₹100 Crore Alleged Corruption at Parag Dairy Under Scanner, Probe Ordered Against Chairman and Four Others

Rinky Rai
By Rinky Rai - A freelance journalist
3 Min Read

Administrative scrutiny has intensified over alleged financial irregularities worth nearly Rs 100 crore in government grants at the Gagol-based Parag Dairy in Meerut, alongside concerns over milk producers not receiving payments for four months. Uttar Pradesh Dairy Commissioner Dhanlakshmi K. has ordered the managing director of Pradeshik Cooperative Dairy Federation (PCDF), Lucknow, to initiate a preliminary inquiry covering 12 specific points to fix accountability among the officials involved. The administration has clarified that financial losses caused to the dairy will be recovered directly from any officers or staff members found guilty.

Five Named in Formal Complaint to Dairy Commissioner

​The action follows a written complaint submitted on July 27 to the Dairy Commissioner by Vedprakash, a representative of the Milk Producers Cooperative Society. The complaint directly names five individuals, including Parag Milk Union chairman Rajni Devi, general manager Avinash Satyarthi, and regional dairy development officer Natthu Singh, as well as the chairman’s father-in-law Balraj and brother-in-law Pradeep. The complainant has alleged widespread corruption, institutional damage to the dairy, and financial misconduct involving public funds.

Allegations of Fake Milk Supplies and Salary Irregularities

​The complaint outlines serious charges involving fraudulent supplies of milk from the Gagol plant to Baghpat, Delhi, and Hapur, alleging that public funds were siphoned off in the name of transport and rent. Accusations also point to financial misappropriation in the biomass supply and plant management, including commission payments from a contractor being diverted to a relative’s bank account. Investigators will further examine withdrawals made against non-existent vehicles, fake procurement records created under defunct cooperative societies to show synthetic milk supplies, and salaries drawn for individuals who never reported for duty.

Recovery Proceedings Under Cooperative Societies Act

​Taking serious note of the matter, the Dairy Commissioner directed PCDF Lucknow to submit a formal proposal for financial recovery under Sections 65 and 68 of the Uttar Pradesh Cooperative Societies Act, 1965, against any personnel found responsible. Addressing the matter, regional dairy development officer Natthu Singh stated that Vedprakash had previously lodged a complaint with the Chief Minister, after which a high-level committee set up by the managing director conducted a probe, though he remained unaware of its findings. General manager Avinash Satyarthi could not be reached for comment.

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