Maharashtra cracks down on 31 defaulting sugar co-ops
The Maharashtra government has taken action against 31 sugar cooperatives that defaulted on Rs 4,355 crore in loans. Linked to political leaders, these cooperatives missed two repayments. The state warned of dissolving boards and attaching directors’ properties if dues aren’t cleared in a month. Already, Rs 79 crore in interest has been paid by the state to banks.
The Maharashtra government has cracked down on 31 sugar cooperatives that defaulted on margin money loan repayments worth Rs 4,355 crore, media reports say.
These loans, distributed ahead of the 2024 and 2025 elections, were linked to cooperatives run by prominent political leaders. The cooperatives failed to repay even the first two instalments, prompting the state to warn of strict action.
If dues aren’t cleared within a month, the boards will be dissolved, and directors’ personal properties attached. The state has already paid Rs 79 crore in interest to banks on behalf of these defaulting units.
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Source : Indian Cooperative
