Loan Defaulter
The sugar factory was given loan by a consortium of four banks, three cooperatives and one nationalised —MSC, DCCB Jalgaon, DCCB Mumbai, and Dena Bank. The factory defaulted in repayment of the borrowed money. The mill owed about 730 million rupees to three banks - Maharashtra State Cooperative (MSC) Bank, Jalgaon District Central Cooperative Bank and the Mumbai District Central Cooperative Bank.
The Mumbai Central District Cooperative Bank served many notices on factory for recovering outstanding loan of 177 million rupees.
The bank sealed the factory on January 23, 2007. This was the second occasion when the mill had been sealed. Earlier, it was sealed in January 2006, but was reopened after the board of directors headed by G N Patil - younger brother of Pratibha Patil requested for an opportunity to improve the performance of the mill.
Read more about this topic: Sant Muktabai Sahakari Sakhar Karkhana
Famous quotes containing the word loan:
“Slight was the thing I bought,
Small was the debt I thought,
Poor was the loan at best—
God! but the interest!”
—Paul Laurence Dunbar (1872–1906)