Taking a tough stance on the non-payment of sugarcane dues, the Uttar Pradesh government has issued recovery certificates (RCs) against sugar mills operated by big Groups viz. Bajaj Hindusthan, Modi, Simbhaoli etc.
The RCs have been issued under Sections 17 (4) and 18 (3) of UP Sugarcane (Supply and Purchase Regulation) Act, 1953. The action was taken after these mills failed to settle their payment commitments despite repeated warnings by the government.
The RC empowers the district administration, if need be, to seize movable and immovable properties, including sugar stock, for auction to settle the liabilities. The four defaulter mills are Sujanpur-Badaun