Dhulipalla arrested over Sangam Dairy ‘scam’

VIJAYAWADA: Sleuths of the Anti-Corruption Bureau (ACB) on Friday arrested former Ponnur MLA and senior TDP leader Dhulipalla Narendra Kumar and two others in connection with a case filed against them for allegedly indulging in corruption in Sangam Milk Producers Company Limited (SMPCL), famously known as Sangam Dairy, by diverting funds and properties of the cooperative dairy for personal use. 

At around 6:30 am, ACB sleuths of Guntur Range visited Narendra Kumar’s residence in Chintalapudi village of Ponnur mandal and arrested him after serving a notice under Section 50 (ii) of the CrPC on his wife Jyothirmai. Around 100 police personnel were deployed in the village to prevent any untoward incident. Later, he was shifted to Vijayawada. 

The two other accused were identified as P Gopala Krishnan, MD of Sangam Dairy, of Guntur and M Gurunadham, District Cooperative Officer (DCO) of Ongole. While A1 in the case, Narendra, earlier served as the chairman of Guntur District Milk Producers Cooperative Union Limited (GDMPCUL) and Guntur District Milk Producers Mutually Aided Cooperative Urban Limited (GDMPMACUL), A2 in the case, Gopala Krishnan, served as the managing director of GDMPMACUL.

After six hours of interrogation, all the three accused were taken to ESI Hospital in Gunadala for necessary medical tests and produced before ACB fast-track court. The proceedings in the court were going on when the last reports came in. Gurunadham was sent to GGH as he tested positive for COVID-19. 

Based on a complaint filed by a person (ACB did want to disclose his name) and reliable information that the former Ponnur MLA committed grave irregularities with the help of two others, ACB officials filed a case under Sections 13(1)(c)(d) of the Prevention of Corruption Act, 1988 and Sections 408, 409, 418, 420, 465, 471, 120-B r/w 34 of  the IPC. ACB officials said it was a non-bailable offense, but they can seek bail from court. 

According to ACB sources, Dhulipalla was the mastermind behind the irregularities such as forgery, illegal transfer of lands worth over Rs 700 crore in the open market belonging to Sangam Dairy without government approval and other illegalities. The dairy was set up in 77 acres of land at Vadlamudi village of Guntur district and Narendra was its chairman.

During the investigation, ACB officials found that the accused committed the crime in 2013 after converting the dairy, which was under Cooperative Society sector, into a firm under the Companies Act by forging signatures of government officials and without obtaining necessary permissions from the government at that time. Anti-graft officials found that he converted the dairy into  a firm under the Companies Act for transferring 77 acres of land belonging to dairy in his name. He created fake certificates on these lands and took a loan of Rs 116 crore from a nationalised bank, the ACB said. 

Narendra had also transferred 10 acres land of the dairy to his trust Dhulipalla Veerayya Chowdary (DVC) and constructed a hospital on the land in trust’s name. The allegations against Narendra are serious, the ACB said in a statement. 

Charges against Ex-MLA  

Forgery, illegal transfer of lands worth over Rs 700 crore of Sangam Dairy without govt nod  
In 2013, he converted dairy under Cooperative Society into a firm under Companies Act by forging signatures of govt officials 
He also ‘created’ fake certificates on lands and took a loan of Rs 116 crore from a nationalised bank 
Transferred 10 acres to his trust Dhulipalla Veerayya Chowdary (DVC) and constructed a hospital