Maharashtra's Minister for Dairy Development Eknath Khadse made the announcement at Jalgaon to dissolve Mahanand's executive body today, which was under the scanner for alleged corruption.
Incidentally, Nagawade happens to be a close confidante of Nationalist Congress Party (NCP) MP Supriya Sule, the daughter of NCP President Sharad Pawar.
NCP legislator and one of Mahanand's directors, Ramrao Wadkute also resigned after Nagawade's resignation.
The Board of Directors was under investigation by the Registrar of Co-operatives after it was alleged that some of them allegedly spent Rs 90,000 to Rs 1.20 lakh touring Israel and China, using Mahanand Co-operative Milk Diary's funds, after the Maharashtra government did not sanction the expenditure.
Mahanand has 34 members in its Board of Directors. It has a vacant seat and seven members were suspended earlier.
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