Daijiworld Media Network - Udupi (JD)

Udupi, Sep 11: Udupi Zilla Raitha Sangha has accused DK district co-operative sugar factory management committee, technical committee and scrap dealer MS New Royal traders, Chennai of Rs 14 crore corruption charges in selling scrap of the Brahmavar sugar factory and for violating the bidding norms.

The members also gheroed the annual general body meeting of the DK district co-operative sugar factory which was happening at a nearby place. 

The Udupi Zilla Raitha Sangha organised a huge gathering of farmers of the area on Monday, September 11 in a private hotel in Brahmavar to enlighten the farmers about the corruption.

In his introductory remarks, Belve Sathish Kini, secretary Raitha Sangha said, "Today the general body meeting of DK Sugar factory is being conducted. Around 500 of us had filed the application for membership of the DK district co-operative sugar factory. But none of us has received the notice invite for the general body meeting. In 2020, a new management committee was formed. In the first meeting itself the management committee decided to conduct an feasibility inspection by the experts. The expert committee submitted its report stating that the factory is not fit for operations. Based on this report the committee requested government permission to sell the scrap of the factory. As many as 42 members had applied for tenders for the scrap sale. New Royal Traders Chennai won the bid. But as per the rules of the factory Rs 5 crore bank guarantee was to be submitted by the bidder. But this was also violated during the agreement. We filed an RTI and sought  information about the scrap business. The factory management committee denied to give the e-way bill copies. When we found out about the mismanagement of funds, the committee agreed that the mismanagement had happened by the bidder and we will ensure to avail the remaining around Rs 3 crore GST amount to be paid by the scrap buyer. We have submitted a memorandum to the departments of the government about the issue. But no progress was made. We even filed a PIL in the high court.

Pratapchandra Shetty, president, addressing the gathering said "The co-operative factory has more than 5,000 members. But only a handful of members have been invited for the general body meeting. There are no prefixes in this matter. We as farmers and their institutions have to raise our voice against this issue. This factory is an asset of farmers of Udupi, And Dakshina Kannada. We are doing an institutional and lawful protest against the issue. Even after our repeated efforts and memoranda, no response was received and this is the fate of our farmers. This should be tolerated. The copper and other metals had to be bifurcated and sold. The basic question including this in the bank guarantee was not followed. E-procurement of tendering process was also not followed. This is a huge channel, district, state-level officers are involved in this. E-way bill, way ridge bill, invoice, delivery note had to be maintained but no information about this is available."

Many leaders and ex-members of the board of directors of the sugar factory participated in the meeting of Udupi Zilla Raitha Sangha.

A general body meeting of the DK district co-operative sugar factory was also called on September 11. It was later postponed after the opposition of the members of the Udupi zilla raith sangha and shareholders of the co-operative sugar factory. The members of the Udupi Zilla Raitha Sangha accused the board of directors of not inviting the members for the general body meeting. A rift also arises between the members and the board of directors.

Later on, Ramesh, district registrar and managing director of the factory postponed the annual general body meeting.