UP CM Yogi Adityanath orders probe into sugar mill sale by Mayawati govt in 2007 | lucknow | Hindustan Times
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UP CM Yogi Adityanath orders probe into sugar mill sale by Mayawati govt in 2007

If necessary, the state government would also recommend a CBI inquiry into the Rs 1,100-crore scam over the sale of the 21 mills, Yogi Adityanath said.

lucknow Updated: Apr 08, 2017 10:00 IST
Umesh Raghuvanshi
UP chief minister Yogi Adityanath coming out after a meeting at Lok Bhawan in Lucknow.
UP chief minister Yogi Adityanath coming out after a meeting at Lok Bhawan in Lucknow.(PTI FILE PHOTO)

Uttar Pradesh chief minister Yogi Adityanath has ordered an inquiry into the Mayawati-led BSP government’s decision to sell 21 state sugar mills for a song in 2010-2011.

“A thorough inquiry should be conducted into the Rs 1,100-crore scam. If necessary, the state government would also recommend a CBI inquiry into the issue,” the chief minister said when presentations about sugarcane development department were made before him at his Lal Bahadur Shastri Bhawan office here late on Friday evening.

Adityanath said nobody had any right to sell government properties at unreasonable prices. The state government would not allow anybody to misuse government property under any circumstances, he said.

The Mayawati government had decided to sell 21 sugar mills on June 4, 2007. The running mills put on sale included Amroha, Bijnor, Bulandshahar, Chandpur, Jarval Road, Khadda, Rohana Kalan, Sakauti Tanda, Saharanpur and Siswa Bazar.

As there were accusations of corruption, the opposition had demanded a CBI inquiry. After taking over the reins of the state, the then Samajwadi Party government had ordered a Lokayukta probe on November 6, 2012.

The Comptroller and Auditor General of India in its report had estimated losses to the tune of Rs 1,179.84 crore due to sale of these sugar mills.

It had observed that the land and buildings of the sugar mills were undervalued. Besides concession granted to undervalue the land and buildings of these sugar mills, no stamp duty was levied on the sale.

The auditor had also observed that no competition was possible due to connection among the bidders. It noted that the bidders were aware of the expected value before the bidding was opened. Bids that were 50% below the expected value were kept alive and the Swiss challenge method was used.

The process of opening the bids was changed, the CAG said, adding that the core group of secretaries on disinvestments did not value the land and the buildings appropriately and focused on the discounted cash flow method.