Ludhiana: Milkfed GM, officials booked in subsidised ‘urea diversion scam’

Two private firms also named in FIR; SIT formed to probe alleged repackaging and diversion of fertiliser meant for farmers

Khanna Police on Wednesday booked the general manager of Milkfed’s cattle feed plant, a few other plant officials and owners of two private firms for allegedly diverting subsidised neem-coated urea meant for farmers, repackaging it as technical-grade urea and selling it for commercial gain.

Police said the investigation is underway and further action will be taken based on its findings. (HT File)

The FIR was registered following an inspection conducted by the agriculture department officials at the Milkfed cattle feed plant, located on National Highway, Khanna, on June 17.

During the inspection, the officials found 1,340 white bags labelled as technical-grade urea. The bags allegedly lacked mandatory labelling details, prompting officials to collect three samples for laboratory analysis.

According to the police, the laboratory report confirmed that the contents were subsidised agricultural-grade neem-coated urea meant exclusively for farmers, following which agriculture development officer Gurpuneet Kaur lodged a complaint and an FIR was registered at Khanna City-2 police station.

The case names the general manager and other officials of the state-run Milkfed plant, along with the owners of Muktsar-based Indo Organics and Delhi-based Manisha Trading Company.

The complaint alleges that subsidised urea supplied by the Government of India for agricultural use was diverted, repackaged in white bags and falsely sold as technical-grade urea, enabling illegal profits while causing losses to the state exchequer and defeating the objective of the subsidy. Investigators suspect the private firms supplied the diverted urea to the cattle feed plant at inflated rates in connivance with plant officials.

Senior superintendent of police Darpan Ahluwalia said a Special Investigation Team (SIT), headed by the SP (Investigation) and comprising the DSPs of Samrala, Khanna and headquarters, besides the SHO of Khanna City-2 police station, has been constituted to probe the alleged scam.

Subsidised agricultural urea is coated with neem oil and packed in yellow bags to prevent its diversion for non-agricultural use, while technical-grade urea, meant for industrial applications, is significantly costlier and packed in white bags.

Notably, the Punjab government had, two days earlier, chargesheeted seven officials and transferred another following a departmental inquiry into the matter.

Police said the investigation is underway and further action will be taken based on its findings.