"A CBI or CID enquiry should be initiated into the misuse of funds released for MySugar over the past five years," he told reporters here.
Chalavurayaswamy, who resigned as Lok Sabha member a couple of days back, said the management of MySugar and Pandavapura Sahakara Sakkare Karkhane (PSSK) should be separated.
"Instead of nominating chairman for sugar factories, the government should depute able officers to head them and manage the affairs in a transparent manner. If the government does not take appropriate steps to revive the ailing industries, the issue will be taken up on the floor of the Assembly and also on the streets," he warned.