Business

Saraya industries denied Congress allegations of Rs.950 Cr fraud with Punjab sugar mills

June 19, 2017 01:10 PM

Punjab News Express
CHANDIGARH: The Saraya Industries Limited has denmied the allgations by Congress leader Lalli Majithia that they have caused a loss fo Rs.950 crores to Punjab Cooperative Sugar Mills with the alleged connivance of former Akal minister Bikram Singh Majithia.

Pardeep Ahuja director Saraya Industries has issued following statement in response to the said news.

"Allegations made yesterday that benefits worth crores in allocation of power tenders of nine sugar mills to Saraya Industries limited are absolutely baseless. Allegations seem to have been made due to misinformation and with intent to target Mr Bikram Singh Majithia through us. We would like to highlight that we conduct our business through utmost propriety and ethics and take pride in the fact that in the 100 years of our existence we have succeeded in guarding these values. We have always relied upon our technical abilities and expertise in conducting our business.

We would like to highlight that we have not caused any losses to the cooperative sugar mills as alleged. We would also like mention that we are in no way associated with the company A2Z as alleged. A2Z is a publicly listed Company having no relation with Saraya Industries Limited.

In 2008 Punjab Sugarfed under the able guidance of the then Cooperation Minister Capt. Kanwaljit Singh came out with a Public tender in seven different newspapers including popular newspapers like The Tribune, Indian Express and others. It was a tender inviting Company to setup cogen plants on BOOT (Built own operate and transfer) basis at nine cooperative sugar mills. We also participated in this Public tender by sending our bid document. The bidders were asked to give their bids on the percentage of share of Revenue they would share with the cooperative sugar mill from the power generated from this Cogen project at the sugar mill. The tenders were conducted in an absolutely open and transparent manner.

Saraya Industries Limited was the highest bidder in four of these nine projects. The project is setting up of INR 85 crore power plant by Saraya Industries Limited and at the end of the BOOT period giving this huge asset free of cost (zero value) to the cooperative mill. We would like to highlight that at no time was there any right of Saraya Industries Limited on the cooperative sugar mills as has been wrongly alleged yesterday.

In 2011 cooperative mills initiated arbitration against Saraya Industries Limited and the arbitrator dealt with the issue and award was passed based on the merits of the case.

We would also like to highlight that the figures of INR 915 crores have no credibility and are arbitrary. We would be able to comment on the same once the details of these figures are provided to us".

Pardeep Ahuja
Director, Saraya Industries Limited

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