Police Register FIR Against Six Ballari Officials Over ₹16.5 Crore
The case was opened at Brucepet police station after a complaint from N. Dhananjaya Hamal, a former director of the cooperative’s board. Police are examining bank statements and accounting records to establish how compensation meant for milk producers was moved from designated accounts.
The FIR cites provisions of the Bharatiya Nyaya Sanhita covering criminal breach of trust, cheating and acts carried out with common intention. The allegations concern payments connected with livestock insurance as well as disbursements from the Farmers’ Welfare Trust. The complaint says the money was withheld from farmers whose animals had died.
The affected organisation is the Raichur, Ballari, Koppal and Vijayanagara District Co-operative Milk Producers’ Societies Union, commonly known as the Ballari Milk Union. It operates under the Karnataka Milk Federation and manages dairy cooperative societies, milk-collection facilities and processing operations across the four districts.
Under the insurance arrangement described in the complaint, farmers enrolled cows and buffaloes through commercial insurers. The union paid 60% of the premium, while farmers covered the remaining 40% through deductions from their milk payments. When an insured animal died because of disease, natural causes or medical complications, the insurer was expected to transfer the settlement to the union for payment to the farmer, alongside any eligible welfare assistance.
Investigators and forensic auditors have identified bank accounts that were allegedly used as intermediaries for insurance and welfare transactions. The complaint lists account details and transfers that it says moved institutional funds into private accounts instead of sending them to policyholders. Police have not announced the outcome of the investigation.
The Farmers’ Welfare Trust is financed through producer contributions and the union’s operating surpluses. Its stated purpose is to provide support during events including livestock disease outbreaks, drought and other agricultural emergencies. For affected smallholders, compensation for a dead dairy animal can provide funds to replace productive livestock and maintain household income. The FIR will determine whether the alleged diversion occurred and who was responsible.
