State government issues Rs 1,223 co-op loan defaults against Congress, NCP

With barely any months left for the next general elections, Congress and NCP are beginning to face the wrath by the ruling party. Apparently, BJP has been making loan deficits against the opposition party by targeting the private sugar factories, spinning mills and cooperatives that are under them. Measures to recover Rs 1,223 crore have already begun by the state government from 11 factories and spinning mills.

Most of the mills and factories have taken loan from the District Central Cooperative Bank (DCCB) located in Nashik, Wardha, Buldhana, Solapur and Osmanabad. As per a report in Mumbai Mirror, the DCCB’s from these districts are facing liquidity problems “due to default on loans taken by these sugar and spinning mills.”

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The State Finance Minister Sudhir Mungantiwar has also asked the cooperative department to list down the loans taken by these institutions and the amount that has been re-paid until now. A senior official revealed, “To avoid repayment of loan, some of these cooperative sugar mills won’t accept last instalment of grant due to them from the government. Because one of the conditions in the MoU these sugar cooperatives sign with the government is that the loan recovery won’t start unless the entire grant is paid by the government.”

Former NCP MLA members like Deepak Solankhe, Suresh Deshmukh and former leader Padma Sinh Patil not only own the mills but owe a huge sum of money to the bank. Given that the cooperative sector gives around 33 per cent of the capital cost, the state government is keen to encourage sugar production in these sectors.

Chief spokesperson of NCP, Nawab Malik reveals, “If the state government wants to bring a white paper, it should go ahead with it. If it wants to take action against defaulting sugar mills, please go ahead, but don’t issue threats. We are not afraid of such threats.” That’s not all. He goes on to add, “The timing behind the government‘s action looks suspicious. This government was in power for four years, why suddenly action in an election year?”

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