Lokayukta to probe 'scam' in sugarmills' sale during BSP rule

"Now Lokayukta will probe into sale of sugarmills in the state," Chief Minister Akhilesh Yadav told reporters after a meeting of the state cabinet which took the decision.

As per the decision, Lokayukta N K Mehrotra would probe into alleged irregularities into sale of running units at Amroha, Bijnor, Bulandshahr, Chandpur, Jarwalroad, Khadda, Rohanakalan, Sakhauti Tanda, Saharanpur and Siswan Bazar.

The Lokayukta would also probe sale of closed mills at Baitalpur, Bhatani, Deoria, Shahganj, Bareilly, Laxmiganj, Ramkola, Chatauni, Hardoi, Barabanki and Ghugli.

As per a CAG report, a loss of Rs 1179.84 crore to the state government has been estimated due to alleged irregularities, like low evaluation of land and building, in the sale of sugar mills.

The decision to disinvest these sugarmills was taken during Mayawati regime through an order dated June 4, 2007.

It was alleged that lower evaluation was done by giving additional rebate on land and building, besides plant and machinery was evaluated at scarp rate. It was also alleged that required stamp duty was not charged.

Besides, it was alleged that competition was lacking and bidders were linked with each other and bids were kept alive at 50 per cent of the estimated price.

It was alleged that even before the financial bids opened, the bidders knew the expected price and the process to open bids was changed.

Core group of secretaries on disinvestment failed to do proper evaluation of the land and building and more attention was paid on discounted cash flow method, it was alleged.