Meerut: In a letter written to Uttar Pradesh minister of state for sugarcane development Suresh Rana, Union MoS for HRD Satya Pal Singh has warned that industrialist Umesh Modi, who owns two sugar mills with over Rs 450 crore dues pending to farmers, might be “another Nirav Modi in the making”.
In the letter dated December 2, a copy of which is also marked to UP chief minister Yogi Adityanath, Singh wrote, “There is Rs 312 crore pending on Malakpur sugar mill and Rs 150 crore pending on Modi sugar mill – both of them are owned by Umesh Modi. In the last balance sheet of 2012-13, which was submitted by Malakpur sugar mill to the Registrar of Companies, it was found that instead of clearing farmers’ dues, it had diverted Rs 231.76 crore to other companies of its group, like Modi Energy, Modi Securities and others.”
The Union minister, who is also Baghpat MP, mentioned that he had even flagged off the issue to the former UP CM Akhilesh Yadav and had submitted a detailed report to him. “So, the reason behind being unable to clear farmers’ dues is not that the mill is running in losses. They are diverting the money earned to their other companies,” Singh wrote.
Comparing Umesh Modi to fugitive diamond trader Nirav Modi, whose name has often been used by opposition leaders to target PM Narendra Modi, Singh wrote, “I am afraid that Umesh Modi – just like Nirav Modi – will flee from the country after usurping money of the poor farmers.” Refusing to comment on the Union minister’s Nirav Modi remark, Ved Pal Malik, vice-president of Modi sugar mill, said, “The recovery of sugarcane has been dipping for the last two years and sugar prices are considerably low in the market, which have caused loses to the mills. However, efforts are being made to clear the farmers’ dues soon.”