The Maharashtra government has cancelled the guarantee on loans of over Rs 300 crore taken by seven sugar millsNSE -4.10 % owned by BJP leaders, including Pankaja Munde, an official said on Thursday.
The decision was taken at a meeting of the Uddhav Thackeray-led state Cabinet on Wednesday, he said.
The National Cooperative Development Corporation (NCDC) provides loans to cooperatives and the state government gives a guarantee on it based on some terms and conditions.
"Since these seven sugar cooperatives did not fulfil the conditions put up for the guarantee, the state Cabinet decided to cancel the guarantee," the official said.
These sugar cooperatives did not meet conditions like having a positive net worth and no non-performing assets (NPAs) or liabilities, he said.
Credit- ET
