MySugar factory in Mandya district.
DH File Photo
Mandya: The Mandya-based public sector Mysore Sugar (MySugar) company is set to initiate legal action before a civil court against its former chairman to reclaim Rs 121 crore, citing alleged losses caused by him.
In connection with this, the company's managing director, M R Ravikumar, has written a letter to Mandya Deputy Commissioner Kumar, requesting information on all movable and immovable properties – including lands, buildings, bank deposits, and share investments – belonging to Nagarajappa and his family members in Mandya district.
Nagarajappa served as the MySugar chairman from 2008 to 2012 and was a close associate of former Chief Minister B S Yediyurappa in Mandya, where the BJP is still working to establish a presence.
During Nagarajappa's tenure as MySugar chairman, allegations arose of him causing financial losses to the company through misuse of revenues. A committee, led by Upalokayukta, investigated the matter and submitted a report, stating that he had incurred a loss of Rs 121 crore. Based on this report, the Commerce and Industries Secretary of the Karnataka government has granted permission to recover the amount by filing a case before a civil court, as mentioned in the letter from the company's Managing Director.
In response to an inquiry, Nagarajappa, who also headed Pandavapura Sahakara Sakkare Kharkhane (PSSK) during the same 2008-12 period, told DH that MySugar, under his chairmanship, actually garnered profits rather than incurring losses. He asserted, "The company management's calculation of interest on the previously accumulated loss may give the impression of a loss during my term. I have not misused any funds of the company."
Nagarajappa further explained, "The powers of nominated or elected chairmen in public sector or cooperative companies are limited. IAS officers wield control there. Chairmen hold ceremonial positions. Recruitment, appointments, contracts, tenders, financial transactions, and others are managed by government officials. Therefore, ideally, the inquiry should be directed towards the officials who served the company during my term."