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₹100 Crore Alleged Corruption at Parag Dairy Under Scanner, Probe Ordered Against Chairman and Four Others

September 9, 2026

Administrative scrutiny has intensified around alleged financial irregularities worth nearly ₹100 crore in government grants at the Gagol-based Parag Dairy in Meerut, alongside separate concerns that milk producers haven't been paid for four months. Uttar Pradesh Dairy Commissioner Dhanlakshmi K. has ordered the managing director of the Pradeshik Cooperative Dairy Federation (PCDF), Lucknow, to initiate a preliminary inquiry covering 12 specific points, aimed at fixing accountability among the officials involved. The administration has made clear that any financial losses caused to the dairy will be recovered directly from officers or staff found guilty.

Five Named in a Formal Complaint

The action follows a written complaint submitted on July 27 to the Dairy Commissioner by Vedprakash, a representative of the Milk Producers Cooperative Society. The complaint directly names five individuals: Parag Milk Union chairman Rajni Devi, general manager Avinash Satyarthi, regional dairy development officer Natthu Singh, along with the chairman's father-in-law Balraj and brother-in-law Pradeep. The complainant has alleged widespread corruption, institutional damage to the dairy, and financial misconduct involving public funds. As with any complaint at this stage, these remain allegations, not established findings.

What's Actually Being Alleged

The complaint outlines several distinct charges. It alleges fraudulent milk supplies were shown moving from the Gagol plant to Baghpat, Delhi, and Hapur, with public funds allegedly siphoned off under the guise of transport and rent costs. Separate accusations point to financial misappropriation in biomass supply and plant management, including commission payments from a contractor allegedly diverted into a relative's bank account.

Investigators are also expected to examine withdrawals made against vehicles that reportedly don't exist, fake procurement records allegedly created under defunct cooperative societies to show synthetic milk supplies that never actually happened, and salaries allegedly drawn in the names of individuals who never actually reported for duty, a combination that, if substantiated, would point to a fairly systematic pattern of fund diversion rather than isolated lapses.

Recovery Proceedings Now in Motion

Taking serious note of the complaint, the Dairy Commissioner has directed PCDF Lucknow to submit a formal proposal for financial recovery under Sections 65 and 68 of the Uttar Pradesh Cooperative Societies Act, 1965, against any personnel found responsible. This kind of thorough financial investigation will need to trace exactly how grant funds and milk-supply payments actually moved through the dairy's accounts before recovery proceedings can meaningfully proceed against specific individuals.

Response From Officials Named

Regional dairy development officer Natthu Singh, one of those named in the complaint, said Vedprakash had previously lodged a complaint with the Chief Minister, after which a high-level committee set up by the managing director conducted a probe, though he said he remained unaware of that committee's findings. General manager Avinash Satyarthi could not be reached for comment.

FAQs

Q1. How large is the alleged corruption at Parag Dairy?

Nearly ₹100 crore in government grants, alongside separate concerns that milk producers haven't been paid for four months.

Q2. Who has been named in the complaint?

Parag Milk Union chairman Rajni Devi, general manager Avinash Satyarthi, regional dairy development officer Natthu Singh, and two relatives of the chairman, Balraj and Pradeep.

Q3. What kinds of financial irregularities are alleged?

Fraudulent milk supply records, misappropriated transport and rent funds, diverted contractor commissions, withdrawals against non-existent vehicles, and salaries paid to people who never worked.

Q4. What action has the Dairy Commissioner ordered?

A preliminary inquiry covering 12 specific points, along with a formal recovery proposal under the UP Cooperative Societies Act against any officials found responsible.

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