The Tamil Nadu Makkal Urimai Amaippu, a Chennai-based anti-corruption group has approached the Madras High Court alleging a scam in the state government-owned milk cooperative, Aavin. Stating that the recent price hike of Rs 6 by the government was not necessary, the petition before the court alleges that several malpractices were involved in the sale of milk to private diaries across the state. The government had justified the price hike in August following a rise in procurement price to dairy farmers. The group alleges that Aavin has faced a loss of several crores not only in the sale of milk to private diaries but also due to 'malpractices' in the procurement of milk from dairy farmers.

‘Public paying for malpractices’

Specifically, the petition alleges that government officials across the state have sold milk and milk products to private dairies 'without any tender as per their whim and fancy.' Calling for a committee to look into the alleged malfeasance by officials, the group says that the public will continue to bear the brunt of the losses suffered by Aavin. Once Aavin increases the price, the private dairies following the same will increase the price and milk being an essential commodity will not be available in the future at economical rates to the general public, it argues.

Based on an RTI reply from the Tamil Nadu Co-operative Milk Producers' Federation Limited (TNCMPF), the group reportedly learnt that 'more than 3,60,000 Litres of milk has been sold at very less rate to private diaries namely M/s. Arcot Milk Transporters and M/s. RKR Diary Products Pvt Ltd.'

Thus, the petition asks why surplus milk that is available for sale to private diaries and federations, has not been sold to the general public at a lesser price. The group alleges, “It is pertinent to mention at this juncture that price was increased without any basis because [TNCMPF] wanted to sell the surplus milk to private diaries and transporters who in turn will sell the products to the general public at the increased rate.

Old scamsters back at it

It may be recalled that in 2014, a pilfering scam involving the state's milk supplier was unearthed when vans that were supposed to be transporting milk to a unit in Chennai were found to be carrying empty cans. With losses amounting to crores of rupees, it was found that a tanker with a capacity to hold 1,000 litres of milk was replaced with water. The Crime Branch-Criminal Investigation Department (CB-CID) took over the case not before Minister for Milk and Dairy Development Minister V Moorthy was sacked by then Chief Minister J Jayalalithaa, along with nine officials. “As a matter of fact, it was found that transporters who are blacklisted were again and again given priority because of their political influence and influence with officials of the second respondent.” says the petition.

‘Tailor-made tender rules’

The group points out that there is a ban on transporters owning private dairy farms submitting their own lorries for milk transportation tenders. However, they allege that both RKR Diary Products (which sells the 'Jallikattu' brand milk) and Arcot Milk Transporters violate the ban. “Despite the ban, the [TNCMPF] has gone to the extent of changing the tender conditions as if tailor made to suit the erring transporters,” the petition alleges. The petition also says that those with ‘political and administrative clout’ are getting picked for tenders.

In the 2014 scam, one of the prime suspects in the case, one Vaidyanathan was arrested. He worked as a transporter, leasing his lorries for milk transportation. While he was arrested for his involvement, the case was ultimately dismissed by the court. Tamil Nadu Makkal Urimai Amaippu alleges that the present 'scam' involves a company named Deepika Transports (sister concern of Arcot Milk Transporters) which is represented by Vaidyanathan's wife Revathy. The group points out the Madras High Court asking in 2014 why the milk cooperative 'had not cancelled the contract given to the said scamsters.'