Ballari: Ballari police have registered a case over the alleged misappropriation of Rs 16.5 crore at the Ballari unit of the Karnataka Milk Federation (KMF), with former nominated KMF member Dhananjaya Hamal accusing senior officials, directors and staff of diverting money meant for dairy farmers into third-party accounts.The complaint, filed at Brucepet police station, names H Marulasiddappa, retired deputy manager, procurement and technical, and current director; S Sudarshan Reddy, managing director; Venkatesh Javali, deputy manager, administration and planning; Shambhukumar, veterinary officer; Hanumantha Gowda, deputy manager, FPF; and Umamaheshwari, accounts assistant. They have been accused of conspiring to cheat farmers and the govt between 2018 and 2026.According to the complaint, milk suppliers affiliated with the Ballari KMF dairy had insured their cattle through private insurance firms. The premium was shared, with KMF contributing 60% and farmers paying 40%. When an insured animal died, the insurer transferred the claim amount to the federation’s account. KMF was then required to credit the compensation to the bank account of the farmer concerned.“Instead of transferring the insurance claim and welfare amounts to eligible farmers, the accused persons, acting in collusion, diverted the money to accounts of their associates and later withdrew it in cash for personal gain,” Hamal alleged in his complaint.The complaint states that insurance payouts linked to the deaths of hundreds of animals, along with funds from the KMF Ballari Farmers’ Welfare Trust, were allegedly deposited into multiple unrelated accounts. The total amount allegedly diverted is ₹16.5 crore.Police said the investigation would involve verification of bank trails, insurance records, trust ledgers and beneficiary lists to determine whether farmers were denied compensation and whether public and cooperative funds were siphoned off. Investigators are expected to seek account statements from KMF, insurance companies and the suspected recipients.Ballari superintendent of police Suman Pennekar said: “An FIR has been registered based on the complaint, and a detailed investigation is under way. We will examine financial transactions from 2018 to 2026, record statements of farmers and officials, and take action strictly according to evidence.”The allegations have sparked concern among milk producers, many of whom depend on insurance payouts to cushion the financial blow caused by livestock deaths.
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