RAM NARESH SINGH Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE petitioner is Secretary of Cane Growers Association of Mill Kshetra Ganna Udpadak Sangh, Motihari. He has approached this Court for issuance of direction commanding the respondent nos. 1 to 4 to take immediate steps for disbursement of financial assistance received from the respondent -Union of India to the tune of Rs. 1885 -88 lacs amongst the cane growing farmers of the State towards clearance of their arrears of sugarcane price pending for payment.

(2.) THE Union of India took a policy decision for providing financial assistance to the different States including the State of Bihar by way of soft loan for mitigating the hardships of the sugarcane farmers who were not paid their arrears of sugarcane price by the Sugar Factories Owners. The scheme was approved by the President of India and vide letter dated 29.1.2004, the Cane Commissioner and Finance Secretary, Government of Bihar was informed that proposal to release Rs. 1885.88 lacs as one time assistance to the Government of Bihar has been approved by the President of India to mitigate the hardships of the sugarcane farmers who had not been paid their arrears for the period 2002 -2003, Annexure -3. The Commissioner -cum -Secretary, Government of Bihar vide letter dated 10.5.2004 addressed to the respondent no. 6, the Desk Officer, referring to the package of Rs. 1885.88 lacs granted by the Union of India, informed that the said amount could not be withdrawn by the State and hence the same be revalidated for the next financial year so that amount may be with -drawn in Financial year 2004 -2005 in the interest of sugarcane farmers. The Central Government permitted the Government of Bihar to utilise the said loan amount in the financial year 2004 -2005 for clearing the dues of sugarcane growers subject to the terms and conditions mentioned therein. However, the amount was not disbursed amongst the farmers. Representations were also filed by the farmers to the Chief Secretary for disbursement of the money which has been received from the Central Government by way of financial package for payment of arrears of sugarcane price to the farmers but nothing was done and as such, the petitioner has been compelled to file the writ petition for issue of direction as indicated above.

(3.) A stand has been taken on behalf of respondent nos. 5 and 6 that decision was taken to provide one time assistance to the State Government to mitigate the hardship of the sugarcane farmers who have not been paid arrears of sugarcane price for 2002 -2003 season. The assistance was subject to the conditions that it is one time assistance limited to payment of arrears of the sugarcane price to the farmers. The assistance will be in the nature of soft loan at a concessional interest at the rate of 4 per cent per annum with an initial moratorium of three years and payable three years thereafter. The assistance was contingent upon the State Governments undertaking not to declare SAP for sugarcane in the State in future either formally or informally. The funds released to State Government under the assistance will be placed at the disposal of concerned District Magistrate/Collector in a separate account and shall be paid to the farmer by the District Magistrate on verification. However, on request it was revalidated for utilization in the year 2004. -2005 as per the proposal submitted by the Cane Commissioner. The Cane Commissioner vide letter dated 12.1.2004, gave proposal to Government of Bihar that amount be utilized as per the terms given thereunder but the State Government requested for adjustment and for additional funds of Rs. 58.12 lakh which was not agreed as the soft loan of Rs. 1885.88 lakh was one time assistance and the State Government has been requested to submit fund utilization certificate as per the approved terms.