The state government has temporarily withheld crushing license of Phagwara-based Golden Sandhar sugar mill, previously known as Wahid-Sandhar Sugars Limited, for the current season over the non-payment of pending arrears amounting ₹27.74 crores of farmers of 2021-22 crushing season. This decision has created significant hardship for local sugarcane growers, who are now forced to transport their produce to alternative mills in Nawanshahr, Nakodar, and Bhogpur.
The Phagwara mill courted controversies due to financial anomalies and remained on the radar of Punjab vigilance bureau and Enforcement Directorate, which has already initiated legal proceedings against its former management.The mill has long been mired in controversy regarding financial irregularities and remained on the radar of Punjab vigilance bureau and enforcement directorate (ED). It was previously owned by Shiromani Akali Dal (SAD) leader Jarnail Singh Wahid and UK-based NRI Sukhbir Singh Sandhar. Wahid served as the managing director until 2024. Since 2024, operations have been managed by Rana Sugar Mills Limited, owned by Kapurthala MLA Rana Gurjeet Singh and his son, Sultanpur Lodhi MLA Rana Inder Partap Singh.
On Monday, a meeting was held between district administration officials, the sugarcane commissioner, farmer representatives, and mill management to discuss the outstanding payments. Kapurthala deputy commissioner Amit Kumar Panchal said that the management must submit a detailed proposal for clearing the arrears by December 25.“The next hearing is scheduled for December 26. However, the final decision on whether to revoke or reinstate the crushing license rests solely with the state government,” Panchal said.
Under previous management, the mill accumulated a total debt of approximately ₹40.71 crore over four years. Inder Partap said that since taking over, his group has cleared nearly ₹16 crore as per their agreement. Blaming the government for delays in clearing the remaining balance, he cited the administration’s inability to sell attached properties of the previous owners due to inflated market valuations set by the price fixation committee.
He added that farmers are bearing a heavy financial burden, as the suspension of the crushing license has left them with no choice but to transport their crops to distant mills to sell their produce. In 2022, the Kapurthala district administration attached multiple properties belonging to the mill and constituted a seven-member price fixation committee to oversee the sale of these assets.
