Udupi, Karnataka: An investigation has confirmed a loss of Rs 13.9 crore to the Dakshina Kannada Cooperative Sugar Factory in Brahmavar following the sale of old machinery. The state government has now granted permission for criminal prosecution against those responsible, Minister for Textiles, Sugarcane Development, and Agricultural Marketing Shivanand Patil said.
The investigation report indicates that the negligence of the administration, members of the tender-cum-auction technical committee, and former managing directors Praveen B Nayak and GN Lakshminarayana led to the loss. Hence, permission was granted for criminal prosecution against the former managing directors in connection with the previously filed criminal case. Additionally, a departmental inquiry against these two was also recommended. Furthermore, instructions were given to recover the lost funds from those responsible, the minister said, reprted The Times of India.
Patil explained that the board of directors, with government approval, sold the factory building and machinery to a Chennai-based agency. However, MLC Manjunath Bhandary and Udupi District Farmers’ Association general secretary lodged a complaint alleging irregularities in the tender process. Following this, retired district judge K. Radhakrishna Holla was appointed to probe the matter. His report confirmed misconduct in the sale.
The Brahmavar sugar factory, which began operations in 1985, continued crushing sugarcane until the 2002–03 season. A shortage of sugarcane and working capital forced it to halt operations from 2003–04. With machinery and buildings deteriorating after 17 years of disuse, the board decided to sell them through a tender-cum-auction process. However, the investigation found that the tender process was not conducted as per rules. The minister said directions have also been issued to register a case against the technical advisory committee involved.
