Kozhikode: A test audit conducted by the cooperative society has uncovered stock irregularities and rule violations amounting to lakhs of rupees within the Milma Malabar Union. The audit revealed that widespread manipulation of sales figures occurred because a private contractor was granted full authority over Milma's marketing software.

The most serious irregularities were uncovered at the Milma Malappuram Depot. The audit further indicates that bills were massively cancelled without scrutiny, gate passes were manipulated, and even after these issues were identified, modifications to bills continued to be made using the same user ID.

An examination of the Malappuram Depot's accounts for February 28, 2026, revealed that milk sales on that day were recorded as nearly double the monthly average. While only 70,000 packets of fresh milk arrived that day, records indicate a sale of 166,000 packets. Furthermore, the audit discovered that a single agent was supplied with 95,100 packets of milk on one day alone, and was granted credit throughout the year, far exceeding their security deposit. Suspicion also surrounds large sums of money credited and then cancelled on the same day in this agent's name.

Although the contract had expired on December 31, 2025, it was renewed for the same contractor in February 2026 without issuing a new tender. A deficit of products, including ghee, worth Rs 84.46 lakh was also identified.

The report also suggests that documents were tampered with to cover up this shortage. The audit department has recommended a detailed investigation and the submission of a special report.