Observing that it is not afraid of laying down guidelines for issuance of licences to cooperative sugar factories, the Bombay High Court has asked the government to provide data on sick factories in Maharashtra. The division bench of Justices B H Marlapalle and U D Salvi was hearing the PIL filed by Ashok Kulkarni, an expert on the cooperative sector.
Kulkarni”s peition alleges that state is losing hundreds of crores of rupees in subsidies and soft loans which are provided to the coperative factories, due to mismanagement. Licences are issued for starting factories in the areas where enough sugarcane is not available, the PIL says.
The division bench endorsed this view. “We agree.
One example is Priyadarshini Sahkari Karkhana at Udgir. For the last two crushing seasons, it has not worked,” said Justice Marlapalle.
Additional Government Pleader Sudeep Nargolkar said that government has devised schemes to revive sick factories, which included take-over a closed unit by neighbouring cooperative factory. “Why don”t you hand over them to private sugar factories?” the bench asked.
“That will be a better option.” Nargolkar said that court may lay down guidelines or a policy about issuance of licenses to new factories and sought information on sick units.
“We will do that, we are not afraid of doing that, but first give us district-wise information (about sick factories),” the High Court said. “All said and done, this (government”s revival schemes) has not worked.
Basic reason is mismanagement,” the judges said. “Give us entire statistics on sick factories, along with reasons for sickness,” High Court said.
The information is to be provided within two weeks. Advocate R D Soni, who is an amicus curie (court”s friend) in this case, said that in many cases, factories go into liquidation because of deliberate mismanagement, and later “same people buy them at cheap rate in auction under different names”.
Once factory is declared a sick unit, the loans given by state or the district cooperative banks get waived, he said
Courtsey:PTI