Over Rs 5L ‘embezzled’ from Verka plant in Ludhiana

A Nawanshahr resident has filed a complaint with the Registrar, Cooperative Societies, Punjab, alleging embezzlement of Rs 5.42 lakh at the Verka Milk Plant in Ludhiana.

The complainant, Bhagwan Dass, alleged officials tried to cover up the fraud under the guise of Diwali gifts.

In his complaint dated April 4, Dass accused Daljit Singh, general manager, and Harjinder Singh, deputy general manager, of misappropriating goods worth Rs 5,42,030 and allegedly selling them illegally in the open market.

Daljit Singh is currently under suspension in connection with an unrelated matter and co-accused Harjinder is serving as the officiating manager.

The complainant said that the accused were trying to “legalise” the misappropriation by showing it as expenditure incurred on Diwali gifts for government officials.

The Tribune has accessed a copy of the complaint.

The accused, however, refuted the allegations.

Daljit Singh declined to comment on the contents of complaint, citing he is currently under suspension.

He, however, pointed out the complainant was terminated by the Verka plant a few years ago.

Harjinder Singh said, “The proposal of purchasing gifts was rejected by the board. I was not posted at Ludhiana when the issue was raised. The final decision regarding the missing amount will be taken by the higher authorities.”

The complainant points out that as per rules, government institutions, including Milkfed, are not permitted to spend public money on gifts to officials. It alleges the accused officials prepared an office note to mislead the Ludhiana Milk Union chairperson and get the amount approved by the board under “promotional activities”.

Raising questions over the procedure, the complainant said promotional expenses are meant for public events or consumer outreach, and are subject to strict limits. He claimed the general manager was authorised to spend only up to Rs 5,000 per month with proper documentation. Dass alleges no such documentation has been attached in this case.

The complaint alleged one of the accused was earlier involved in similar irregularities at the Bassi Pathana plant, where dairy products were misappropriated in the name of gifts.