NEW DELHI, OCT 1: In a new twist to the Rs 200-crore dhoti sari scam, the Association of Corporations and Apex Societies of Handlooms (ACASH) yesterday moved Delhi High Court against the Bihar Government's decision to withdraw the advance of Rs 40 crore it had furnished at the time of signing the contract with the former.Admitting the petition, Justice Vijender Jain stayed the operation of the State Government order till November 6 and issued notices to the State which are returnable on the same date.In its 28-page petition, ACASH has challenged the order on the ground that ``no compelling circumstances have arisen which justifies recourse to this drastic measure. On the contrary, the States's gross disregard for the spirit of the contract in as much the state has not cared to make payments due to ACASH has made ACASH and other millions of weavers suffer irreparable damages.'' The Bihar Government, in its order dated September 23, had revoked the advance of Rs 40 crore it had given to ACASH for a total order of Rs 200 crore.The reasons listed in the order for taking such a step included test reports which showed that the clothes were produced on powerloom and not on handloom, the failure of ACASH to disburse interest-free advance to handloom organisations leading to delay in supplies, and the use of services of middlemen and private parties for completing the supplies.``The order is prejudicial to ACASH as also other poor weavers of the country whose interest ACASH represents,'' the petition states, adding that ACASH had already moved a similar petition before Secretary Textiles Prabhat Kumar, who, according to the contract, is the final arbitrator in case of any dispute.In its defence, ACASH has contended that the tests - showing that the clothes were produced on powerloom and not on handloom as specified in the contract - were open to debate and were in any case carried out by the Bihar Government without its knowledge.``It is unthinkable that goods which have not only been accepted by the receiving agency and for which payment has also been made and a part of which has been supplied to the consumers are now being declared as not meeting the quality parameters. If this is to be accepted then the blame would lie on the part of the Bihar Government'' ACASH has stated in its petition.The controversy between the State and ACASH surfaced in July this year when the former alleged that ACASH was supplying clothes produced on cheaper powerloom units and not on handloom.
