Allahabad High Court flags Rs 1,936 crore pending sugarcane dues
The Allahabad High Court’s Lucknow bench flagged around ₹1,936 crore in outstanding sugarcane farmers’ dues under recovery certificates and questioned incorrect 12% interest rates instead of 15%, potentially affecting ₹170 crore. It directed district magistrates to expedite recovery and sought explanations from former cane commissioners. The matter will be heard October 15.
Lucknow: The Lucknow bench of the Allahabad High Court took a serious view of the non-recovery of sugarcane farmers’ dues and unpaid interest on delayed payments, noting that around Rs 1,936 crore remained outstanding under various recovery certificates (RCs). A bench of Justice Rajan Roy and Justice Manjive Shukla passed the order on a public interest litigation filed by Kisan Mazdoor Sangathan convener VM Singh, The Times of India reported.
The court directed all district magistrates to make efforts to recover the amount payable to farmers on the basis of the revised recovery certificates. It also found that recovery certificates issued in certain cases mentioned an interest rate of 12 per cent instead of the applicable 15 per cent rate, a discrepancy that could potentially affect recovery of an additional Rs 170 crore.
Taking note of the issue, the bench made four former cane commissioners parties to the proceedings and issued notices seeking their replies on why RCs carrying the lower interest rate were issued despite a High Court judgment dated December 23, 2021. The former officials have also been asked to explain why contempt proceedings should not be initiated against them.
The bench further directed the cane commissioner to inform the court within what period the outstanding dues were likely to be recovered. It sought clarification on whether interest on the dues would be calculated from the date the principal amount became payable until actual payment, or only up to the date of issuance of the recovery certificate.
The matter is next scheduled to be heard on October 15.
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Source : ChiniMandi
