Don’t Go Ahead With Amul Deal: HC to Jagan Govt

In a shocker to the Andhra Pradesh government, the High Court directed the YCP government not to go ahead with the MoU it entered into with Amul Dairy and not to spend any amount on it.

The court issued the directions while hearing to a petition filed by YCP rebel MP K. Raghu Ramakrishna Raju which said that giving away the property of AP Dairy Development Cooperative Federation Limited (APDDCF) to the Gujarat Cooperative Milk Marketing Federation Limited (which runs Amul Dairy) was illegal. The petitioner also said that the MoU between both the parties was arbitrary.

The AP cabinet took a decision regarding the Amul deal last month.

The AP high court also said that handing over the APDDCF assets to Amul Dairy was illegal, arbitrary and in violation of the Article 14 of the Constitution. The court also asked for serving notices to Amul Dairy and National Dairy Development Board. The court declared that the lease of state assets to the Amul Dairy was illegal and arbitrary.

The high court also faulted the state government for granting loan of Rs 69 crore to Prakasam Milk Producers Company Limited stating that it was contrary to the Companies Act, irrational and arbitrary.

The court posted the next hearing on MoU with Amul to June 14.

Telugu Desam leaders expressed happiness over the HC directives to the YCP government and said that Chief Minister Y.S. Jagan Mohan Reddy was not hesitating to even mortgage the interests of the state just to quench his vengeance on their party chief N. Chandrababu Naidu.

It is being said that by handing over the assets of the AP Dairy Development Cooperative Federation Limited (APDDCF) to Amul Dairy, Jagan is trying to hit the finances of former CM and Opposition leader N. Chandrababu Naidu, who started Heritage Foods, which includes a cooperative dairy unit.

Recently, Jagan launched Jagananna Palavelluva-AP Amul project in West Godavari district.