HC sets aside ₹2000 waiver to sugar mills

first_imgThe Allahabad High Court on Thursday set aside the Uttar Pradesh government’s order in which it had waived about ₹2000 crore of interest amount which the sugar mills owed to farmers due to delayed payment of cane arrears. The court order came in response to a petition filed by farmer-activist V.M. Singh challenging the waiver of interest amount which the mill owners were supposed to pay to the farmers for the years 2012-13, 2013-14 and 2014-15.Sugar mill owners are supposed to pay interest on cane arrears to the farmers in case of delay in payment.The interest amount for 2012-13 and 2013-14 of over ₹1,300 crore was waived by the State government on May 22, 2015, by accepting the request of mill owners that they were not in a position to pay interest for delay in payment of cane price to the farmers as they incurred losses allegedly due to reduction in the price of sugar. The State government, through an order in Oct. 2016, further waived over ₹700 crore for interest payment.last_img

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