No permisson to new sugar factories

Mumbai, Sep 27 (UNI) The Bombay High Court today made it clear that its order, restraining state government from issuing permission to any new co-operative sugar factory in the state, would not be withdrawn until the state determines how much money has gone down the drain under the guise of packages to co-operative sugar factories and undertakings to recover the same.

Acting on a public interest litigation filed by Ashok Kulkarni from Pune, the court restrained the state government from giving permission to any new sugar factory.

The petitioner has raised issues of corruption in the co-operative sugar factories and has contended that roughly 30-40 thousand crore rupees have been lost from the public exchaequer under the guise of various packages to co-operative sugar factories.

Baramati Agro, a company intending to set up a private sugar factory, has moved the court seeking its nod to their factory saying that the private sugar factories do not get anything from the state by way of funds or subsidies.

While hearing the company's plea, a division bench comprising Justices J N Patel and Amjad Sayyad observed that, the money extended to co-operative sugar factories has been given from public exchequer and unless the state government determines the loss caused to the public exchequer and undertakes to recover the same, the earlier order, restraining state from issuing permissions to any new co-operative sugar factories in the state, would not be withdrawn.

Commenting that the earlier affidavit filed by the state in reply to the petition was too short and vague, the court also directed the state to file comprehensive affidavit covering all aspects in the petition.

UNI