One-time loan pay-offs for Maha sugar co-ops

Settlement scheme may brook lenders' bankruptcy

PTI | March 30, 2010



Maharashtra government is planning to introduce a 'one time settlement' scheme to pay off loans availed by cooperative sugar factories in the state.

"A one time settlement scheme would be introduced for the cooperative sugar factories in the state to pay off their arrears," Cooperatives Minister Harshwardhan Patil informed the Legislative Council today.

Altogether 15 such sugar cooperatives owe banks Rs 888 crore and six have been served seizure of property notices, Patil said.

Considering bankruptcy of some cooperative banks who lent heavily these factories, the government is planning the one time settlement and the scheme would be announced soon, he said.

Shiv Sena MLC Diwakar Raote raised the issue of the factories evading repayment of loans and wanted to know what action has the Government taken against them.

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