MADHYA PRADESH Audyogik Kendra Vikas Nigam (MPAKVN) has taken over Bagh Cement after its owners failed to pay Rs 12.49 crore that they had taken as loan from the organisation.
Official sources said that Bagh Cement, a mini cement plant having a capacity of 75 tonne, had been set up in Tanda, 10 km from Kukshi, in Dhar district, by Manohar Dev and his family.
In 1985, the company took a loan of Rs 90 lakh from MPAKVN, but soon they started defaulting on payments. Last year, they had a one-time settlement agreement with the MPAKVN, but again the company owners failed to fulfil their commitment.
The factory spread over five hectares of land and all the machinery was taken over this afternoon by MPAKVN, who plan to auction the factory in the near future. The factory was closed since June 2006.
Sources in MPAKVN said that they would take over a few other factories in and around Indore, who have defaulted in their payments within a couple of months.