The High Court of Karnataka on Tuesday restrained the State government from finalising the bids for auctioning sugar seized from two sugar mills to recover dues towards sugarcane growers.
While allowing the authorities to receive the bids as per the auction notifications issued on September 1, the court said that auction should not be finalised or third-party interests should not be created based on the receipt of bids. Justice A.S. Bopanna passed the interim order on the petitions filed by Godavari Biorefineries Ltd. and another sugar mill.
Pointing out the difficulties of the mills to pay the additional price fixed by the State for purchase of sugarcane from the growers in view of steep fall in sugar price in the open market, the petitioners said the government could pay the remaining Rs. 100 per tonne to sugarcane growers as the State had paid Rs. 200 earlier this year.
