Belagavi: A complaint has been submitted to the joint registrar of cooperative societies seeking the disqualification of Channaraj Hattiholi from the post of chairman of the Malaprabha Cooperative Sugar Factory, The Times of India reported.
Whistleblower Basavaraj Kurer alleged that Hattiholi violated provisions of the Karnataka Cooperative Societies Act, 1959 by holding positions in two entities involved in the sugar business.
In a written complaint, Kurer stated that Hattiholi also serves as a director of Harsha Sugars Pvt Ltd, located in Savadatti taluk. According to the complaint, holding positions in two organisations engaged in similar activities could lead to a conflict of interest under Section 29C of the Act.
Kurer argued that occupying key roles in two sugar industry entities may lead to divided responsibilities and could go against the principles governing cooperative institutions. In his letter, he urged the joint registrar to take action and immediately disqualify Hattiholi from the chairman’s post at the Malaprabha Cooperative Sugar Factory.
Responding to the allegations, Hattiholi said he and his panel were elected democratically in the factory elections. He said farmers and shareholders had placed their trust in them and described the allegations as personal in nature, adding that the matter should be decided according to law.
Hattiholi also said the Malaprabha Cooperative Sugar Factory had been facing serious financial difficulties for several years. According to him, the factory had accumulated heavy losses, bank dues had remained unpaid for a long time and employees’ salaries were also pending in the past.
He said the management had cleared the pending salaries and was now working to revive the factory. Efforts are also being made to increase the crushing capacity through modifications this year, he added.
Hattiholi further said banks had already initiated action over pending dues, but the management was trying to convince lenders and seek more time. He added that the future of many workers, farmers and shareholders depends on the revival of the factory, and the board is committed to improving the situation and restoring operations.
