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Home > Bare Acts > Comments on National Dairy Development Board Act,1987:::FORMATION OF COMPANIES WITH PREVIOUS APPROVAL OF CENTRAL GOVERNMENT



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Posted by Joseph Purathur

04/02/2016 16:28:13

Section 43 of NDDB Act (37 of 1987) has been misinterpreted by NDDB, after Dr Kurien left NDDB in 1998, to create companies dealing with milk and milk products for commercial purposes, as against 'development' purposes which was paramount in consideration for creation of NDDB as an institution of national importance. If it was for selling milk, obviously, NDDB would not have been bestowed with a tag of 'national importance'. Its preamble and more so section 16 (1) (b) refers to the emphasis on 'cooperative strategy' for dairy development -- not the corporate route. The Ministry of Law had given its view on more or less same lines which forced NDDB to close down/merge some of the grand daughter companies it had created under the MDFVL. Even the MDFVL strictly speaking is a violation of the spirit of NDDB Act. It needs to be investigated and corrective steps taken in the interest of millions of small and marginal cooperative dairy farmers who do not get any significant help from NDDB due to its vested interest in its own dairy business (rather than developmental work).

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