Top Searches
Advertisement

SBEC Sugar Faces High Court-Directed Recovery for Cane Dues from 2024–25 Crushing Season


Updated: July 23, 2025 12:16

Image Source : sbecsugar.com
SBEC Sugar Ltd has received a directive from the Hon’ble Allahabad High Court ordering recovery proceedings related to unpaid cane dues for the 2024–25 crushing season. The order follows a petition filed by cooperative cane societies and state authorities seeking enforcement of payment obligations under the Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act.
 
Key Highlights:
 
  • The High Court has instructed the District Collector to initiate recovery as arrears of land revenue, citing non-payment of dues to cane growers.
  • The dues pertain to sugarcane procured during the 2024–25 season, with the company allegedly defaulting on timely payments despite prior notices.
  • SBEC Sugar has acknowledged receipt of the court order and is expected to respond with a compliance roadmap in its next board meeting.
 
Operational Context:
  • The company had previously contested recovery charges levied under Section 3 of the 1890 Act, arguing that payments were made directly to growers and societies.
  • However, the court clarified that recovery charges are applicable only when state authorities execute the recovery, not when dues are paid voluntarily.
  • The current order pertains strictly to cane price dues and excludes earlier disputes over recovery fees.
 
Strategic Outlook:
 
  • Analysts believe the ruling may impact SBEC Sugar’s liquidity and operational planning for the upcoming season.
  • The company may explore staggered payment mechanisms or seek relief through state-level sugar industry forums.
  • Further legal developments are expected as SBEC Sugar evaluates its options under appellate provisions.
 
Source: Rediff MoneyWiz, Allahabad High Court Order, Economic Times Markets (July 2025)

Advertisement

STORIES YOU MAY LIKE

Advertisement

Advertisement