The Punjab and Haryana High Court Thursday stayed the Punjab government’s recovery notices running into crores of rupees issued to three private sugar mills, for making Rs 50 per quintal payment to sugarcane growers, which, as per the sugar mill owners, was to be paid by the state government.
The order came from the court headed by Justice Rakesh Kumar Jain on petitions moved by Bhagwanpura Sugar Mills of Sangrur, AB Sugars Limited of Hoshiarpur and M/s Rana Sugars Limited owned by Congress MLA Rana Gurjit Singh.
The court, while issuing notices to the Punjab government, sought a reply by October 17.
Orders with regard to Chadha Sugars and Industries Pvt Ltd. of Gurdaspur and M/s Wahid Sandhar Sugars Ltd. of Kapurthala have already been stayed by the court earlier. The court made it clear that in case the industry and godown of private sugar mills have already been locked, the government authorities shall open the locks immediately.
The sugar mills have submitted that the Punjab Cane Commissioner had informed the mills that the state government had decided that all seven private sugar mills of Punjab shall disburse the cane price at the rate Rs 245 per quintal to the cane growers for the season 2015- 2016 (present season) and the balance agreed price of Rs 50 per quintal shall be disbursed either by the state or the central government.