Mumbai: The Sharad Pawar-led ministry of food and public distribution on Monday served showcause notices to 252 cooperative sugar factories , including 100 from Maharashtra, for blatant violation of the Essential Commodities Act.
Following a complaint by AICC member Kanhaiyalal Gidwani, the department had initiated a high-level probe into the disposal of buffer stock sugar. It was found that 252 cooperative sugar factories had not sold the dismantled buffer stock of 20 lakh metric tonne. All the errant cooperative sugar factories are directly or indirectly controlled by Congress and NCP leaders. "The entire country witnessed a steep hike in sugar prices following failure of the cooperative sugar factories to dismantle the buffer stock,'' Gidwani said.
In his two-page showcause notice, chief sugar director R P Bhagria, has stated that a decision by the Centre on July 15, 2008, had allowed the sale of dismantled buffer stock of 20 lakh MT in the domestic market, without the requirement of release orders from the Directorate of Sugar. Then it was directed that 25% of the buffer stock will be released from August to September and the remaining at any point of time next year. Besides, they were asked to submit the returns for the months of May, June and July.
Since most of the factories have blatantly violated the orders, the Centre has invoked the provisions of the Essential Commodities Act. "We hope that the Centre will take the cases against errant factories to its logical end,'' Gidwani said. (The Times of India)
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