Rabakavi milk union faces Rs 16.5 crore embezzlement allegations; six booked

Ballari: Allegations of a multi-crore financial irregularity have surfaced in the Rabakavi milk producers’ cooperative union, which covers Ballari, Raichur, Koppal and Vijayanagara districts. Ballari’s Brucepet police have registered an FIR against six people, including managing director S. Sudarshan Reddy, over the alleged misappropriation of more than ₹16.5 crore meant for farmers towards livestock insurance claims and other benefits.

The case was registered following a complaint by former union director Dhananjaya Haval, who alleged that the irregularities took place between 2018 and 2026.According to the complaint, cattle belonging to farmers supplying milk to the union were insured through private insurance companies.

The insurance premium was reportedly shared between the union, which paid 60 per cent, and farmers, who contributed the remaining 40 per cent.

When insured cattle died, the compensation received from insurance companies was supposed to be transferred to the respective farmers. However, the complaint alleges that insurance compensation and funds belonging to the Farmers’ Welfare Trust, amounting to more than ₹16.5 crore, were not paid to eligible beneficiaries.

Instead, the money was allegedly transferred to bank accounts belonging to individuals known to the accused, including K. Basavaraj, K. Eramma, Sagar Babu and Sagar Rani. The complainant has alleged that the funds were diverted for personal benefit, causing losses to farmers and the cooperative union.

The other accused named in the complaint are retired deputy manager and union director H. Marulasiddappa, deputy manager for administration and projects Venkatesh Javali, veterinary officer Shambhu Kumar, deputy manager Hanumantha Gowda and accounts assistant Umamaheshwari.

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Coovercolly Indresh

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