The Maharashtra government has blamed the Industrial Development Bank of India (IDBI) and IFCI for the over Rs 700 crore default by co-operative sugar factories and spinning mills in the state.
These mills had raised money on the back of state government guarantees. The state will approach the Debt Recovery Tribunal Appellate Authority (DRTAA) on Monday seeking a stay on the implementation of the DRT order for attaching government property to recover the Rs 737 crore in outstanding loans owed by 12 co-operative sugar factories and spinning mills.
The FIs issued a show-cause on Thursday asking why state government properties should not be attached to recover the outstanding loans owed by these units.
A senior government official told Business Standard: The co-operation department in Mantralaya has decided to blame IFCI, the lead institution, for giving faulty appraisals in respect of loans given to co-operative sugar factories (CSFs). Similarly, the textiles department will blame IDBI, the lead agency, in respect of the loans issued to spinning mills.