NGO Petitions Punjab CM for High-Level Probe into Alleged Multi-Crore Verka Seed Scam
The Janhit Adhikar Welfare Association (JAWA), a prominent non-governmental organisation, has formally petitioned Punjab Chief Minister Bhagwant Mann, urging him to order a comprehensive, high-level investigation into an alleged multi-crore seed scam linked to Verka Milk Plants. The NGO has leveled serious accusations, claiming that certain officials orchestrated a sophisticated "paper-only" supply chain operation designed to systematically "siphon" off substantial government subsidies and launder money through the bank accounts of unsuspecting farmers.
Details of the Alleged Fraudulent Scheme
In a detailed complaint filed recently, the NGO outlined the mechanics of the alleged scam. According to JAWA, the Verka Milk Plant initiated tenders in 2025 for the procurement of maize and millet fodder seeds, awarding contracts to three firms—two based in Telangana and one located in Mansa, Punjab. The association alleges that on February 12 and 13, 2025, Verka processed substantial bills from the Mansa-based firm without actually receiving any physical seeds whatsoever.
Further compounding the allegations, the NGO claims that the transport company listed on the delivery bills had been defunct for a period of three years, raising immediate red flags about the legitimacy of the transactions. The seeds were reportedly shown as received at the Hoshiarpur facility and were then immediately transferred on paper to the Dasuya store, creating a complex paper trail.
Pressure on Staff and Fake Documentation
The complaint further alleges that the procurement manager and the area in-charge exerted significant pressure on a local accountant at the Dasuya store to generate a series of fake bills for various village cooperative societies. This step was crucial in fabricating a veneer of legitimacy for the non-existent seed distribution.
"The scam extended deep into the village cooperative societies," stated the NGO, explaining that no seeds were ever delivered to these societies. Instead, officials allegedly distributed cash directly to the societies with instructions to pass it on to farmers. Farmers were reportedly told that their milk payments were unusually low for the month and were given cash to compensate for the supposed shortfall.
Money Laundering and Subsidy Misappropriation
Arun Singla, the General Secretary of JAWA, provided a detailed explanation of the alleged money laundering mechanism. "In reality, the societies deducted the purported seed costs from the farmers' digital milk payment accounts. This created a crucial paper trail, falsely showing that the seeds had been sold to the farmers. By 'whitening' the money through these fraudulent deductions, Verka Hoshiarpur was then able to unlawfully add a 30% government subsidy to the total transaction amount and transfer the full, inflated sum to the Mansa-based firm," Singla alleged.
Internal Discovery and Alleged Cover-Up
The NGO stated that the issue first came to light when the Dasuya store manager-cum-in-charge discovered glaring discrepancies in the records upon returning from leave. Despite repeated complaints being raised to senior officials, the manager and the accountant were allegedly instructed to remain silent about the irregularities.
While the procurement manager at Verka was subsequently chargesheeted and the area in-charge was suspended following persistent protests, JAWA claims that the "real masterminds" behind the elaborate scheme have remained untouched and unpunished. "An internal committee report dated May 20, 2025, has reportedly confirmed that the scam runs into crores of rupees," added Singla.
Potential Scale of the Scandal
Manjit Singh, President of the Janhit Adhikar Welfare Association, warned that the scam could be far more extensive than currently known. Citing the existence of over 5,000 milk cooperative societies across Punjab, Singh claimed that a comprehensive state-wide audit could potentially reveal a scandal worth hundreds of crores of rupees, devastating the dairy farming community and public coffers.
Copies of the formal complaint have been forwarded to the Enforcement Directorate (ED) and the Managing Director of Milkfed for further investigation and necessary legal action.
Official and Union Responses
When contacted for a response, Rajesh Balsotra, the General Manager of Verka in Hoshiarpur, stated, "Separate inquiries have been conducted by Verka, including one by the head office. Negligence was found on the part of some officials, following which disciplinary action was taken against the erring officers. One officer was chargesheeted, while another was suspended. No formal police complaint has been lodged against the concerned officers as of yet."
Punjab Kisan Union leader Charanjit Singh Bhinder echoed the demand for a thorough probe. "The dairy farmers associated with Verka were supposed to receive subsidised maize seeds as part of a profit-sharing arrangement. However, neither the promised subsidies nor the actual seeds ever reached the farmers. Verka officials availed the seed subsidy solely on paper. We held prolonged protests demanding a proper investigation and stringent action against all guilty officials," Bhinder stated.
He emphatically added, "Dairy farmers must be given their due right to the subsidy on seeds, which was denied to them due to this fraudulent scam. A thorough, transparent, and impartial probe must be conducted into this entire matter to ensure justice."
