Government Unable to Act Against Sugar Mill

Published: 19th February 2015 06:03 AM  |   Last Updated: 19th February 2015 06:03 AM   |  A+A-

BHUBANESWAR:The State Government on Wednesday expressed its helplessness to take any action against Laxmipati Balaji Sugar and Distilleries Pvt Ltd, the owner of the Badamba Sugar Mill, due to the pending court case.

 Responding to a query of Ranendra Pratap Swain (BJD), Cooperation Minister Damodar Rout said Laxmipathi Balaji Sugar and Distilleries took over the assets and business of Badamba Cooperative Sugar Mill through sales and purchase agreement on June 26, 2005.

 The Government had issued a show-cause notice to the company on August 30, 2006 for violating the agreement. However, the company challenged the show-cause notice in Orissa High Court which gave an interim stay.

 The Government filed a special leave petition in the Supreme Court against the stay order of the Orissa High Court. The apex court returned the case to the High Court with a direction to hear it afresh. Since the case is pending in court, the Government is waiting for the disposal of the case, the Minister said.


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