A police complaint has led to an FIR in Ballari over the alleged diversion of more than Rs 16.5 crore meant for cattle insurance claims and compensation from the Farmers’ Welfare Trust of the KMF Ballari Milk Union between 2018 and 2026.
The case was registered on October 13 under Sections 316(2), 318(4) and 3(5) of the Bharatiya Nyaya Sanhita. Police have begun an investigation following a complaint filed by N Dhanunjaya Hamal.
The complaint names six people, including H Marulasiddappa, a retired Deputy Manager of Procurement and Technical and a two-time director of the Ballari Milk Union; S Sudarshana Reddy, Managing Director of the KMF Ballari Union; Venkatesh Jawali, Deputy Manager of Administration and Projects; Shambhukumar, a veterinary doctor; Hanumanta Gowda, Deputy Manager (F&F); and Umamaheshwari, an accounts assistant. The FIR also refers to other individuals whose bank accounts allegedly received the funds.
According to the complaint, dairy farmers supplying milk to the Ballari dairy insured their cattle through insurance companies under an arrangement in which the KMF Ballari Union paid 60% of the insurance premium and farmers paid the remaining 40%. When insured cattle died, the insurance proceeds were to be paid to the eligible farmers through the milk union.
The complainant alleged that eligible farmers were not paid and that insurance proceeds were instead diverted to the bank accounts of several individuals known to or favoured by the accused. The complaint also alleges that money from the union’s Farmers’ Welfare Trust was diverted through a similar arrangement.
The allegations place the milk union’s role as an intermediary at the centre of the investigation. The union collected or handled funds connected with insurance claims and welfare assistance, making its records, beneficiary lists, claim documentation and bank transfers central to establishing how the money moved and whether eligible farmers received payments.
The case also highlights the institutional dependence of dairy farmers on cooperative milk unions for access to insurance and welfare support. Under the reported arrangement, farmers contributed 40% of the cattle insurance premium while the union financed the remaining 60%. Any delay or failure in processing claims could therefore affect both the protection available to farmers and their access to compensation after the death of insured cattle.
The FIR does not establish guilt. The allegations will have to be tested through the police investigation and any subsequent legal proceedings. The complaint, however, identifies a period stretching from 2018 to 2026 and names serving, former and other employees of the Ballari Milk Union, indicating that investigators are examining transactions and administrative decisions over several years.
Police have taken up the investigation after registering the case. Further action will depend on the examination of the named accused, the individuals whose accounts allegedly received the money, and the financial and insurance records linked to the claims and the Farmers’ Welfare Trust.
