86/kg.

The value of the skimmed milk powder was estimated to be Rs.12,536,4381.However, only Rs.11, 234,5505 were recovered from the sale of the milk powder in year 2012-13, thus, resulting in loss of Rs 1,30,47,818.

When contacted, Saini said that he was in a meeting and thereafter, could not be contacted despite SMSes and repeated calls for his version.