'Ready to resign if allegations proved'

'Ready to resign if allegations proved'

Farmers and factory employees are being misled by vested interests: Nagarajappa

Mysore Sugar Company (MySugar) chairman Nagarajappa offered to resign and also retire from public life if the allegations against him by MLA M Srinivas were proved.

Responding to the allegations here on Tuesday, he said the farmers and factory employees were being misguided by the MLA.

“All are aware of the happenings in the past and the development during my tenure as chairman. If Srinivas fails to prove the allegations he should resign from the Assembly,” he challenged.
Clarifying that there were biased reports on the functioning of the factory, he said there was no corruption or irregularities in functioning of the factory. “I am ready to face any probe,” he stated.

In the past, loans over Rs 260 crore have been availed from 16 banks. But, there is no information about its expenditure. It had accumulated to Rs 350 crore, including the interest. But now, the loan amount has been reduced to Rs 114 crore. Discussions have been held with bank officials to repay the amount in single instalments.

He flayed Srinivas for spending Rs 100 crore to purchase equipment capable of generating 30 megawatt power. But to generate 30 MW, around 6,000 tonne of sugarcane should be crushed every day. But, the capacity of the factory is only 5,000 tonne and only 2,700 tonne is being crushed currently. Despite knowing all this, on what basis did they borrowed Rs 100 crore? he questioned.

“The allegation that spirit is being sold for lesser price is baseless. Spirit is sold through tenders and the chairman has no role in it. While it was sold at Rs 40 per litre one month, it was sold at Rs 15 the other month. The factory has reached such a pathetic condition because of this,” he added.
He said he has submitted a report to the government on the irregularities in the past.

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