A start has been made

Goa Dairy is an important organization in the co-operative sector that supplies milk to Goans. It has been enmeshed in controversy since the last Annual General Body Meeting (AGM) when it was announced that it had incurred a loss of Rs 5 crore loss at its Cattle feed Plant for last year. discussion. This loss was huge compared to earlier annual loss which in the tune of a couple of lakhs. 

However, acting on complaints of mismanagement the RCS recently disqualified seven Directors along with the MD along with four former Directors. They were held responsible for the losses generated due to decisions made on purchases. Following this move, the farmers now hope Goa Dairy follows the path of development and generates profits by conducting its business in a transparent manner. Before the RCS declared its decision, a few days ago an Assistant Manager / Engineer of Goa Dairy Vinayak Dharwadkar was caught red handed while accepting Rs 40,000 cash as part of a bribe, he had demanded Rs 5 lakh from the contractor for awarding a copy of tender order duly sanctioned to him. The RCS and ACB action helped clean the Goa Dairy.

Following the entry of Sumul  in Goa two years ago it was feared it would affect the fortunes of Goa Diary. The sentiment was that this government decision to allow SUMUL to operate in Goa would affect the chances of   survival of Goa Dairy and ultimately the interest of around 16000 farmers who are depend upon it for their livelihood who are supplying their milk to Goa Dairy through the 176 milk supplying Societies. However, the entry of Sumul did not have a major impact on Goa Dairy. It must be said more than two hundred farmers switched to SUMUL and Goa Dairy sale was reduced by 4000 litres, which was not much when one considers it conducts sales of around 80,000 litres per day in Goan Market. Later most of the farmers switched to Goa Dairy from Sumul.  Madhav Sahkari dared to file an official complaint that eventually resulted in the exposure of the mismanagement. The former Chairman Madhav Sahakari who had levelled the charge of mismanagement against the Goa Dairy MD Navso Sawanth  six month ago and who was the first to complain against the MD with RCS and even suspended the MD at that time welcomed the Court Order.

When asked about his own disqualification along with seven other Directors following the complaint with RCS against the Goa Dairy MD, Sahakari said based on his action the RCS conducted an inquiry which resulted in the suspension and the appointment of an Administrator, this HC order he felt would help clean up the affairs at Goa Diary. He said the newspapers and the media as a whole had helped a lot. 

Regarding his disqualification despite being a complainant he said he was confident of emerging clean after the enquiry and the reappointment as Director on the Board of Goa Dairy. He said the Directors were not fully disqualified by RCS but only restricted from working on the Board.  

When asked whether Four Directors who are not disqualified including Chairman Rajesh Faldesai has any power in the affairs of Goa Dairy , he said since a majority of Directors were disqualified, the Board was automatically dissolved and Chairman rendered toothless. 

It may be recalled that Madhav Sahakari who was elected Chairman of Goa Dairy two years ago, was the first to suspend Goa Dairy MD Navso Sawanth six month ago alleging mismanagement by MD Navso Sawanth in purchases resulting in losses. However, some BoDs did not like the decision of Sahakari and did not support him.  The BoDs instead alleged that Sahakari did not take them into confidence before suspending MD Navso Sawanth and brought a No confidence Motion against him and removed him from the post, later Rajesh Faldesai was elected as Chairman of Goa Dairy. 

However Sahakari`s decision proved right today as not only RCS suspended MD but also HC rejected interim relief to MD Navso Sawant. Sahakari who is disqualified said that in the interest of Goa Dairy he dared to take action against the MD six month ago suspending him but he was not supported by rest of Directors. He said he was studying the RCS order and had not decided whether to approach the court. He said he is open to inquiry and confident of coming clean after an inquiry and being reinstated as Director on Goa Dairy Board.

Goa Dairy Farmers Welcomed Decision, Says Administrator should rule Goa Dairy for at least six to eight Month till Goa Dairy affairs come on to the right track and makes a profit.

Goa Dairy Farmers appointed Committee Chairman Dattaprasad Savordekar welcomed the HC order rejecting relief to Goa Dairy MD Navso Sawanth who had challenged the RCS order to place him under suspension. Dattaprasad who led the agitations for the suspension of the MD including going on a hunger strike said the Administrator should thoroughly scan the affairs of Goa Dairy especially files related to purchases of raw material and machineries after suspension of Goa Dairy MD Navso Sawanth. He further said though RCS had not mentioned a time limit to hold the post of Administrator on Goa Dairy, it is necessary that till Goa Dairy management comes on right track and on the path to making a profit, he should be there   for at least six to eight months. It is his responsibility to hold election for the Board of Goa Dairy. He said main demand of farmers was to suspend MD for mismanagement that has been fulfilled and now they are hoping the   Administrator takes a decision in one and a half months to reduce rates of cattle feed which was hiked by Rs 2.50 by Goa Dairy. Secondly in order to run Goa Dairy in Profit the quality of milk produced in Goa Dairy should be improved. The quality of cattle feed produced at Goa Dairy Cattle feed plant should also be improved.

Finally farmers and Former Dairy Chairman Madhav Sahakari have demanded measure for the improvement of management at the Dairy. 

Vikas Prabu who is a farmer and also the Chairman of Milk Supplying Society at Bethora welcomed the decision and suggested measures 

n that quality of Cattle feed and Milk produced at Goa Dairy should be improved by Administrator so that sales are increased and farmers would get benefit from it through Goa Dairy Profit.

nVikas Prabu said the purchase system in Goa Dairy should be improvised to prevent corrupt practices leading to losses to Goa Dairy.

n Former Chairman Madhav Sahakari said in order to strengthen cooperative sector of Goa Dairy, there should be reforms in election of Goa Dairy Board. The Goa Dairy Board comprises of 12 Directors and is currently elected by Chairman’s of 176 milk Supplying Societies attached to Goa Dairy. He said 16000 farmers have only right to elect Chairman of its 176 societies and that in order to improvise Administration and management these farmers should be given the right to directly elect some Board of Directors.

