The Punjab and Haryana high court on Thursday stayed Punjab government’s recovery notices to two private sugar mills.
The high court bench of justice RK Jain acted on the petitions of Rana Sugars Ltd, Amritsar, and AB Sugars Ltd, Hoshiarpur. The high court has directed that in case the petitioners’ godown had been locked, the government should open it immediately.
The initial petition was filed by Chadha Sugar Mill, Gurdaspur, on September 30, later Bhagwanpura Sugar Mill, Sangrur, too got a stay from the high court.
The mills are opposing Rs 200-crore recovery notices slapped by the government, including those for payment of cane growers for the season 2015-16. They are arguing that the government had decided that all private sugar mills would disburse cane price at Rs 245 per quintal to growers for the 2015-2016 season and the balance agreed price of Rs 50 per quintal was to be given by the state.
But earlier this year, the government stopped paying its share of Rs 50 per quintal to the farmers. The government has slapped recovery notices of over Rs 200 crore on seven private mills of the state.