Managing Director Mr N J Baxi, and the Chief General Manager (Finance) R A Modi of Dudhsagar Dairy were finally granted bail by the Gujarat High Court. They were arrested in the last week of January.
The allegations against them related to the supply of cattle feed by Mehsana Union to Maharashtra State Cooperative Milk Federation. Mehsana Union had supplied cattle feed costing Rs 22 crore..
These facts and the chain of events were considered to be an offence by the Cooperative Commissioner and Registrar of Cooperative Societies, Gujarat State, Gandhinagar who directed the District Registrar, Cooperative Societies, Patan, to file a complaint as criminal breach of trust and financial offence. District Registrar forwarded written complaint to Mehsana City ‘B’ Division Police Station.
A press release sent by Dudhsagar Milk Union reads as follows
“Having heard the learned advocates for the parties and considering the overall facts and circumstances of the case and perusal of investigation papers, including letter dated 23/4/2013 addressed by the Chairman of Maharashtra Rajya Sahakari Dudh Mahasangh, Mumbai to the Chairman of GCMMF alongwith Resolution No.5(B) of GCMMF referring to the above letter, the Hon’ble Mr Justice Anant S Dave of the Gujarat High Court on 28/02/2014 ordered release of the applicants on bail, on executing a bond by both, of Rs.25,000 each with one surety of the like amount to the satisfaction of the trial court and subject to certain other conditions.”
Dudhsagar Dairy’s Chairman Vipul Chaudhary slide into controversy and had to lose his job of GCMMF Chairmanship after charges of running the milk union at his personal whims hogged media headlines. It is said that his growing affinity with Sharad Pawar and Congress cost him his job.