In a major relief for sugarcane farmers, long-pending dues linked to Netams Sugar Factory at Nagari in Chittoor district have finally been formally recognised under the insolvency process before the National Company Law Tribunal (NCLT).
Speaking to the media here on Wednesday, District Collector Sumit Kumar said that the dues relate to the 2019-20 crushing season and were initially pegged at around ₹35 crore. However, efforts by the district administration to recover the amount ran into hurdles after a creditor obtained a stay during revenue recovery proceedings, effectively stalling the process.
Officials then explored the option of selling the factory to clear the liabilities, but the plan did not take off as the offers received were far below expectations. With limited options left, the matter was eventually pushed into insolvency proceedings, and a resolution professional was appointed earlier this year.
Following detailed submissions by the district administration and representatives of the farmers, the NCLT has now admitted claims worth ₹64 crore. This amount covers 1,650 farmers and includes both the principal dues and accrued interest.
The Collector observed that the administration had been consistently pursuing the issue to protect the interests of farmers and would continue to push for an early resolution through the tribunal process. He described the admission of claims as a crucial step towards ensuring recovery and providing long-awaited financial relief to the affected growers.