The farmers learnt that loans had been taken in their names only when they approached the Bagaha-1 branch of Punjab National Bank. They were denied Kisan Credit Cards; the bank said 2,055 of them already had cumulative loans of Rs 39.90 crore for 2009-10 and 2010-11.
The state government has ordered a sugarcane department inquiry into the alleged cheating by Tirupati Sugars Ltd. A team from Patna reached Bagaha this week.
Tirupati Sugars is also alleged to have not passed on grants and subsidies under two state schemes and a Central one for farmers. Mills are the designated authorities to disburse this money in their area. The Bagaha mill, which Tirupati Sugars Ltd took over in 2009, allegedly didn’t do so in 2009-10 and 2010-11.
Denying the charges, Tirupati Sugars Ltd general manager, commercial, C P Upadhyay said: “The firm took Rs 65 crore loan from PNB in 2009 to increase mill production capacity... It was asked by the bank to ‘give details of farmers to assess viability of sugar production’.” According to the firm, all it did was take and submit details of farmers’ lands.
Asked if D P Yadav was part of the management, he said: “He is in top-level management. His son-in-law Deepak Yadav looks after the firm’s affairs at Bagaha.” Deepak Yadav was not available for comment.
The probe will look into the possible complicity of bank officials in the scam, as well as bills the firm submitted certifying that grants/subsidies had been disbursed to farmers.
An RTI query by Gramin Vikas Sangh, a voluntary group, first revealed the scam. In its reply, the sugarcane department said 4,033 farmers had been “given grants during 2010-11”, though the farmers say not more than 300 had got the money. Documents with The Indian Express show that Tirupati Sugars claimed to be acting as guarantor for farmers.
The bank had no convincing reply on whether loans were deposited into farmers’ accounts or withdrawn individually by them against receipts.
Over 100 Tharu community farmers from Harnatand are among those allegedly duped. Most of them are illiterate and gave thumb impressions on a blank paper to the sugar firm, says the vice-chairman of the Sangh, Manoj Mishra. Others were allegedly lured into signing on the promise that this would enable them to get a bank account for easy loans.
Awadhesh Kumar Yadav, a farmer from Rampurva village, says: “I was stunned to know that I have a loan of Rs 2 lakh to pay back”
Again, under a Central scheme, six selected farmers from a village were to get Rs 3,000 each for seeds. The firm allegedly swindled over Rs 64 lakh for 2010-11, with the money never reaching the beneficiaries.
Additional Director, Cane, Bagaha Prem Lal Singh said: “The Rashtriya Kendra Vikas and Rajya Yojana give grants for seeds and fertiliers worth Rs 3 crore and Rs 1 crore every year... We have reports of the firm starting to disburse grants only of late.” He refused to answer questions on the possible connivance of the sugarcane department, saying he joined only this June.
The state government has ordered a sugarcane department inquiry into the alleged cheating by Tirupati Sugars Ltd. A team from Patna reached Bagaha this week.
Tirupati Sugars is also alleged to have not passed on grants and subsidies under two state schemes and a Central one for farmers. Mills are the designated authorities to disburse this money in their area. The Bagaha mill, which Tirupati Sugars Ltd took over in 2009, allegedly didn’t do so in 2009-10 and 2010-11.
Denying the charges, Tirupati Sugars Ltd general manager, commercial, C P Upadhyay said: “The firm took Rs 65 crore loan from PNB in 2009 to increase mill production capacity... It was asked by the bank to ‘give details of farmers to assess viability of sugar production’.” According to the firm, all it did was take and submit details of farmers’ lands.
Asked if D P Yadav was part of the management, he said: “He is in top-level management. His son-in-law Deepak Yadav looks after the firm’s affairs at Bagaha.” Deepak Yadav was not available for comment.The probe will look into the possible complicity of bank officials in the scam, as well as bills the firm submitted certifying that grants/subsidies had been disbursed to farmers.
An RTI query by Gramin Vikas Sangh, a voluntary group, first revealed the scam. In its reply, the sugarcane department said 4,033 farmers had been “given grants during 2010-11”, though the farmers say not more than 300 had got the money. Documents with The Indian Express show that Tirupati Sugars claimed to be acting as guarantor for farmers.
The bank had no convincing reply on whether loans were deposited into farmers’ accounts or withdrawn individually by them against receipts.
Over 100 Tharu community farmers from Harnatand are among those allegedly duped. Most of them are illiterate and gave thumb impressions on a blank paper to the sugar firm, says the vice-chairman of the Sangh, Manoj Mishra. Others were allegedly lured into signing on the promise that this would enable them to get a bank account for easy loans.
Awadhesh Kumar Yadav, a farmer from Rampurva village, says: “I was stunned to know that I have a loan of Rs 2 lakh to pay back”
Again, under a Central scheme, six selected farmers from a village were to get Rs 3,000 each for seeds. The firm allegedly swindled over Rs 64 lakh for 2010-11, with the money never reaching the beneficiaries.
Additional Director, Cane, Bagaha Prem Lal Singh said: “The Rashtriya Kendra Vikas and Rajya Yojana give grants for seeds and fertiliers worth Rs 3 crore and Rs 1 crore every year... We have reports of the firm starting to disburse grants only of late.” He refused to answer questions on the possible connivance of the sugarcane department, saying he joined only this June.
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