GCMMF chief Chaudhary faces ouster

HC allows implementation of no-confidence motion but legal options still open

The high court (HC) on Monday allowed implementation of the no-confidence motion passed by a majority of Gujarat Cooperative Milk Marketing Federation (GCMMF) members against Chairman Vipul Chaudhary. This means he could be on his way out. However, he has the option of appealing before a bigger bench in the HC and in the Supreme Court.

On Monday, Paresh Upadhyay ruled the GCMMF could put into effect the motion. However, he stayed the implementation till January 11 on the request of Chaudhary’s lawyers seeking time to approach a higher court.

The court also referred Chaudhary’s petition challenging the October 25 meeting to discuss the motion, to a division bench on various law points.

As many as 13 of the 16 members voted in favour of the no-confidence motion on December 5 during a board meet. The members said the  motion was brought because they were not happy with the way Chaudhary functioned and his administration was not in the interest of the federation. They added the motion was needed to safeguard the interest of three-million milk producers.

After the motion was passed, GCMMF approached the HC in line with the directions of the Supreme Court issued in December while hearing Chaudhary’s plea challenging the motion.

GCMMF had argued a majority had supported the motion. Hence, it be implemented. Chaudhary’s lawyers argued there was no provision of passing a no-confidence motion against the chairman in the bye-laws of GCMMF, nor any in the Gujarat Cooperatives Society Act.

Chaudhary is facing heat from a majority of board members over mismanagement of the Mehsana District Cooperative Milk Producers' Union Ltd, also headed by him, as well as for meeting Congress Vice-Chairman Rahul Gandhi, allegedly with an eye on the National Dairy Development Board top job. The Mehsana union also came under GCMMF’s attack for a constant decline in milk procurement, setting up a 900,000-litres-a-day milk processing plant and the establishment of a three-million-litres-a-day milk packaging plant at Daruheda (Haryana) with Rs 300 crore.

Chaudhary is facing charges of corruption from members of the Mehsana Union. Last month, while hearing a public interest suit by Baldev Chaudhary and Mangal Patel, both members of the Union, the HC had directed the state government to probe the allegation of corruption against Chaudhary and his aides. The state government filed an inquiry report on the allegation.

In their suit, the petitioners alleged large-scale corruption by  Chaudhary and his aides. They also alleged misappropriation in the production of cattle feed by the union had resulted in a loss of Rs 200 crore. They have claimed the union was charging more for cattle feed from members.