93-acre land sale proposal of Terna sugar factory approved amid mounting debt burden

Chhatrapati Sambhajinagar: The Dharashiv District Central Cooperative (DCC) Bank has approved a proposal to sell about 93 acres of land belonging to the Terna Shetkari Sahakari Sakhar Karkhana as part of recovery proceedings, citing the sugar factory's failure to repay outstanding loans amounting to hundreds of crores.The decision was taken at a board meeting earlier this week. The land parcel, measuring 37 hectares and 53 R (about 93 acres), has been identified for sale as the factory's dues to the bank continue to mount despite the unit being operational. The Terna sugar factory is currently run by Bhairavnath Sugar, linked to former minister Tanaji Sawant.DCC Bank chairman Bapurao Patil said the bank had sanctioned a loan of Rs 195 crore to the Terna sugar mill in 2000. "So far, the factory has defaulted on loans amounting to Rs 312 crore, while its total liabilities have reached around Rs 415 crore," he said, adding that recovery through existing arrangements has remained negligible.Patil said the bank's board has approved initiating the land sale process, and discussions have started on floating tenders. "The proposal is being sent to state govt for final approval. Once permission is granted, bids will be invited for the sale of the land," he said.The bank currently receives around Rs 6.5 crore annually as lease rent from the factory, but Patil said this was inadequate. "At this pace, recovery will take decades, and the bank will remain in losses. Selling land is the only way to recover at least part of the dues," he said.The DCC Bank is facing a serious liquidity crunch and struggling to repay depositors, Patil said. "The bank's total liabilities are close to Rs 700 crore. Even the Rs 16 crore received so far from Bhairavnath Sugar was deposited into the factory's provident fund account through the same bank, resulting in no effective recovery," he added.Patil also acknowledged criticism that no strong recovery measures were taken in earlier years. "This year, the board has decided to take concrete steps, including the sale of assets, to ensure recovery," he said.The problem extends beyond the Terna sugar factory. The bank has also sanctioned loans worth Rs 195 crore to the Tuljabhavani sugar factory, apart from crop loans, raising concerns about multiple stressed assets. "Even partial recovery will not be enough to cover the total outstanding amount," Patil admitted.With repayments under various loan categories, including sugar pledge loans, remaining unpaid, the bank has decided to invoke provisions of the SARFAESI Act. Officials said tenders for the land sale will be floated after state govt clearance.Calls made to Tanaji Sawant for a comment went unanswered. The decision is expected to have political implications in Dharashiv taluka, where the Terna sugar factory has long been central to local economic and political dynamics.