The Hindu

• Court tells State it cannot take action against KMF on results of re-verification

Bangalore, Nov 27: The Karnataka High Court on Wednesday permitted the State Government to re-verify and re-examine the accounts of Karnataka Milk Federation (KMF).

A Division Bench comprising Chief Justice P.D. Dinakaran and Justice V.G. Sabhahit modified a single judge order staying the audit and examination of KMF accounts. The Bench passed the order on an appeal by the State and KMF against a single judge order staying a notification by the Registrar of Cooperative Audit seeking audit of KMF’s books of accounts.

When the matter came up, Advocate-General Uday Holla, appearing for the State, contended that the Government had ordered re-verification of KMF books from 2001 to 2007 as there were reports of certain irregularities. He said half of the auditing work was over when the single judge stayed it.

Senior counsel Basava Prabhu Patil appearing for the Registrar of Cooperative Audit said there was no cause of action for the KMF to have approached the court. No show cause notice was issued and all that the Registrar had done was to order a re-verification of accounts.

Senior counsel Jayakumar Patil, who appeared for KMF, assailed the action of the Registrar, saying that he had based the order for re-verification merely on a Government letter. He urged the court against vacating the stay and said the matter could be argued before the single judge for expeditious disposal.

The Bench remarked that the Supreme Court in several cases had pointed out that no stay orders should be given in cases relating to corruption, nepotism or any other irregularity. It said it would allow the re-verification to go on but made it clear to the State that it could not take any action against the KMF on the results of the re-verification.

The Bench said the State could take action only after the result of the petition.

KMF moves court

The High Court on Wednesday ordered issue of notices to the State Government on a petition by Karnataka Milk Federation (KMF) challenging a government notification restraining it from raising the milk price by Rs. 2 a litre.

KMF, which is headquartered in Bangalore and 13 milk unions in the State had filed the petition against a notification by the Principal Secretary to the Department of Animal Husbandry and Fisheries directing them not to give effect to any milk price hike.

KMF and the milk federations of Bangalore Rural, Kolar, Raichur, Bellary, Koppal, Chamarajnagar, Gulbarga, Bidar, Tumkur, Mandya, Hassan, Bijapur, Belgaum and Dakshina Kannada had challenged the Government notification.

They said if the High Court did not intervene and permit them to raise the prices of milk, the unions would suffer. They said the decision to hike the prices was taken by the Programme Committee which met on June 23, 2008.

Justice D.V. Shylendra Kumar ordered issue of notices and adjourned further hearing of the case.