Whistleblower seeks disqualification of MLC Hattiholi as chairman of sugar factory

Belagavi: Whistleblower Basavaraj Kurer has approached the joint registrar of cooperative societies, seeking the disqualification of MLC Channaraj Hattiholi from the post of chairman of Malaprabha Cooperative Sugar Factory at MK Hubli, alleging violations of provisions under the Karnataka Cooperative Societies Act, 1959.In a written complaint, Kurer stated that Hattiholi also serves as the director at Harsha Sugars Pvt Ltd, located in Savadatti taluk. According to Kurer, holding positions in two entities engaged in similar business could amount to a conflict of interest under Section 29C of the Cooperative Societies Act.Kurer argued that a person occupying key positions in two sugar industry entities may face a situation of dual loyalty, which could undermine the principles governing cooperative institutions. "Holding authoritative positions in two firms of the same nature creates a conflict of interest. Such dual roles are against cooperative laws. The joint registrar should initiate action and immediately disqualify Channaraj Hattiholi from the chairman's post of Malaprabha Cooperative Sugar Factory," he stated in his letter.Responding to the allegations, Hattiholi said he was democratically elected along with his panel in the factory elections. "Farmers and shareholders elected us and placed their trust in us. The allegations made against me are personal in nature. Let the law take its own course," he said.Hattiholi also pointed out that the Malaprabha Cooperative Sugar Factory faced severe financial difficulties for several years. He said the factory accumulated losses and did not clear its bank dues for a long time, while employee salaries also remained unpaid in the past."We cleared the pending salaries and are working to revive the factory. Efforts are being made to increase the crushing capacity through modifications this year. Bankers already initiated action, and we are trying to convince them and seek more time," he said.He added the future of many workers, farmers and shareholders is linked to the factory's revival. "My fellow directors and I are committed to improving the situation and restoring the factory's operations," Hattiholi added.