BOARD MEETING HELD TO DISCUSS ABOUT EVICTION OF PLANT GIVEN ON LEASE TO ANOTHER COMPANY
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KMG Milk Food's board met on April 4, 2025 and reviewed a lease dispute with KVG Agro Private Limited, which had taken the company's plant at Village Masana, Kurukshetra on lease. The board noted that the lessee failed to maintain the plant, causing significant deterioration, and refused to vacate despite repeated reminders. It was also reported that KVG Agro's management made life-threatening remarks towards the Chairman and management of KMG Milk Food. The board has authorized its legal team to issue a formal notice, file for eviction, and pursue all available remedies if the lessee does not vacate within 30 days. KMG Milk Food has 67% promoter holding and 33% public shareholding, which the board cited as reason to protect public funds and shareholder interests.
In the short term, the plant remains occupied and possibly deteriorating, which could affect future production or rental income. If legal action escalates, it may involve litigation costs and uncertainty around asset recovery, but the 30-day window provides a chance for an amicable resolution before courts get involved.