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This is an archive article published on December 11, 2002

Central Excise to investigate sugar units in last 5 years

The Central Excise has ordered a high-level probe into the multi-crore sugar export scandal. ‘‘Investigations in all sugar units h...

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The Central Excise has ordered a high-level probe into the multi-crore sugar export scandal. ‘‘Investigations in all sugar units have been ordered for five years with priority being given from January 2000 onwards. A report would follow the investigation,’’ S.S. Bedi, Chief Commissioner of Central Excise and Customs, told Shiv Sena leader Kanhaiyalal Gidwani.

Gidwani had taken up the sugar export scandal with Chief Minister Vilasrao Deshmukh, who holds the Cooperation portfolio, as well as Union Finance Minister Jaswant Singh and Minister of State for Finance Anand Adsul.

Gidwani’s contention was that a section of the units controlled by leading politicians had grossly misused the export quota allotted to them. Instead of exporting the sugar, these units sold the sugar in the local market. As a result, there was loss of excise duty to the extent of Rs 50 crore.

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Subsequently, simultaneous probes were conducted by the state Cooperation department as well as the Central Excise into the charges made by Gidwani.

While the Central Excise completed its preliminary probe against the errant sugar units and issued notices for recovery of outstanding excise dues, the Cooperation department is yet to initiate disciplinary proceedings.

Following penal proceedings by Central Excise, at least half a dozen units have paid excise duty. ‘‘I have been informed by the Central Excise that it has initiated proceedings against 21 units. Probe against the remaining units will be completed in a time-bound period,’’ Gidwani said.

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