MADURAI: An inquiry conducted by Managing Director of Aavin N Subbaiyan on the company premises in Sathamangalam has allegedly brought to light malpractices and irregularities leading to Rs 30 crore loss to the government exchequer. An investigation is underway to ascertain whether former Milk and Dairy Development Minister KT Rajenthra Bhalaji has any link in these malpractices.
Subbaiyan who visited the office in the city on Wednesday held inspections and conducted inquiries on various aspects. According to sources, malpractices by way of procurement of substandard machinery by utilising the corpus fund of `30 crore from the period between 2019 and 2020 were found.
Further, indicating malpractice, the electronic chips that were fitted on nearly 5,000 Aavin milk vending cans in 2019 and 2020 were not functioning since day one, they added. “Besides, GPRS devices costing around Rs 1 crore that are fitted on all tanker lorries that are engaged in milk distribution were found to have been fitted wrongly and did not function since installation,” an official said.
Sources went on to add that the Aavin’s solar unit established on a 10-acre land in Kappalur with the aim of bringing down the monthly electricity bills amounting to Rs 30 lakh, has not generated even a single unit of electricity. Notably, an audit report in 2018 pointed out installation of substandard solar panels at a cost of about Rs 1 crore in Kappalur solar unit, sources further added.