Chandigarh: Punjab Police have registered a criminal case against the General Manager and other officials of Punjab’s state-owned MILKFED cattle feed plant in Khanna, along with the owners of two private firms, over allegations of diverting subsidised neem-coated urea intended for farmers and passing it off as higher-priced technical-grade urea.
The FIR alleges that the accused misused fertiliser subsidised by the Government of India, causing losses to the public exchequer while generating illegal profits through the sale of agricultural-grade urea in industrial packaging.
FIR Names MILKFED Officials and Two Private Firms
The case has been registered at Khanna City-2 Police Station against:
- The General Manager and other officials of MILKFED’s cattle feed plant on GT Road, Khanna.
- Muktsar-based M/S Indo Organics.
- Delhi-based M/S Manisha Trading Company.
MILKFED, which markets dairy products under the Verka brand, operates cattle feed plants at Khanna and Gurdaspur.
Alleged Diversion of Subsidised Fertiliser
According to the FIR, the accused allegedly diverted neem-coated subsidised urea, supplied under the central government’s fertiliser subsidy programme for agricultural use, by repackaging it into white bags labelled as technical-grade urea.
Agricultural urea is typically packed in yellow bags and coated with neem oil to discourage diversion for non-agricultural purposes, while technical-grade urea—used in industrial applications—is sold at a significantly higher price and packed in white bags.
Officials allege the repackaging enabled subsidised fertiliser to be sold as industrial-grade material for unlawful financial gain.
Inspection Led to Seizure
The complaint was filed by Agriculture Development Officer Gurpuneet Kaur, who stated that officials from the Agriculture Department inspected the MILKFED cattle feed plant on June 17.
During the inspection, authorities reportedly found 1,340 bags of 50 kg each labelled as technical-grade urea. Investigators also noted that the bags allegedly lacked mandatory statutory labelling.
According to the complaint, laboratory analysis of three collected samples confirmed that the contents were agricultural-grade subsidised urea rather than technical-grade material.
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The FIR alleges that the diversion took place “in connivance” with the General Manager and other officials of the MILKFED cattle feed plant.
SIT Formed
Khanna Senior Superintendent of Police Darpan Ahluwalia said a Special Investigation Team (SIT) headed by the Superintendent of Police (Investigation) has been constituted to investigate the case.
The SIT also includes:
- DSP Samrala
- DSP Khanna
- DSP Headquarters
- SHO, Khanna City-2 Police Station
Departmental Action Already Initiated
Before the FIR was registered, the Punjab government had initiated departmental proceedings into the alleged irregularities.
According to official sources, seven officials have been chargesheeted, while one official has been transferred following a departmental inquiry.
Separately, Gurbinder Singh, former director of the Verka Milk Plant in Ludhiana, has written to the Department of Cooperation seeking the immediate suspension of the General Manager to ensure an impartial investigation.
Legal Provisions Invoked
Police have registered the case under multiple provisions, including:
- Sections 2, 3, 7, 8, 19 and 25 of the Fertilizer (Control) Order, 1985;
- Sections 3 and 7 of the Essential Commodities Act; and
- Sections 318(4) (cheating) and 61(2) (criminal conspiracy) of the Bharatiya Nyaya Sanhita (BNS).
Wider Significance
The case has drawn attention because it involves Punjab’s premier dairy cooperative, whose cattle feed operations support thousands of milk producers across the state. The alleged diversion of subsidised fertiliser—intended to reduce input costs for farmers—raises concerns over misuse of government subsidies, supply chain oversight and governance within cooperative institutions.
The investigation is underway, and the allegations remain subject to judicial scrutiny. No court has yet determined the guilt or liability of the accused.
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