The Kerala High Court on Wednesday, 4 November 2026, dealt a significant legal blow to the Pinarayi Vijayan-led Kerala government by quashing its order dissolving the elected board of directors of the Milma Thiruvananthapuram Regional Co-operative Milk Producers' Union and directing its immediate reinstatement. The Division Bench declared the 25 July order issued by the Director of Dairy Development illegal, overturning the appointment of an administrative committee in place of the elected board.

What the Court Ruled

The Division Bench, comprising Justice Dr A.K. Jayasankaran Nambiar and Justice A.K. Preetha, allowed an appeal filed by the Union President and other office-bearers, reversing an earlier single-judge verdict that had declined to interfere with the government's decision. The court held that dissolving the elected board and replacing it with an administrative committee was legally untenable.

The original government order had cited alleged irregularities, including those relating to the supply of ghee to the Sabarimala temple, as the basis for disbanding the elected body.

The Sabarimala Ghee Controversy

The dissolution came in the wake of allegations of irregularities in the distribution of ghee to the Sabarimala shrine — a politically and religiously sensitive matter in Kerala. The Kerala Co-operative Milk Marketing Federation (Milma) had, however, mounted a strong public defence of its operations. On 3 August, Milma maintained that there was no lapse in its supply and that only premium-quality ghee meeting prescribed standards was dispatched.

Milma Chairman K.S. Mani had stated that the ghee underwent stringent quality checks before dispatch and was packed in fully sealed 15-kg tins, ruling out the possibility of tampering during transit. Mani had also noted that Milma received no official communication from the Devaswom authorities about any quality complaints and had received full payment for the supply. He further said that any replacement of Milma ghee with substandard products after delivery would amount to a serious offence, and those responsible should face legal action.

Legal and Administrative Context

The case traversed two judicial tiers before the Division Bench's ruling. The office-bearers first challenged the dissolution before a single judge, who dismissed their petition and allowed the government action to stand. The appellants subsequently escalated the matter to the Division Bench, which has now overturned both the government order and the single-judge verdict.

Notably, the government's move to dissolve an elected cooperative board — citing alleged operational irregularities — has drawn scrutiny as an exercise of executive authority over democratically constituted cooperative structures. Critics argue that such interventions risk undermining the autonomy of elected cooperative bodies.

What Happens Next

With the Division Bench verdict in force, the elected board of the Milma Thiruvananthapuram Regional Union must be restored immediately. The government may choose to challenge the ruling before a larger bench or the Supreme Court. The verdict is likely to have wider implications for how state governments interact with elected cooperative boards across Kerala, where the cooperative dairy sector is both economically significant and politically sensitive.