Take over defaulting pvt sugar mill: PMK

Ramadoss, in a statement, said, “In the name of sugarcane farmers, the private sugar company had obtained loans to the tune of Rs 450 crore for its sugar mills functioning in Thanjavur and Cuddalore districts. As the company could not repay the obtained loan and cheated the farmers, state government should take over the company.”

Thiru Arooran firm had four sugar mills, functioning in the name of Thiru Arooran and Ambika sugar mills in Thirumandangkudi and Kottur villages in Thanjavur district and Irayur and A Sithur village in Cuddalore district. For over two years, the sugar mills failed to repay the procurement amount of over Rs 125 crore to farmers and to repay them, the company obtained signatures and obtained Rs 360 crore from various banks in Thanjavur district and Rs 90 crore from banks in Cuddalore district.

Ramadoss said that farmers were pushed to a worst state as they did not get the price for their sugarcane and now, they are forced to pay the debt obtained in their name by the mills.

He also said that the fraud could not have happened without the support of bank officials and so the officials of State Bank of India, Corporation Bank and Bank of Baroda should also be investigated in this regard.