Banks did not allow release of sugar stocks: MCA informed

The counsel for 11 sugar mills submitted before MCA that the stocks of these sugar mills from Punjab were pledged with banks which did not allow their release. Moreover, he said, the fortnightly figures of PSMA stocks were "mere estimates".
These startling submissions were made by defence counsel Ashtar Ausaf before the MCA which had served them with show-cause notices for holding back stocks, thus violating MRTPO, 1970.
The Monopoly Control Authority in hearing against 12 sugar mills of the Punjab on Wednesday said that it would take action against the units for violation of the restrictive trade practices.
The Authority comprising Chairman Bilal Ahmed and two members Raza Arshad and Abdul Ghaffar held the hearing at MCA office.
The mills counsel submitted that some of the undertakings had held back stocks as they were pledged with banks, which did not allow release.
He further submitted that some millers had released stocks from February 28 afterwards to date. He added that he would submit a detailed reply and an affidavit on behalf of the undertakings.
However, after half an hour of arguments, the Authority allowed the attorney appearing on behalf of 23 sugar mills from the Punjab to file affidavit showing exact position of stocks.
Earlier, Faisal Islam, representing Noon Sugar Mills, challenged the show-cause notices arguing that the undertakings could not be served notices without initiating an inquiry and sharing the findings with millers.
The attorney argued that the Authority followed a simple procedure of taking an average release of four months. If the Authority reviews the release of his client on monthly basis, not an average of four months, it would find that only in the month of February Noon Sugar Mills had released meagre stock because of two reasons. First, the dealers were scared of NAB probe, and second, registration of dealers for tax.
He submitted that the millers were bound under the law to release 8 percent of their production, but the stocks could not be lifted from the warehouse of the mills as there are future agreements and some of the buyers lack storage capacity. Therefore, they prefer to store the stocks at the mills warehouse.
The respondent said that MCA was not working judiciously, but operating as a regulator, and playing a role of police.
After the close of the arguments, the Authority said that it would examine and consider the case under the law.
The Authority would hear 15 millers on Thursday. These include one from NWFP (Bannu Sugar Mills) and 14 mills from Sindh.