The Punjab National Bank (PNB) on Friday seized a sugar factory owned by former minister Babanrao Pachpute for allegedly defaulting on a loan of more than '300 crore.
The Punjab National Bank (PNB) on Friday seized a sugar factory owned by former minister Babanrao Pachpute for allegedly defaulting on a loan of more than '300 crore. Pachpute, a former NCP leader who was the state tribal development minister in the previous government, joined the BJP in 2014. On Friday, PNB seized Saikrupa Sugar and Allied Industries for the non-payment of an outstanding amount of '383 crore. The factory owned by Pachpute is located in Shrigonda tehsil of Ahmednagar district. The financer — Punjab National Bank at Kalyaninagar in Pune informed the district collector of Ahmednagar about the seizure of the factory.
According to source, Saikrupa Sugar Mill was one of the biggest such establishments in terms of its capacity to crush sugar. But the mill could not make profits due to Ahmednagar falling in the rain shadow region, which affected the supply of sugarcane for the mill. The factory had sought a loan from three banks — PNB, Andhra Bank and Bank of Baroda. With PNB being the leading bank, all three banks had disbursed loans to the tune of '278 crore in 2012. Over the year, when the amount was calculated with interest, the total outstanding amount reached ' 383 crore and the mill management expressed its inability to repay it. In December 2015, PNB issued a notice to Pachpute’s mill, asking him to make the payment within a 60-day period. But the mill failed to meet the deadline.
