Sugar co-ops face govt action for loan default

The state government has decided to take to task respective board of directors of 31 sugar cooperatives that were extended margin money loans (down payment) and have defaulted in paying back the first two installments.

- Surendra P Gangan

MUMBAI: The loans were disbursed to the cooperatives, linked to prominent politicians, in tranches ahead of the Lok Sabha election in August 2024, and thereafter in March 2025. The cumulative amount totals ₹4,355 crore.

Some of the sugar factories that have taken loans are controlled by top Maharashtra leaders -- Radhakrishna Vikhe-Patil (BJP), Harshavardhan Patil (NCP-SP), Shivendraraje Bhosale (BJP), Sanjay Mandalik (Shiv Sena), Hassan Mushrif (NCP), among others. The loan taken by each sugar factory is approximately between ₹40 crore and ₹300 crore. The government did not disclose who among them, or 26 others, were defaulters.