Nowhere is this more evident than in the MSCB statement which shows the names of sold out cooperative sugar mills (sahakari sakhar kharkhanas or SSKs) under the Securitization Act, 2002, as on January 31, 2011.
The National bank for agriculture and rural development (NABARD) report, which exposed the poor health of Maharashtra State Cooperative Bank (MSCB), prompting the Reserve Bank of India (RBI) to sack the board of directors, has also highlighted the top management’s sloppy functioning.
Nowhere is this more evident than in the MSCB statement which shows the names of sold out cooperative sugar mills (sahakari sakhar kharkhanas or SSKs) under the Securitization Act, 2002, as on January 31, 2011.
The statement, a copy of which is in the possession of DNA, shows at least seven mills which have been sold for amounts substantially below the base reserve price.
The most glaring examples being the case of the Balaghat sugar mill, under the Nanded regional office of the bank, which was hawked off for as little as Rs50 lakh against its reserve price of Rs23 crore.
Likewise, the Gangapur sugar mill under the Aurangabad regional office was sold for Rs7.25 crore against a reserve price of Rs27.25 crore.
On the related subject of defaulting sick sugar mills, Nabard indicts the MSCB for inordinate delays (as long as eight years) in selling properties of sick mills to make good their losses.
According to the report, a whopping Rs1,450.85 crore is due from as many as 27 sugar mills.
Shriram sugar mill, with an outstanding of Rs61.98 crore, was first served a notice in February 2005 and has not yet been sold by the MSCB. Likewise, Bageshwari sugar mill, which owes the MSCB Rs83.98 crore and was served a notice in July 2005, has still not been sold by the bank. There are 27 other similar cases.
Twenty-three defaulting sugar mills collectively owe the MSCB Rs849 crore, but the bank has not taken possession of them for sale.
The list of defaulting sugar mills which have not yet been sold by MSCB are Shriram (owes Rs61.98 crore), Shivshakti (Rs73.86 crore), Bageshwari (Rs83.98 crore), Panjrakan (Rs49.81 crore), Dafale (Rs55.67 crore) and Balaghat (Rs135.66 crore).
The list of some defaulting mills possession of which has not been taken by MSCB are Jai Kisan (owes Rs131.13 crore), Sudhakarrao Naik (Rs129.89 crore), Parner Taluka (Rs69.83 crore), Jalna Vibhag (Rs111.54 crore), Kolhapur Zilla (Rs75.47 crore) and Ichalkaranji (Rs39.87 crore).
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