Vigilance Bureau Flags Irregularities in Kerafed and Milma Overseas Export Contracts

The Vigilance and Anti-Corruption Bureau found irregularities in the procedures Kerafed and Milma followed in awarding overseas marketing and export contracts to private agencies, including Midnight Sun Global, a company owned by Bindu Menon, wife of former minister K B Ganesh Kumar. The Times of India reported that an action-taken report was submitted before the vigilance court at Muvattupuzha.

What the VACB Report Found on Kerafed and Milma Contracts

The report by the VACB special investigation unit-II identified the absence of documentary evidence of competitive tendering and inconsistencies in the terms and conditions of agreements with different agencies. The enquiry followed a complaint filed by Cheshire Tarzan before VACB, alleging a lack of transparency in awarding the contracts. The complainant sought an examination of whether undue favouritism or external influence had played a role, particularly in view of the alleged relationship between Bindu Menon as proprietor of Midnight Sun Global and former minister K B Ganesh Kumar.

According to the report, the petition verification found no documentary evidence to establish that either Kerafed or Milma had followed or initiated a competitive bidding or tender process for granting licences to export their products. The enquiry also found considerable variations in the terms and conditions of agreements executed with different agencies. While some agreements specified a contractual period of three years, others were limited to one year. Similarly, a minimum purchase quantity was made mandatory in certain agreements but was absent from several others.

The VACB director had entrusted the enquiry to the superintendent of police, special investigation unit-II, through an order dated May 18. The enquiry was conducted under a reference dated May 20, and the report was submitted on Oct 9. The enquiry report recommended expeditious follow-up action through the dairy development department and the agriculture department to ensure transparency in awarding such contracts and establish a uniform and systematic tendering process. The action-taken report was submitted to the court in compliance with its directions.

Milma's Earlier Contract and Quality Cases

Milma, the Kerala Co-operative Milk Marketing Federation, has faced other proceedings this year. The Kerala High Court directed a Special Investigation Team to conduct an expeditious probe into alleged misappropriation of ghee supplied by Milma to the Sabarimala Sannidhanam, The Hindu reported in August 2026. Kunnamangalam police registered a case against Milma Malabar Union CEO Georgekutty Jacob after a complaint alleged removal of union documents on September 18-19, The Hindu reported in September 2026.

Vigilance Bureau's Enforcement Record

The Vigilance and Anti-Corruption Bureau Kerala is a state-level law enforcement agency under the Government of Kerala that investigates corruption and bribery by public servants across all 14 districts of the state, according to akta.pro company records. The bureau was founded in 1964 and is headquartered in Thiruvananthapuram, with Manoj Abraham IPS serving as Director Vigilance. The same records show six special vigilance courts functioning in Thiruvananthapuram, Kottayam, Muvattupuzha, Thrissur, Kozhikode, and Thalassery for trial of cases filed by VACB, and two vigilance tribunals in Thiruvananthapuram and Kozhikode for disciplinary matters related to corruption involving gazetted officers.

Earlier Vigilance Inquiries in Kerala

The Vigilance and Anti-Corruption Bureau registered a case against officials in Kannur over alleged irregularities in land acquisition for the KINFRA Industrial Park, The Hindu reported in September 2026. The bureau recommended action against Pallassana village officials over alleged irregularities linked to a private quarry, The Hindu reported in September 2026. The bureau also sought government sanction to register cases against school officials in Kannur for allegedly manipulating student records, The Hindu reported in August 2026.

What Follows the Muvattupuzha Report

The VACB report recommended expeditious follow-up action through the dairy development department and the agriculture department to ensure transparency in awarding such contracts and establish a uniform and systematic tendering process.