₹250 crore Mandvi sugar mill allegedly auctioned off for ₹37 crore to private company
Updated: Sep 23rd, 2024
The Mandvi Cooperative Sugar Mill in Surat has been handed over to a private company. The total value of the cooperative sugar mill’s plant, machinery, 100 acres of land, and other assets, is estimated to be around ₹250 crore. However, it has been sold to a private company from Maharashtra for only ₹37 crore.
Suspicions of corruption in this matter have arisen, prompting the Gujarat Congress to demand a CBI investigation into the entire incident.
The Gujarat Congress has raised concerns, claiming that despite legal provisions, the Mandvi Cooperative Sugar Mill was auctioned off. They argue that the auction disregards the rights of the mill’s 50,000 members, whose dues of 26 crores have been unpaid. Additionally, the government is owed ₹5 crores.
The bank is directly involved in the auction process, and there’s resistance from the local community against selling the entire mill to a private company.
There is also a requirement that any company interested in buying a sugar mill must have an Industrial Entrepreneur Memorandum (IEM) licence. However, the private company from Maharashtra that purchased the mill does not have this licence, violating the rules.
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