Third case against Chennai firm for duping sugar mill

Aurangabad: At a time when the Nanded and Latur police carrying out a probe into the alleged duping of sugar mills by a Chennai based firm, another case of cheating of a sugar mill has been registered against the same company.

The third offence of cheating was registered against the Chennai-based firm’s directors and representative on Friday in Latur district. The earlier offences were registered in Nanded and Latur districts.The Latur police have arrested accused Abhijit Deshmukh hailing from Ahmednagar district, who is said to be the representative of the firm. He is currently in five days of police custody.

Latur superintendent of police Nikhil Pingale told TOI, “In the latest incident, the suspects using the common modus operandi of assuring the sugar mills of selling the export quota sugar in international market, purchased several metric tonnes of sugar and sold it in the local market.”

Due to their alleged act, the third sugar mill has incurred a loss to the tune of over Rs2.5 crore as it was compelled to pay full the GST.

As per the central government norms, every sugar factory has to pay 0.1 per cent GST if the sugar export targets are met. The documents of selling the produce in international market are to be filed within 90 days of selling the export quota sugar. Failing to file the documents within the stipulated time is assumed as company failed to meet export target and is compelled to pay 4.99 per cent GST.

In case of the Nanded-based sugar mill, the accused had purchased 5,682 metric tonnes of sugar. In the offence registered on Thursday in Latur, the suspects purchased 8,364 metric tonnes of export quota sugar. In the offence registered on Friday, also in Latur, the accused purchased over 2,000 metric tonnes of export quota sugar.

The police investigation revealed that the sugar was purchased by the Chennai-based private limited firm in the past one year.


Stay updated with the latest news on Times of India. Don't miss daily games like Crossword, Sudoku, and Mini Crossword.