Ludhiana: Milkfed GM and officials booked in urea diversion scam

Ludhiana police have filed a case against the general manager of Milkfed and several of its officials, alleging that they were involved in a scheme to divert subsidised urea meant for farmers. The First Information Report also names two private firms that are alleged to have repackaged the fertilizer and facilitated its diversion. A special investigation team has been set up to examine the matter in detail, signalling the seriousness with which the authorities view the alleged misuse. Urea subsidies are a crucial support for Punjab’s farming community, and any diversion of the product undermines the intended benefits. The subsidy scheme, introduced to keep fertilizer prices affordable for small and marginal farmers, has been a focal point of policy debates in Punjab for years. Officials are tasked with monitoring the distribution network to prevent leakage, but instances of misuse have occasionally surfaced, prompting government reviews. Local farmers have long complained about irregular supplies, and the latest case has revived those concerns. While the investigation is still underway, the filing of charges demonstrates the administration’s intent to address alleged violations. Milkfed, a state‑run cooperative, is responsible for supplying urea to farmers across Ludhiana district and surrounding areas, and its officials are expected to oversee the proper distribution of the product. The two private companies named in the FIR are accused of acting as intermediaries, repackaging the subsidised urea and moving it outside the official supply chain. The case reflects broader challenges in regulating agricultural subsidies and may prompt further scrutiny of similar practices in the state. Milkfed, a cooperative that operates under the state’s agricultural department, is responsible for procuring and distributing urea across Ludhiana district and neighboring areas. Its mandate includes ensuring that subsidised fertilizer reaches the small and marginal farmers who depend on it for crop production. The case has been registered under relevant sections of the Indian Penal Code and the Agriculture Produce Act, and the police have taken statements and collected documentary evidence, and the matter is being examined thoroughly. The special investigation team comprises senior police officers and officials from the agriculture department, and it will review financial records, procurement logs and transportation documents to trace the movement of the urea. If the investigation confirms the diversion, it could lead to penalties for the individuals involved and possible reforms in the distribution mechanism. Farmers have expressed worry that any disruption in urea supply could affect sowing schedules, though no public protest has been reported yet. The incident is one of several recent instances where alleged misuse of agricultural subsidies has come to light in the state, underscoring the need for stronger oversight. The cooperative’s annual reports indicate that urea procurement has been a major component of its budget, and any irregularity could impact its financial stability. Authorities have not disclosed the names of the private firms involved, but they are known to operate in the regional agro‑input market. The filing of the case marks a rare instance where a state‑run cooperative’s top management faces legal action for alleged misuse of a public subsidy. The cooperative’s board has not yet issued a public statement, and the focus remains on the investigative process. The case has attracted attention from local political circles, with representatives from different parties indicating they will monitor the proceedings. Legal experts note that the provisions under which the case is filed allow for both criminal charges and civil remedies, depending on the evidence presented. The district administration has said it will cooperate fully with the investigation team, providing any necessary records or access to facilities. While the exact volume of diverted urea has not been quantified, the allegations suggest a systematic pattern rather than an isolated incident.

Source: Hindustan Times