2 hrs ago
Allahabad High Court presses Uttar Pradesh over sugarcane dues
The Allahabad High Court is concerned that sugarcane farmers in Uttar Pradesh have not received all the money owed to them.
About Rs 1,936 crore is still waiting to be recovered.
This includes the original unpaid amount and interest for late payments.
The court said interest should be calculated at 15% in the relevant cases.
Some recovery certificates reportedly used a lower rate of 12%.
Four former cane commissioners must explain why those certificates were issued.
The court told district magistrates to make every possible effort to recover the money.
Officials must provide more information about the unpaid dues at the next hearing.
The case will be heard again on October 15.
About Rs 1,936 crore in sugarcane farmers’ dues remains unrecovered under various recovery certificates.
The pending amount includes approximately Rs 1,087 crore in principal and Rs 849.52 crore in interest.
The court said some certificates used 12% interest instead of the applicable 15%, potentially affecting another Rs 170 crore.
Four former cane commissioners were made personally parties and asked why contempt proceedings should not begin against them.
District magistrates and the cane commissioner were directed to pursue recovery and submit updated, possibly mill-wise, details by October 15.
- Who
- The Lucknow bench of the Allahabad High Court, Uttar Pradesh district magistrates, the cane commissioner, four former cane commissioners, and sugarcane farmers.
- What
- The court ordered efforts to recover about Rs 1,936 crore in unpaid sugarcane dues and sought explanations over allegedly incorrect interest calculations.
- Where
- The Lucknow bench of the Allahabad High Court is considering dues owed to farmers across Uttar Pradesh.
- When
- The order was passed on August 31; the next hearing is scheduled for October 15.
- Why
- The court acted because substantial principal and interest remained unrecovered, including amounts potentially affected by recovery certificates using 12% rather than 15% interest.
Key facts
- Total pending dues
- Around Rs 1,936 crore, including principal and interest, remains under various recovery certificates.
- Principal amount
- About Rs 4,405 crore was listed as the principal amount; approximately Rs 3,318.50 crore has been recovered.
- Pending principal
- Approximately Rs 1,087 crore remains outstanding toward principal.
- Interest outstanding
- Interest at 15% was estimated at around Rs 849.52 crore, with no recovery made toward that amount so far.
- Potential additional shortfall
- Recovery certificates using 12% instead of 15% interest could result in non-recovery of around Rs 170 crore.
- Delayed 2023-24 payments
- Of around Rs 35,893 crore payable under the state advised price, approximately Rs 18,391 crore was paid after the statutory 14-day period.
- Next hearing
- The matter is scheduled to return to court on October 15.
Sources
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