Vijayawada: The Andhra Pradesh High Court has directed the state government not to spend any amount pursuant to the memorandum of understanding (MoU) it entered into with Amul Dairy.
A division bench comprising Justices Kongara Vijaya Lakshmi and D. Ramesh heard a petition on Thursday , filed by YSR Congress MP K. Raghu Ramakrishna Raju, stating that handing over of assets of AP Dairy Development Cooperative Federation Limited (APDDCF) to Gujarat Cooperative Milk Marketing Federation (GCMMF) Limited was illegal and that the MoU between both the parties was arbitrary.
The court declared that the AP cabinet decision dated 04-05-2021 handing over the APDDCF assets to GCMMF (Amul Dairy) was illegal, irrational, arbitrary and was in violation of the Article 14 of the Constitution. It declared Animal Husbandry Dairy Development and Fisheries department approving the MoU between state government and Amul Dairy and appointing the committee for fixation of lease rentals, for lease of assets of state government to Amul Dairy as illegal and arbitrary. The court also declared granting of loan of Rs 69 crore to Prakasam Milk Producers Company Limited was in derogation of law, contrary to the Companies Act, besides being irrational and arbitrary. Moreover, the court directed the state government and APDDCF not in any way utilise the funds of the state and its instrumentalities and for their employees for the business that is being proposed to be carried out by the Amul Dairy.
The court issued directions to serve notices to Amul Dairy and also to National Dairy Development Board (NDDB) and posted the next hearing in the case to June 14. Senior counsel Adinarayana Rao argued on behalf of the petitioner.
