The Cane Commissioner Punjab has ordered attachment and auction of seven sugar mills which failed to pay outstanding amount of Rs 1.84 billion to sugarcane farmers during 2016-17, reveal documents available with Business Recorder. Out of the seven sugar mills, Haseeb Waqas Sugar Mill, belongs to close relatives of Chief Minister Punjab Shehbaz Sharif and deposed prime minister Nawaz Sharif, sources said.
The action has been initiated by the Cane Commissioner Punjab in exercise of powers conferred on him under Section 6(2) of the Punjab Sugar Factories Act, 1950. The official order reads, "I have no option but to declare the pending payments of the growers as Arrears of Land Revenue and direct the Deputy Commissioner/Additional Cane Commissioner to recover the outstanding amount as arrears of Land Revenue along with 11% markup per annum form the date of closure of the Sugar Mills ie 15.02.2017 as well as initiate all legal actions against the occupier owner General Manager of M/S Haseeb Waqas Sugar Mill, Jatoi, District Muzaffargarh immediately in the public interest."
All the concerned deputy commissioners have been asked to take immediate steps for recovery of Rs 1.84 billion from the defaulting sugar mills. The sources said there were apprehensions of protests and law and order situation by the growers' community as witnessed two years back. The extreme step was taken to protect the legal right of growers, said an official of the food department requesting anonymity.
According to details, during the crushing season 2016-17, all the 41 sugar mills situated in various parts of the province purchased about 442.79 million metric tons of sugarcane worth Rs 199.443 billion for production of sugar to meet the domestic and export demand. Out of the total amount, the mills owners paid Rs 196.713 billion to growers till June and only 23 mills cleared payments to farmers whereas seven owners failed to pay an amount of Rs 2.72 billion to growers.
Out of total 18 defaulting sugar mills, 11 mills made partial payments to the farmers while action has been taken against seven mills which failed to pay Rs 1.84 billion. The growers lodged complaints with the Punjab government as well as the Cane Commissioner Punjab taking stance that they were facing starvation and unable to cultivate next crops. On the repeated demands and requests of farmers, the Cane Commissioner under rule 14(2) of the Punjab Sugar Factories Control Rules, 1950, directed the mill owners to make payment of sugarcane to the growers within 15 days of the delivery of sugarcane.
The Cone Commissioner under the law issued show-cause notices to the mills' owners and provided them an opportunity of personal hearing to settle the issue of outstanding amount. However, during personal hearings the management of the sugar mills reportedly failed to resolve the issue of non-payments.
When the mills owners allegedly violated the orders of authority, the Cane Commissioner under section 6(2) of Punjab Sugar Factories Act declared the outstanding amount as arrears of land revenue and directed the concerned Deputy Commissioners to initiate action against the defaulter sugar mills. The DCs were further directed to initiate legal proceedings under section 21 of the Act against the defaulter owners as well.
The owners of attached sugar mills may face imprisonment up to two years in addition to a heavy fine under the Act. According to documents, Haseeb Waqas Sugar Mills situated in District Muzaffargarh was found defaulter of Rs 74.1 million, Hunza-II Sugar Mill, Jhang, of Rs 0.6 million, Noon Sugar Mill, Sargodha, of Rs 101.71 million, Patoki Sugar Mill, Kasur, Rs 118.6 million, Shakarganj Bhone, Jhang, Rs 254.32 million, Darya Khan Sugar Mills, Bakkar, Rs 321.55 million and Abdullah Sugar Mill situated in Okara has been found defaulter of Rs 140.56 million.
As per law, "the sugar mills owners are required to make payment of sugarcane price to the farmers within 15 days of the delivery of sugarcane". The last crushing season was closed on February 15, 2017. Under the law, "the defaulter owners are liable to pay interest at the rate of 11 percent per annum on unpaid balance amount of payment."
According to a senior official of the food department, two mills namely Imperial, Mandi Bahauddin, and Abdullah-II, Sargodha, had been restrained from purchasing sugarcane during the recent crushing season as they failed to clear outstanding dues of pervious buying of sugarcane. Two sugar mills namely Imperial Sugar Mills, Khenawal, and Brothers Sugar Mills, Kasur, were also sealed and attached under the Act for non-payment of amount to the growers.
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