The Hindu Business Line : HC stays arrest of Shishir Bajaj

Chennai, July 10 The Allahabad High Court has stayed the arrest of the Chairman and Managing Director of Bajaj Hindusthan, Mr Shishir Bajaj, and other officials of the company, including his son and Joint Managing Director, Mr Kushagra Bajaj, in various cases relating to non-payment of dues to farmers who supplied sugarcane to the firm.

A division bench comprising Mr Justice Imtiaz Murtza and Mr Justice S.C. Nigam, however, gave two weeks time to clear the dues to the farmers. It also asked the company to pay the dues in line with the Supreme Court’s order on May 15 and June 30.

The arrest of the Bajaj Hindusthan officials was stayed after its counsels, Mr Gopal Chaturvedi and Mr Sikandar B Kochar, agreed to pay the money deducted by the firm for transportation from the dues to the farmers. Bajaj Hindusthan said it had held back an amount of Rs 10.58 a quintal based on the High Court’s orders on April 21 this year. However, the apex court in its order on May 15 asked sugar mills to pay farmers Rs 110 a quintal for the sugarcane they supplied without any deduction for the current sugar year ending September. The order basically upheld the High Court’s Lucknow bench interim ruling in January this year, asking mills pay Rs 110 a quintal until a final judgement is passed.

Bajaj Hindusthan officials had sought a stay on their arrest after a slew of first information reports (FIRs) were filed against them in various police stations in Pilihit, Meerut, Basti, Deoria, Muzafar Nagar districts of Uttar Pradesh. They have been charged with cheating, while FIRs were also filed for contravening various provisions of the Sugar Laws.

Earlier, the counsel for the U.P. Cooperative Cane Union Federation, Mr Ravindra Singh, charged Bajaj Hindusthan with holding back payments to the tune of Rs 53 lakhs. He also pointed out that barring 29 mills, including the 16 owned by Bajaj Hindusthan, all others had paid the dues to the farmers without any deduction.

The case will come up for further hearing on July 29.