Allahabad HC upholds cane arrear recovery
Allahabad HC uphelds issuance of recovery certificates against sugar mills who have not cleared their cane price arrears.
By NIDHI SHARMA, TNN |
MUMBAI: The Allahabad High Court on Tuesday upheld the issuance of recovery certificates (RC) against sugar mills which have not cleared their cane price arrears. The court has also asked the government sugar factories to pay their arrears by November 15.
Around Rs 1,100 crore of cane price arrears is due from private and government sugar mills. Unconfirmed reports say the district administration has initiated its action and closed down the godowns of some factories, following the court ruling.
Earlier in September, the Lucknow bench of Allahabad High Court had passed an order stating that all the mills should clear their cane price arrears within three weeks. The cane commissioner was directed to initiate recovery proceedings. The state was also asked to file a compliance report by October 23.
Not surprisingly, sugar mills had challenged the order before the higher Allahabad bench of the High Court UP sugarcane commissioner Kamran Rizvi said the adminstration has issued recovery certificates against 46 sugar factories on the directives of the High court. “The High Court has upheld the issuance of RC’s and has not granted a stay,” Mr Rizvi said.
Earlier the sugar cane commissioner had issued 18 RC’s before September 25, and remaining 46 were issued between October 17-18. There are around 12 mills that have already cleared their 100% cane arrears while there are seven mills that have legal impediments, so that no RCs could be issued against these mills. Some of the big sugar mills against whom RC’s has been issued include Bajaj Hindustan, Balrampur Chini, Triveni Engineering, K K Birla, DSCL.
The High Court has further asked the mills to file a writ petition before the bench of the High Court that has appropriate jurisdiction, said a high state official. At a meeting of state officials and the industry representatives, sugar millers were asked not to delay the crushing and start it as per their previous year’s date.
UP produced around 85 lakh tonnes of sugar in 2006-07 against 57.84 lakh tonnes the previous year. With high production, prices crashed increasing the production costs that led to cane price arrears. Sugar price in Muzaffarnagar of the state were around Rs 16-17 per kg during this time last year that are down to Rs 13-Rs 14 per kg currently.
Around Rs 1,100 crore of cane price arrears is due from private and government sugar mills. Unconfirmed reports say the district administration has initiated its action and closed down the godowns of some factories, following the court ruling.
Earlier in September, the Lucknow bench of Allahabad High Court had passed an order stating that all the mills should clear their cane price arrears within three weeks. The cane commissioner was directed to initiate recovery proceedings. The state was also asked to file a compliance report by October 23.
Not surprisingly, sugar mills had challenged the order before the higher Allahabad bench of the High Court UP sugarcane commissioner Kamran Rizvi said the adminstration has issued recovery certificates against 46 sugar factories on the directives of the High court. “The High Court has upheld the issuance of RC’s and has not granted a stay,” Mr Rizvi said.
Earlier the sugar cane commissioner had issued 18 RC’s before September 25, and remaining 46 were issued between October 17-18. There are around 12 mills that have already cleared their 100% cane arrears while there are seven mills that have legal impediments, so that no RCs could be issued against these mills. Some of the big sugar mills against whom RC’s has been issued include Bajaj Hindustan, Balrampur Chini, Triveni Engineering, K K Birla, DSCL.
The High Court has further asked the mills to file a writ petition before the bench of the High Court that has appropriate jurisdiction, said a high state official. At a meeting of state officials and the industry representatives, sugar millers were asked not to delay the crushing and start it as per their previous year’s date.
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UP produced around 85 lakh tonnes of sugar in 2006-07 against 57.84 lakh tonnes the previous year. With high production, prices crashed increasing the production costs that led to cane price arrears. Sugar price in Muzaffarnagar of the state were around Rs 16-17 per kg during this time last year that are down to Rs 13-Rs 14 per kg currently.
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