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  1. Another business controversy in the making? Amul Dairy MD K Rathnam quits amid Rs 450 crore-scam allegations

Another business controversy in the making? Amul Dairy MD K Rathnam quits amid Rs 450 crore-scam allegations

K Rathnam, managing director (MD) of Kaira District Co-operative Milk Producers Union Ltd (KDCMPUL), popularly known as Amul Dairy, has resigned from his post.

By: | Updated: April 1, 2018 6:44 PM
“I have given Amul 22 years of my life. Now, I wish to spend time with my family that is settled in Tamil Nadu and America. I also wish to pursue my interests and start something of my own,” Rathnam said.

K Rathnam, managing director (MD) of Kaira District Co-operative Milk Producers Union Ltd (KDCMPUL), popularly known as Amul Dairy, has resigned from his post. The resignation has come in the backdrop of an allegation of Rs 450-crore corruption in the co-operative. The Indian Express reported that the special board meeting of the cooperative has accepted Rathnam’s resignation. The board has also dismissed allegations that the development comes in the backdrop of an allegation of a Rs 450-crore corruption in the co-operative. Fifty five-year-old Rathnam was elevated to the post of MD in June 2014. He has resigned citing personal reasons.

“I have given Amul 22 years of my life. Now, I wish to spend time with my family that is settled in Tamil Nadu and America. I also wish to pursue my interests and start something of my own,” Rathnam was quoted as saying in the Indian Express report.

However, the resignation has sparked discussions about the internal politics in the organisation. On its part, the organisation has refuted reports that Rathnam had been found guilty of fraud. KDCMPUL chairman Ramsinh Parmar said the allegations were “far from truth” and “perpetuated by rumour mongers”. As per the statement, the Board of Directors have accepted the resignation of K Rathnam. The Amul press release also said that Jayen Mehta, Senior General Manager (Planning and Marketing), has been appointed as the incharge managing director of Kaira milk union.

If the reports and rumours turn out to be true, then resignation may become another business world controversy.

Another big controversy broke out earlier this week after CBI registered a preliminary enquiry against Deepak Kochhar, husband of ICICI bank MD and CEO Chanda Kochhar, officials of the Videocon group and others to determine whether any wrongdoing was involved in the sanctioning of a Rs 3,250 crore loan to the Videocon Group by the ICICI Bank Ltd as part of a consortium of banks in 2012. Conflict of interest question has been raised against Chanda Kochhar in the alleged scam.

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