DoodhSagar: Gujarat High Court dismissed a petition filed by Mehsana Dairy Union

The Gujarat High Court not only dismissed a petition filed by Mehsana Dairy Union on the issue of special audit but also observed that the total scam or fraud may be quite more than Rs 717 crore.

Readers would recall Mehsana District Cooperative Milk Producers’ Union had filed a petition seeking quashing of an order of the Registrar of Cooperative Societies to conduct special audit of the union.

The High Court allowed the Registrar to conduct a special audit dismissing the petition.

When Vipul Chaudhary was the chairman of Mehsana dairy aka Doodhsagar Dairy, there were allegations that he had defrauded the Union of over Rs 707 crore. Chaudhary was removed from the post in 2015 on the charges of fraud, and was barred from contesting elections for three years.

In its order the court said, “It seems that total scam or fraud may be quite more than Rs 717 crore and therefore there is certainly a need for special audit of the petitioner union to find out that whether there is actually any scam and if it is so then to what extent and how and who is responsible.” The court then dismissed the petition.

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