Surat: The National Cooperative Development Corporation (NCDC) has taken control of properties belonging to Kantha Sugar after the sugar mill failed to repay dues of Rs. 49.40 crore. The corporation is expected to auction these properties soon to recover the loan amount, reported DeshGujarat.
Kantha Sugar is currently under the management of a government-appointed custodian. The Gujarat government had earlier provided Rs 30 crore in financial aid to help restart the mill, but operations have remained shut for several years. On May 15, 2025, NCDC issued a notice demanding repayment of the outstanding loan, along with interest, within 60 days. As the mill management did not respond, the agency took symbolic possession of the properties on August 30, 2025. An auction is now likely in the coming days.
According to the custodian, Kantha Sugar’s assets, including the mill and land, are valued at around Rs. 140 crore, much higher than the NCDC loan amount.
Financial Snapshot of Kantha Sugar:
Outstanding NCDC loan: Rs. 49.40 crore
Share capital: Rs. 40 crore
Pending dues to farmers: Rs. 7.44 crore
Loan from Gujarat government: Rs. 30 crore
Total dues: Rs. 127.44 crore
