Bajaj Hindusthan moves SC against UP govt decision

Shishir Bajaj-owned sugar producer Bajaj Hindusthan has approached the Supreme Court, challenging the decision of the Uttar Pradesh government to allot two sugarcane purchase centres to its rival, Dwarikesh Sugar Industries.

Bajaj Hindusthan also challenged the order of the Allahabad High Court, which declined to stay the order of the state government and referred the allotment of the centres back to the cane commissioner, directing it to re-consider its decision.

The sugar manufacturer said the high court had erred in sending the matter back to the state government despite observing that the cane commissioner allotted the two centres — Chakwali and Jagrauli — to Dwarikesh Industries without making equitable balance between the two sugar producers.

The matter was listed before a bench comprising Justice G S Singhvi and Justice B S Chauhan. However, it was adjourned and would be listed again on Wednesday for hearing.

The state government had on December 18, 2009, allotted two cane centres — Chakwali and Jagrauli — of Bajaj Hindusthan to Dwarikesh Sugar on the ground that the allotment was not in accordance with the estimated cane requirements fixed by the cane commissioner.

In its petition, Bajaj Hindusthan submitted that cane purchasing work was going on in these centres for the last two months. It also said the harvesting season was coming to an end and ultimately farmers were going to be harassed in such transfer of purchasing centres.

The state government allots cane purchasing centres to individual mills, thereby enabling sugar producers to buy sugarcane within the notified area of the centres.

The Lucknow Bench of Allahabad High Court had, in its order dated January 8, 2010, said the sugarcane requirement of Bajaj Hindusthan was higher at 8.1 million quintals, compared to Dwarikesh’s 6.78 million quintals. But, the UP government had made available 10,204 hectares to Bajaj Hindusthan, whereas for Dwarikesh it was 17,477 hectares.

“The comparative chart shows that the availability of cane for Bajaj Hindusthan is 5.58 million quintals, whereas for Dwarikesh it is 9.56 million quintals. The availability of cane for Bajaj Hindusthan’s mill has been shown 8.1 million quintals, whereas for the Dwarikesh’s mill it has been shown 13.87 million quintals,” the high court had said.

The court further said the cane commissioner “has failed to make equitable balance between sugar mills” and it requires reconsideration.