Surat: The National Cooperative Development Corporation (NCDC) has taken symbolic possession of seven separate properties of Kantha Sugar after Shree Kantha Vibhag Sahakari Khand Udyog Mandli Ltd. failed to repay outstanding dues of ₹49.40 crore. The NCDC is likely to auction these properties in the coming days to recover the pending loan.

Currently, Kantha Sugar’s operations are being managed under a custodian. The Gujarat government had earlier provided ₹30 crore in financial assistance to revive the sugar mill. Despite this, the mill has remained non-operational for several years. NCDC had issued a notice on May 15, 2025, demanding repayment of the outstanding loan, including interest, within 60 days. When the Kantha Sugar management failed to comply, NCDC took symbolic possession of the properties on August 30, 2025, and is now expected to proceed with an auction to recover the dues.

According to the custodian, the estimated market value of Kantha Sugar’s mill, land, and other assets is ₹140 crore, significantly higher than the pending NCDC loan of ₹49.40 crore.

Financial Overview of Kantha Sugar:

• Outstanding NCDC loan: ₹49.40 crore

• Share capital: ₹40 crore

• Amount pending to pay farmers for sugarcane: ₹7.44 crore

• Loan from Gujarat government: ₹30 crore

• Total dues to be paid: ₹127.44 crore