Stop sugar cooperatives8217; payment: HC

The Maharashtra Rajya Sahakari Sakhar Karkhana Sangh, which intervened in the matter, has been directed by the State to formulate a policy for the disbursement of funds and furnish the details within two weeks. The State Government has been given two weeks to decide on the policy after it is finalised by the Sangh.

The judges were hearing two petitions filed by the Mohanrao Shinde Cooperative Sugar Factory and the Kagal Shetkari Cooperative Sugar factory which alleged that the State Government had failed to disburse funds towards share capital in its cooperatives.

The Mohanrao Shinde cooperative in Miraj was set up in 1990 and has a crushing capacity of 3,500 metric tonnes per day,covering 90 villages in the area.

Arguing on behalf of the Shinde cooperative, advocate Ashutosh Kumbhakoni said the cooperative, which was given a letter of intent in 1990 had already bought 316 acres of land, expecting the State Government8217;s share to come through. On a share capital of Rs 18 crore, the State Government owes the Mohanrao Shinde cooperative, around Rs 15 crore. The share of the members in the cooperative, amounting to around Rs 3 crore, has already been collected by the members. The matter refers to the state of affairs in the sugar cooperative sector where it is alleged that relatives of ministers in the State Government who are starting cooperatives are getting the funds, though this too is paltry.

The 175-member Maharashtra Rajya Sahakari Sakhar Karkhana Sangh argued that the member companies under the Sangh had received only a few lakhs of rupees from the State Government which could not help the factories be set up. Due to the delay on the part of the State to disburse funds, most ofthe cooperatives are declared sick even before they can take off.