Sugar mill land seized over unpaid dues auctioned in Bareily, proceeds to go to farmers

BAREILLY: Agricultural land attached from debt-ridden Kesar Sugar Mill in Bareilly around six months ago was auctioned recently, fetching the highest bid of Rs 28.05 crore. Officials said the proceeds would be used to clear pending dues owed to farmers.

Joint magistrate and SDM Baheri Ishita Kishore told TOI, “The auction that took place on Friday was part of strict action taken against the defaulting sugar mill despite repeated warnings that it should not procure cane if it was unable to make payments. The action has been taken under the Revenue Recovery Rules. A committee was constituted to determine the value of the land.”

She added, “Earlier too, an FIR was lodged against the mill for non-payment. Its cane procurement area was reduced by one-third, and the crushing capacity was allotted to another sugar mill.”

The auction was conducted through an open-bid process by the designated auction officer and tehsildar in the presence of the additional district magistrate (finance and revenue), Baheri SDM, district sugarcane officer, circle officer and representatives of farmer unions.

Kishore said, “The sugar mill defaulted on payments for 11 days of cane procurement, amounting to around Rs 17.6 crore. Existing dues were approximately Rs 142 crore, taking the total outstanding amount to nearly Rs 160 crore.”

“We want to send a clear message to defaulters that farmers’ dues cannot be siphoned off. The administration is committed to ensuring that every farmer receives his hard-earned money,” she added.