Kolhapur (Maharashtra) : The e-auction sale of Daulat Shetkari Sahakari Sugar Factory has been cancelled following an order from the Debt Recovery Tribunal (DRT), Delhi on Monday, reports Lokmat.
The District Central Cooperative Bank had earlier agreed to lease the factory for 39 years under a ‘live and license’ arrangement to Atharv Intertrade Pvt Ltd, on the condition that all statutory dues, including dues to the bank totaling ₹162 crore, would be cleared. A tripartite agreement was signed between the bank, the company, and the factory management to formalize this arrangement.
As part of the lease agreement, the Sugar Development Fund (SDF) dues of ₹18.8 crore, along with interest, were scheduled to be recovered through an e-auction conducted by the National Cooperative Development Corporation (NCDC). The auction had been announced on 23 August and was scheduled for Thursday, 9 September.
To seek a stay on the auction, Atharv Intertrade Pvt Ltd filed an appeal in the DRT court in Delhi, represented by senior advocate Preeti Bhatt on behalf of the bank. After reviewing the case, the DRT observed that the lease agreement executed by the KDCC Bank to operate Daulat Sugar Factory was valid. The tribunal also confirmed that the bank’s process under the Securitization Act, 2002, was proper and that the lease terms were fully known to the NCDC. The court noted that the matter could now be addressed even after six years.
Earlier, during a district bank meeting, bank chairman and minister Hasan Mushrif had assured members that any pending dues would be paid by Atharv Intertrade, and the factory would remain the property of the farmers. The lease agreement, granting 39-year operation rights to the company to recover the bank’s dues, remains in place.
The bank clarified in its statement that the authority to cancel the lease does not lie with the recovery officer but with the civil court, as emphasized by the tribunal.
This decision ensures that the Daulat Sugar Factory will continue to operate under the lease, while statutory dues are recovered systematically.
