Bargarh, Oct 20: The Odisha government finally closed down the Bargarh Cooperative Sugar Mills, which had been lying inoperative since 2016-17.
The decision was taken following a report submitted by its managing director in which it was stated that the mill has been lying dormant since 2016-17 with little hope of its turn over.
In exercise of powers under section 72 of the Odisha Cooperative Societies Act, 1962, Registrar of Cooperative Societies, Odisha, Uddhaba Chandra Majhi issued an order on October 16, 2023, for liquidation of the sugar mill with immediate effect.
As per the audit report for 2022-23, the accumulated loss of the mill has mounted to Rs 72.59 crore as on March 31, 2023.
Besides, no annual general body meeting of the factory has been held after August 20, 1989 which violates the statutory provision of the OCS Act, said Majhi.
Majhi said a show cause notice was issued to the managing director of the sugar mill on May 9 this year asking him to explain why the factory should not be wound up within a month of the notice. The MD in his report said there is little hope for its revival.
Meanwhile, Majhi has appointed additional district magistrate, Bargarh, Lalat Kumar Luha as liquidator of the sugar mill.