The state government has appointed inquiry officers to look into alleged irregularities and mismanagement in the administrative and financial dealings of the Malaprabha Cooperative Sugar Factory, located in M.K. Hubballi.
With the approval of Sugarcane Development and Sugar Minister Shivanand Patil, officers have been designated to conduct a thorough investigation. The probe will cover suspected illegalities in sugar sales, procurement of storage materials, and financial and administrative operations from 2018–19 to 2022–23.
Despite issuing notices to those concerned, no responses were received. As a result, the government has assigned retired district judge S.C. Ingalagi and retired additional commissioner of the cooperation department S.M. Kaluti to lead the inquiry and submit a report within three months.
During a recent surprise inspection by Minister Shivanand Patil, farmer leaders raised serious concerns regarding the factory’s deteriorating state. The current management attributed losses to various factors, including poor yield and prior mismanagement. Allegations of illegal sugar storage and misuse were also brought to the minister’s notice, which, according to the farmer leaders, were confirmed following a complaint to the District Collector.
In response, the chairman of the board pointed to growing competition from new sugar factories and internal disputes among farmer leaders as contributing factors to the factory’s losses.
With hundreds of families dependent on the factory, workers appealed to the minister to take decisive steps and ensure government intervention for its operation.
It was noted that under the leadership of Rudrappa Mokashi’s team, the factory, initially in loss, was revived within three years, debts were cleared, and Rs 15 crore was deposited in the bank.
However, farmer leader Basavaraj Mokashi accused the succeeding management of poor governance, leading to renewed losses. He demanded immediate removal of the current board, recovery of misused funds, and measures to prevent further misappropriation.
Farmer leaders also urged that the factory be operated with government support and that a government-appointed official be made the Managing Director.
