Two directors of NCS Sugars arrested

• Management defaults on payment of Rs 24 crore arrears to farmers
• Allegedly borrowed Rs 22 crore under benami accounts
• Farmers’ agitation leads to police registering cheating case against directors
• Managing director arrested last month by Mumbai police

Vizianagaram: Two of the directors of the NCS Sugars Limited at Lachayyapet under Seethanagaram mandal in the district were arrested on Sunday on the charge of defaulting on paying to farmers for sugarcane the factory procured. The directors - Murali and Srinivasa Rao - had been evading arrest for long.

The management of the factory procured sugarcane from farmers in January, but failed to pay Rs 24 crore to them. The farmers staged a non-violent sit-in at the factory pressing for the payment of arrears to them. But the management remained adamant.

The factory management, the police said, had not only not paid the arrears to the farmers but also borrowed Rs 22 crore loans under benami accounts and diverted the money for other purposes.

The farmers on September 3 went on the rampage, laying siege to the factory. The agitators barged into the factory, smashing the glass panes and furniture in the factory. The police clamped down prohibitory orders under Section 144 CrPC. The farmers, however, intensified agitation by resorting to paralysing traffic on highways by placing bullock carts across the roads.

The district administration, which took serious view of the factory management’s attitude, asked the police to register a case and arrest the directors. As a sequel, two of the directors were arrested. Cases were registered under 406,420, 403, 409 and 120-B against the factory management, according to Superintendent of Police Navadeep Singh. District Collector M M Nayak said Additional SP Rahul Dev was entrusted with the responsibility to investigate into the case.

It may be recalled that the Mumbai police arrested NSC Sugar factory managing director Nageswara Rao last week on the charges of economic offenses.