DERA GHAZI KHAN: A judicial inquiry in Bhakkar has exposed blatant misuse of funds collected under the Punjab Sugar Development Cess Rules, 1964.

The investigation, initiated by former district and sessions judge Shahid Islam Ghilzai, found widespread corruption, political favouritism and negligence behind the misuse.

A group of farmers had filed a complaint with the Bhakkar district and sessions court on Jan 10, 2023, wherein they alleged that funds collected for their benefit were being diverted to personal and political use.

Led by Civil Judge Tariq Mehmood Gondal, the inquiry uncovered ‘shocking irregularities’ how the cess was collected and spent. Most of the money collected was not transferred to district administrations as required under the law. Instead, a significant portion was unlawfully retained by the Finance Department and spent on projects that benefited local politicians rather than cane growers.

Farmers were forced to sell their produce at low prices to middlemen, often linked to politicians, who evaded taxes. Many farmers faced unauthorised deductions of up to 16 per cent, falsely claimed as quality-related charges.

The inquiry revealed that farmers were made to bear the full burden of the cess, while “sugar mills claimed to contribute but deducted excessively from farmers’ payments. Of the Rs 170 million collected annually, only 15pc reached district administrations, with the rest siphoned off through various deductions. Funds meant to improve infrastructure for sugarcane supply routes were instead used for non-priority projects, including roads leading to politicians’ residences.”

It said farmers and sugar mills, who are required by law to be part of oversight committees, were excluded from key decision-making processes.

In response to these findings, the court issued several directives to address the situation. It ordered an independent audit of sugarcane cess and stopped further transfer of funds to higher authorities.

The court directed the deputy commissioner to use the funds strictly for sugarcane-related infrastructure and to end spending on unrelated projects. It also declared unauthorised deductions and additional taxes on farmers illegal, emphasising the need to protect farmers from further exploitation.

Published in Dawn, November 30th, 2024