Pune: The Yashwant Cooperative Sugar Factory in Theur, Taluka Haveli, which has been closed for 13 years due to heavy debt, has recently proposed selling 117 acres of its land to the Pune Agricultural Produce Market Committee (APMC) to repay its outstanding loans.
The proposal follows a resolution passed in 2012 to sell part of the factory’s land. Despite this, a dispute has emerged within the factory's board, with some directors opposing the sale without holding a new general meeting.
After holding elections in March 2024, a new board of directors took charge of the factory. However, efforts to revive the defunct sugar mill have yet to materialize, and internal disagreements have now come to the forefront.
Several board members have accused Chairman Subhash Jagtap of unilaterally pushing the land sale without discussing it in the board’s recent monthly meetings.
This move has caused friction, as some directors believe the decision to sell the land should be reconsidered by the full membership of the cooperative in a fresh general meeting.
The Yashwant Cooperative Sugar Factory owns a total of 251 acres, out of which it has proposed selling 117 acres to the Pune APMC for the development of a sub-market in the region.
The factory has been struggling with debts owed to banks and financial institutions for several years, and the chairman is hoping that the sale will generate enough funds to settle these obligations. In 2012, a special general meeting approved the sale of surplus land, and the Maharashtra government’s Cooperative Department sanctioned the sale.
Opposition within the board has arisen, with directors like Shyamrao Kotwal and Sagar Kalbhor accusing the chairman of bypassing required procedures, such as involving the Sugar Commissioner’s office in conducting the land auction.
They argue that any sale should be governed by the 2012 agreement, which required strict oversight and member approval. They further stress that new challenges require a fresh resolution from cooperative members before such a significant transaction can proceed.
Amid the leadership dispute, Chairman Subhash Jagtap has defended the proposal, stating that the sale is essential for saving the factory from further financial ruin. “We have outstanding payments to the bank as well as to farmers and employees.
Our goal is to settle the debts through a One-Time Settlement (OTS). If we can arrange ₹110 crores under OTS, we can avoid the bank auctioning the land. The DRT court has already issued orders to auction the property if the settlement fails. No one benefits from that scenario.
That’s why I have proposed the sale to the Pune APMC to help restart the factory,” said Jagtap, adding that there was no opposition in the board’s monthly meeting.