Not so sweet: Uttar Pradesh cane dues at Rs 5,500 crore

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Published: September 24, 2019 2:11:19 AM

Apart from these, Bajaj group, which is the largest group and has 14 sugar mills in the state, has a paid percentage of 54.81% and its dues run into a whopping Rs 22,550.50 crore, which is almost 44% of the total cane dues of UP.

Once the sugar is sold, mills are supposed to part with 85% of the proceeds to clear their cane duesOnce the sugar is sold, mills are supposed to part with 85% of the proceeds to clear their cane dues

With more than Rs 5,500 crore cane dues still pending, the Uttar Pradesh government has lodged FIRs against three errant mills — Modi, Simbhaoli and Yadu groups — which have been faltering on cane payments.

Speaking to FE, UP cane commissioner and Principal Secretary, Cane Development, Sanjay Bhoosreddy said the FIRs under Section 3/7 of Essential Commodities Act and relevant sections of CrPC have been lodged against the owners of these mills — Umesh Modi of Modinagar group, Simran Kaur Mann of Simbhaoli group and Kunal Yadav of Yadu group.

“They would be arrested soon,” he said, adding that recovery certificates (RCs) will also be issued against those sugar mills that are still having huge amounts of balance cane dues.

“These three sugar mills have huge arrears against them and their payment is very slow despite repeated warnings. As per the tagging order, once the sugar is sold, mills are supposed to part with 85% of the proceeds to clear their cane dues. In the case of these mills, it was found that they were diverting the money from sugar sales to other heads and were not paying the farmers their dues,” he said.

One can understand the extent of diversion by the fact that while the Yadu group had paid a measly 18.90% of its total cane dues till September 20, Modi group has paid 47% and Simbhaoli has paid 33.62% of its total cane dues,” he said. Interestingly, Modi group, having 2 sugar mills, has unpaid cane dues of Rs 2,742.78 crore, while Simbaoli group, having three sugar mills has dues of Rs 2,810.46 crore while Yadu group, which has 2 mills, has cane dues of Rs 384 crore.

Apart from these, Bajaj group, which is the largest group and has 14 sugar mills in the state, has a paid percentage of 54.81% and its dues run into a whopping Rs 22,550.50 crore, which is almost 44% of the total cane dues of UP.

Stating that the government is committed to ensuring cane price payments to sugarcane farmers on a priority basis, UP cane minister, Suresh Rana said all efforts will be made to get the payment of balance cane dues paid at the earliest. “Strict action against defaulter sugar mills,” he said, adding that due to the state government’s efforts since coming to power, Rs 73,661 crore have been paid to cane farmers, which is a record of sorts.

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