Saharanpur. Allegations of financial irregularities involving Shakumbhari Sugar & Allied Industries Ltd in Todarpur, including raising loans against assets worth more than ₹150 crore and allegedly diverting additional funds to a private company, will now be investigated at the government level. Following a complaint by one of the sugar mill’s directors, the government has directed the District Magistrate to conduct a detailed inquiry and submit a report. An FIR has also been registered at Chilkana police station against the concerned director and unidentified persons, while the police investigation is continuing.
The complaint alleges that a loan of around ₹25 crore was initially taken for operating the mill. Subsequently, assets of the mill valued at more than ₹150 crore were allegedly mortgaged with a bank, and the existing loan was shifted to HDFC Bank on the grounds of securing a lower interest rate. It is alleged that an additional loan of around ₹30 crore was later obtained against the same property. The complainant claims that instead of being used for the sugar mill’s operations, the additional amount was diverted to a private company.
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The dispute is not limited to the loans and property. The complaint also alleges that additional funds were introduced without the consent of other directors, along with changes in control of the mill and an increase in shareholding. Based on these allegations, the administration will examine the company’s financial transactions, bank loans and documents related to the mill’s assets. Police are also collecting statements and documents from the parties concerned as part of the FIR investigation.
According to the complaint, Shakumbhari Sugar & Allied Industries Ltd is operated through a group involving three directors associated with Mayer Commodities India Ltd, Faith Mercantile Pvt Ltd and RK&D Investment Pvt Ltd. The dispute has emerged over the mortgaging of the mill’s assets, raising of loans and alleged use of the funds.
The complainant stated that the sugar mill had remained closed for nearly 10 years before operations were restarted in 2022. An initial loan of around ₹25 crore was reportedly taken at a high interest rate to restart the mill. Subsequently, it is alleged that the mill’s assets were mortgaged and the loan was shifted to HDFC Bank. The same assets were then allegedly used as the basis for obtaining additional financing.
The complainant claims that the additional ₹30 crore was not used for the mill’s repair, maintenance or operations and was instead allegedly used for the activities of a private company. This has also led to a dispute over the financial management of the mill and the powers of its directors. The allegations, however, will have to be established through the ongoing investigation.
The dispute came further into focus after the bank reportedly issued a notice over non-payment of loan instalments. According to the complaint, the financial difficulties affected repair and maintenance work at the mill. Employees’ salaries were also affected, and the mill could not operate during the current season. The disruption in operations has also had an impact on payments to sugarcane farmers.
According to sugarcane department data, around ₹20 crore in sugarcane payments for the 2024-25 crushing season remains outstanding against Shakumbhari Sugar & Allied Industries. The administrative inquiry will examine the reasons behind the mill’s financial condition and how the borrowed funds and available finances were used. Records related to farmers’ dues and employees’ salaries may also form part of the investigation.
The complainant had filed an FIR at Chilkana police station on July 8, before approaching the government with the complaint. Police said documents have also been submitted by the accused side and are being examined. Legal advice is being sought as the investigation progresses.
Following the government’s directions, the District Magistrate-level inquiry will examine the valuation of the mill’s assets, the process through which they were mortgaged, bank loans, the additional ₹30 crore borrowing and its alleged use. Agreements between the directors, alleged changes in shareholding and decisions relating to control of the mill will also be examined. Further action will depend on the findings of the administrative inquiry and the ongoing police investigation.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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