PUNJAB CABINET APPROVES ONE TIME SETTLEMENT FOR DEFAULTING RICE MILLERS

PUNJAB CABINET APPROVES ONE TIME SETTLEMENT FOR DEFAULTING RICE MILLERS

Nabaz-e-Punjab Bureau, Chandigarh, August 24:
The Punjab Cabinet on Thursday approved a One Time Settlement (OTS) policy for defaulter rice millers of the state, paving the way for the recovery of a significant portion of the Rs 3500 crore outstanding against them, as per the current market rate, on undelivered rice.
The move is expected to benefit the state exchequer to the tune of Rs 2000-2400 crore, an official spokesperson disclosed after a meeting of the cabinet, chaired by Chief Minister Captain Amarinder Singh.

The defaulters would have the option to pay the entire outstanding principal amount in one go, within a period of 45 days, without having to pay any interest, or to pay in three installments with 10% interest. It was decided by the cabinet that where interest is paid, it should not be higher than the principal amount in any case.
Those defaulters choosing to pay back the principal as a lump sum amount would be entitled to go back to milling from the next season, the spokesperson explained. The decision to announce the OTS was taken after detailed deliberations with all stakeholders, including the agencies and the millers, the spokesperson added.

In the case of undelivered rice, the defaulters would have to deposit the cost of the same on the existing Custom Milled Rice rates. On the other hand, for amount recoverable against other components (except rice) like bardana (gunny bags), quality cut, statutory charges, VAT etc, the option could be principal amount along with simple interest of 10% or principal amount along with 50% cash credit limit rate, as declared appropriate by the competent authority.
According to a spokesperson, there were several rice mills in the state which had failed to deliver their due quota of rice and had outstanding amounts against them, which continued to mount every year on account of compounding interest. These millers had been declared defaulters by the agencies concerned, along with legal/arbitration proceedings being initiated against them as per policy guidelines.