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:
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The High Court has instructed the District Collector to initiate recovery as arrears of land revenue, citing non-payment of dues to cane growers.
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The dues pertain to sugarcane procured during the 2024–25 season, with the company allegedly defaulting on timely payments despite prior notices.
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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:
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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.
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However, the court clarified that recovery charges are applicable only when state authorities execute the recovery, not when dues are paid voluntarily.
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The current order pertains strictly to cane price dues and excludes earlier disputes over recovery fees.
Strategic Outlook:
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Analysts believe the ruling may impact SBEC Sugar’s liquidity and operational planning for the upcoming season.
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The company may explore staggered payment mechanisms or seek relief through state-level sugar industry forums.
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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)
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