SC notice to rice mill owners in Bihar over default in payments

The Supreme Court on Thursday sought response from rice mill owners in Bihar who have defaulted in payment of more than Rs 450 crore to the state exchequer.

A bench of Justice U U Lalit and Justice Vineet Saran issued notices to 567 accused mill owners who had entered into agreement with the Bihar State Food and Civil Supply Corporation in the year 2011-12 to receive paddy from it.

The apex court also said that the notice shall be published in three widely circulated newspapers in Bihar which shall include one English and two vernacular newspapers.

Additional Standing Counsel for Bihar, advocate Keshav Mohan, submitted before the apex court that if the accused mill owners do not furnish bank guarantee of the defalcated amount which is more than Rs 450 crore, there shall be a huge loss to the public exchequer.

He submitted that unlike the provisions in 2012-13 and 2013-14, there is no stipulation in the agreement pertaining to year 2011-12 for furnishing bank guarantee to secure the interest of the state.

The matter will now come up for further consideration on April 27.

According to the agreement, the mill owners had to return custom milled rice to the State Food and Civil Supply Corporation at the end of every milling season but majority of the millers did not do so and went for sale in open market.