As the Enforcement Directorate investigates the alleged multi-crore cooperative sugar mill scam in Maharashtra, Cooperation Minister Balasaheb Patil has the tough task of defending his party, the NCP, and the state government. Patel denied allegations that the sale of sugar cooperatives to private entities at throwaway prices benefited politicians.
Excerpts from an exclusive interview:
Q. The ED has alleged that a scam involving cooperative sugar mills affected lakhs of farmers in Maharashtra. Your comments.
A. There is no scam involving cooperative sugar factories. Therefore, the question of farmers being affected does not arise. The issue relates to the sale of cooperative sugar mills under the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act 2002. [The mills] have defaulted on loans taken from the Maharashtra State Cooperative Bank and some district cooperative banks. So far, 36 mills have been sold by these banks or financial institutions. The SARFAESI Act empowers cooperative banks to sell such properties for loan recovery.
Q. Activist Anna Hazare has written to Union Cooperation Minister Amit Shah alleging a Rs25,000-crore scam involving cooperative sugar mills. Are you examining the allegation?
A. The alleged complaint, about the loss of Rs25,000 crore, may be with…