HC restrains government from taking over Sangam Dairy

The Andhra Prdesh High Court on Friday suspended the Government Order issued for taking over the Sangam Dairy and allowed its directors to carry on the daily operations as usual. However, the court restrained the company from selling any of its assets without prior permission of the court.

The directors of Sangam Dairy had challenged the proposed takeover by the government, questioning the authority with which it issued the order.

They refuted the government’s allegation that the dairy was converted from a mutually aided cooperative society to a company in a fraudulent manner.

It may be noted that the Anti-Corruption Bureau registered a case against company chairman and former MLA Dhulipalla Narendra Kumar and managing director P. Gopala Krishnan, accusing them of committing various irregularities.

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