The report, "Sugar barons exploit loopholes, default on govt. dues.." (Indian Express, 14/5/11) is another face of corruption in our country. It is very easy for politicians in Maharashtra to start a sugar factory. Get money from the Maharashtra State Co-operative Bank ( MSCB), get it underwritten by the Maharashtra State, default on payment, get it auctioned off at a low price and then launch your own factory. It is a neat way to make big money. Sharad Pawar says it is the fault of the Maharashtra government as it did not pay MSCB after underwriting the loan. We have to thank the Public Accounts Committee of the State for bringing it to the notice of the public. At long last RBI and the State government have taken action – taking over MSCB. We have to wait and watch what action the RBI and the State take against the defaulting sugar barons.
You had published a series of reports entitled, "The Great Indian Bank Robbery" in December, 2002 exposing how the corporate sector was looting the banks. The Banks had the mind-boggling amount of Rs.110,000 crore NPA – almost the amount involved in 2G scam. Now you have an opportunity to do similar study on co-operative banks and co-operative sugar factories in Maharashtra.
http://www.indianexpress.com/news/sugar-barons-exploit-loopholes-default-on-govt-dues-pac/790567
May 15, 2011.
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