The Union Ministry of Food and Public Distribution has sent a missive to the Maharashtra government to initiate criminal proceedings against cooperative sugar factories involved in the multi-crore sugar export scandal. As many of the erring mills are controlled by Maharashtra’s leading politicians, some of them ministers, the state government may find itself in a quandry.Chief Director (Sugar) R.P. Singhal has asked Cooperation Secretary Shivajirao Deshmukh to launch proceedings against the erring cooperative sugar factories under the Sugar Control Order and Essential Commodities Act. ‘‘You are requested to take action against the mills, under Clause 9 of the Sugar Control Order and Essential Commodities Act. The Law Ministry has suggested that defaulting exporters be prosecuted for violation of Clause 9 of Sugar Control Order. Action taken in the matter may be intimated to the directorate at the earliest,’’ Singhal said in his letter to Deshmukh.On June 9, 2002, Shiv Sena leader Kanhaiyalal Gidwani lodged a complaint with then CM Vilasrao Deshmukh, Union Food and Civil Supplies Minister Sharad Yadav and Union Finance Minister Jaswant Singh. The main charge against the erring factories was that they diverted the sugar meant for export to the domestic market. The export price was Rs 10,500 per metric tonne (MT), domestic price was Rs 13,000 per MT. Since six lakh MT sugar meant for export was illegally sold in the domestic market, there was a loss of excise duty of Rs 50 crore.Gidwani’s complaint was independently investigated. While the Central Excise Department confirmed that there was violation of rules, the then cooperation commissioner, Ratnakar Gaikwad, had recommended criminal proceedings against the sugar factories.Gaikwad had probed the complaint against all 22 erring units and confirmed that sugar meant for export was being diverted to the domestic market. Vilasrao Deshmukh had cleared the proposal submitted by Gaikwad, but for obvious political reasons, it was never implemented. An independent probe conducted on the instructions of Sharad Yadav also confirmed that there was blatant violation of the Essential Commodities Act.Significantly, while R.P. Singhal sent the official communication on June 13, Shivajirao Deshmukh’s office is yet to receive it. ‘‘Certainly, it is difficult, but we will decide the course of action after we receive an official letter,’’ a senior official of the Cooperation Department said.
