Sugarcane Farmers Urge Government to Probe Nexus Between Sugar Mill and Banks


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Chennai: After the arrest of Rama Thiyagarajan, managing director of a private sugar mill, on charges of duping hundreds of sugarcane farmers of more than Rs 80 crore in the last few years, affected cane growers from Thanjavur urged Tamil Nadu government to probe a possible nexus between sugar mills and officials of nationalized banks, which had extended multi-crore loans to the mills.

A farmers’ association has also filed a petition before the Madurai bench of Madras High Court demanding a CBI inquiry into the affairs of Thiru Arooran Sugar Mills.

Police took action against the MD after the farmers complained that the mill failed to pay their dues since 2016-17. As many as 1,500 farmers sent cane to the mill for crushing.

Farmers alleged that the mill obtained their signatures on documents from them under the pretext of processing to disburse cane arrears. The management assured them that they are taking the help of nationalised bank to pay their dues. However, farmers received notice from the bank demanding to repay loans that they borrowed from the bank.

By using forged documents, they have obtained loans from several banks, and it is not possible without the nexus of bank officials, farmers alleged.

Regarding the same, farmers have submitted petitions to the chief minister, chief secretary and secretaries to industries, agriculture among others, besides district collector and director of Sugar Corporation.

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