Vikas Prabu said that at least 8 Board of Directors be elected by farmers   directly elect and remaining 4 by the Chairmen of the 176 Societies. He said he had also submitted a memorandum to the Chief Minister in this regard to improve Goa Dairy Management. Vikas Prabu a farmer and Chairman of Milk Society at Bethora expressed similar opinion that Farmers should be given right to elect at least 50 percent of the Board of Directors.

Last year in order to bridge the loss of Rs 5 crore at the cattle feed plant, the Goa Dairy Management hiked prices of Cattle feed rates by Rs 2.50 claiming that because of subsidized rate the cattlefeed plant was running at a loss. The farmers got furious over this decision and went on a hunger strike demanding a reduction in prices, however the Board refused their demands stating it was not affordable to give  provide subsidy on cattle feed and also lower the rates.

Goa Dairy Management gave the reason for losses to the cattle feed plant as fluctuating prices of raw material procured from other states as well as cattle feed supplying farmers at subsidized rates which could not be digested by farmers. 

Goa Dairy has around 16000 dairy farmers who supply around 60,000 to 70,000 litres to Goa Dairy through its 176 Societies everyday, with 20,000 litres being imported from neighbouring states.  It mechanically processes the 90,000 litres of milk at its plant at Curti Ponda and supplies the milk through 1200 authorised outlets all over Goa. The Goa Dairy is not able to meet fully the demand of the Goan consumer which is estimated to be around 4 lakh litres of milk every day and the shortfall is met by supplies from dairies from outside and also SUMUL in Goa. Around 300 workers , including officials are working at Goa Dairy`s various plant including Cattlefeed , milk processing , icecream and other Dairy products and earns good salaries as it is learnt that Goa Dairy Board is implementing Government Pay scale for its employees.

Rs 5 Crore loss

The Goa Dairy Cattle feed Plant was running into losses to the tune of lakhs for the past couple of years but it was during the last Annual General Body held in September it was revealed the cattle feed plant of Goa had incurred losses to the tune of Rs 5 Crores for the year that forced the AGM to evince interest in its business to find the causes. It appointed a Inquiry Committee led by Dattaprasad Savordekar who after two days was stopped from further inquiry by the Dairy Management stating that there was no provision for such a probe under cooperative law.

However, based on two days investigation he could lay hands on some documents based on which he filed complaints with Registrar of Cooperative Societies (RCS) against MD Navso Sawanth alleging a scam in Goa Dairy in purchases of raw material in Goa Dairy and even demanding to dissolve the Board and appoint Administrator for at least one year for the improvement of affairs of Goa Dairy. Following this after few months then Chairman Madhav Sahakari filed official complaint with RCS six month ago alleging mismanagement by MD causing losses to Goa Dairy. The rest of the Directors did not seem interested to support his decision and instead brought a No Confidence motion on him and removed him. The MD Navso Sawanth too refused to vacate his post stating that Chairman has no right to suspend him and only Board can issue his suspension order. He got a life at that time from suspension. 

The farmers launched an agitation and went on a hunger strike. Following their agitation and also an official complaint by Dairy Chairman ,  RCS appointed CA Yatish Vernekar and after conducting inquiry submitted report of mismanagement and irregularities in Purchases of not only Cattle feed plants but also the purchases related to fill pack machines, procurement of milk from outside state, recruitment etc. Following the report the RCS asked for an explanation from Goa Dairy Board warning to dissolve the Board and action on MD. However there after he kept his decision pending for more than a month that forced the Farmers appointed Inquiry Committee approach HC pleading to direct RCS to declare his decision. After HC direction the RCS declare his decision which is as follows.

RCS decision on mismanagement shook the Board of Directors with seven Directors disqualified, and though 4 were not disqualified including the Chairman the Board was in a minority and almost dissolved with Chairman having no power in decision making. RCS order ensured appointment of This is proved almost operation on mismanaged Goa Dairy as RCS order not only appointed Administrator but also suspended the MD and disqualified seven sitting Directors. It also held responsible four former Directors for the losses caused to Goa Dairy over purchases of fill packed Machine, ice cream plant machinery, recruitment of staff and purchase of raw material.

Further RCS decision to appoint an Administrator was challenged by the MD in HC and was rejected by HC refusing to grant interim relief. Now the MD is currently suspended by Administrator Damodar Morajkar pending inquiry against him

According to  Navso Sawanth who rejected interim relief by HC and who is facing  now suspension pending inquiry by Administrator, He and all the Head of Departments followed all formalities, adding that there has been no faulty decision on the part of mismanagement while purchasing fill pack machinery, ice cream plant and raw material for cattle feed plant and procurement of milk from outside state. As regards the fill pack machines they are purchased based on recommendation of Goa Dairy, engineering section of Goa Milk Union preferred Nichrome make fill pack machines instead  of Prism Packing which were purchased by the Goa Dairy. The Board is also represented by the Assistant Registrar of Cooperative Society at Ponda who did not object to such procedures, said Navso Sawanth in reply to RCS Notice. He  also gave similar explanations asserting his innocence with respect to other allegations.

However the RCS in its order also held responsible ARCS at Ponda for faulty decisions and inquiry against it.