State Cane Commissioner DK Behera has asked Collector-cum-Deputy Commissioner, Yamunanagar, Girish Arora to initiate recovery proceedings against Saraswati Sugar Mills, Yamunanagar.

This will help sugarcane growers in the recovery of outstanding dues of Rs 88 crore from the mill.

“The Cane Commissioner has asked me to issue a recovery certificate against Saraswati Sugar Mills, Yamunanagar, for the recovery of cane price arrears and interest of farmers as arrears of land revenue,” said Arora.

He said, “We have started the process and the file will be put up before the District Revenue Officer soon for further action.”

Arora said after adopting a due procedure, the firm’s property might be auctioned to recover the arrears of land revenue.

He said the Cane Commissioner had taken this step as the mills had failed to clear the payment of cane growers timely.

As per the provisions of the Punjab Sugarcane (Regulation of Purchase and Supply) Act, sugar mills are required to make cane price payment within 14 days from the date of supply of cane to the factory. Thereafter, the occupier of the factory is liable to pay 15 per cent interest annually on delayed payments.

As per the letter of the Cane Commissioner, the firm has delayed the payment of cane price outstanding on account of the cane purchased for crushing during the season 2017-18 and are also liable to pay the interest thereon as per the provisions.

“An amount of Rs 88.65 crore as cane price arrears on account of cane purchased for crushing during 2017-18 (as on August 20, 2018), excluding interest thereon, is payable to cane growers by the firm,” the letter reads.

Senior vice-president (cane), Saraswati Sugar Mills, DP Singh refused to comment on the issue.