Govt Cracks Whip On Sugar Co-Ops
The Maharashtra government has instructed the co-operative department to initiate recovery proceedings against 19 co-operative sugar factories that defaulted on their loans to IDBI and IFCI, prompting the latter to invoke state government guarantees backing these loans.
In a damage control exercise, the state government has taken recourse to a notification issued in the last fiscal aimed at taking stern action against defaulting co-operative sugar factories in the state in order to recover dues owed to financial institutions (FIs) where the government had stood as a guarantor.
A senior government official told Business Standard: