The Tirupati Sugars Limited mill at Bagaha. Telegraph picture

Bagaha, Oct. 28: Sugarcane growers in the district have set a November 9 deadline for the government, the day chief minister Nitish Kumar embarks on his Sewa Yatra, to complete the inquiry into the alleged misappropriation of their money by a sugar company.

Over 2,000 farmers were allegedly duped of about Rs 40 crore by the West Champaran-based Tirupati Sugars Limited on the pretext of procuring smart cards for them during the 2009-10 crop season.

The smart cards were supposed to be used for getting seeds and fertiliser. Instead, the company, as a guarantor of the farmers, allegedly procured Kisan Credit Cards (KCCs) in connivance with the Bagaha-branch of a nationalised bank.

Farmers such as Yugal Kishore Singh of Champapur Gonauli village under Valmikinagar police station, Mani Bhusan Pandey of Serwa-Barawal under Bagaha police station and Banarsi Sao of Paroraha village under Laukaria police station are among several other farmers who said how over a year ago some employees of the sugar factory management collected signatures or thumb impressions “on papers bearing content in English”.

The company’s officials also collected photographs of the sugarcane growers and photocopies of their photo identity cards on the pretext of giving them smart cards, which the farmers could use to get seeds and fertiliser on the factory’s credit.

“The cash-strapped sugarcane growers readily accepted the company’s proposal, without realising that it was a fraudulent deal,” Yugal said.“We realised that we were cheated only when we received orders from the bank, asking us to repay KCC loan amounts,” he added.

Sugarcane department and minor irrigation minister Awadhesh Prasad Kushwaha told The Telegraph: “We have received complaints from several farmers on alleged irregularities in distribution of seeds and KCC loan amounts. A thorough and impartial inquiry has already been ordered.” According to the sugarcane growers, huge portions of the KCC loans for farmers were allegedly withdrawn by the sugar factory management and utilised (by the factory) to purchase landed property. “This amounts to cheating the sugarcane growers and the government as well,” a farmer said.

Chief general manager of the company, C.P. Upadhyaya, said, “Some people with vested interests are conspiring against the factory. Besides, some workers, who were sacked because of their non-performance, are trying to blackmail the company by raising such baseless charges.”

According to the lists of beneficiaries submitted by the Tirupati Sugars Limited to the office of the assistant director (sugarcane industry), the factory claimed to have distributed seeds of moong, urad, lentil, coriander and potato free of cost among a select 1,355 sugarcane growers for the promotion of subsidiary crop.

Prem Lal Singh, the assistant director of sugarcane industry whose office is on the premises of Tirupati Sugar Ltd factory, told The Telegraph: “I have joined office in July, but have heard from several farmers that they did not receive seeds from the sugar factory management.”

Tej Pratap Singh, a member of the zonal development council (sugarcane) Ramnagar, said: “The sugar factory owes about Rs 40 crore to the farmers. Instead of paying them, the officials duped the farmers and the government as well.”

Deputy director (sugarcane) Shailendra Kumar, who is based in Motihari, said, “We have sought the certification and physical financial reports from the assistant director. There should be a thorough inquiry into the entire episode.”

But the farmers are not willing to wait longer for justice. “The chief minister is set to embark on his Sewa Yatra from Valmikinagar on November 9. We want that the probe to get over by then. Or else the sugarcane growers’ will intensify their protests,” said Yugal.