The TUNGA BHADRA SUGARS (DEVI SUGARS) LIMITED (ACQUISITION AND TRANSFER OF UNDERTAKING) (REPEAL) ACT, 2001

THE TUNGA BHADRA SUGARS (DEVI SUGARS) LIMITED (ACQUISITION AND 
TRANSFER OF UNDERTAKING) (REPEAL) ACT, 2001 
ARRANGEMENT OF SECTIONS 
Statement of Objects and Reasons 
Sections: 
 1. Short title and commencement 
 2. Repeal of Karnataka Act 1 of 1999 
 
STATEMENT OF OBJECTS AND REASONS 
The Governor of Karnataka promulgated the Tungabhadra Sugars (Deve 
Sugars) Limited (Acquisition and Transfer of Undertaking) Ordinance, 1998 to acquire 
and transfer the undertaking of Tungabhadra Sugars (Deve Sugars) Limited, Shimoga in 
public interest.  Further it was replaced by the Tungabhadra Sugars (Deve Sugars) 
Limited (Acquisition and Transfer of undertakings) Act, 1998 (Karnataka Act 1 of 1999). 
Neither the provisions of the said Ordinance nor the Act have been brought into force till 
today by appointing a day for commencement. 
 In the meanwhile, the Government designated the KSIIDC as the agency to 
prepare the Schedule of assets and liabilities and to determine the net worth of the said 
company. KSIIDC in turn engaged TECSOK for this purpose. 
 As per the assessment made by TECSOK, the Company has assets to the 
extent of Rs. 2,945.92 lakhs and liabilities to the extent of Rs. 5,272.50 lakhs.  Thus 
there is a huge gap of Rs.2,326.58 lakhs between  the assets and liabilities of the said 
Company. 
 In view of the huge gap between the assets and liabilities of the company, it was 
felt that the process of   Acquisition and Transfer of this unit would be very uneconomical 
and the Government has to shoulder a big responsibility in running this unit. Moreover, 
such practice of acquiring sick unit would open the door for other sick units, which would 
pressurise the Government to acquire them.  Therefore, it is considered necessary to 
repeal The Tungabhadra Sugars (Deve Sugars) Limited (Acquisition and transfer of  
Undertaking ) Act, 1998 (Karnataka Act 1 of 1999). 
 Hence the Bill.     
 (L.A. Bill No. 18 of 2001 - File No. ÉâªÀâXµÖE 18 µÖÉâ}â 2001) 
 
 
KARNATAKA ACT No. 25 OF 2001 
(First published in the Karnataka Gazette Extraordinary on the thirtieth day of August, 
2001) 
THE TUNGA BHADRA SUGARS (DEVI SUGARS) LIMITED (ACQUISITION AND 
TRANSFER OF UNDERTAKING) (REPEAL) ACT, 2001 
(Received the assent of the Governor on the Twenty Ninth  
day of August 2001) 
 An act to repeal the Tunga Bhadra Sugars (Deve Sugars) Limited (Acquisition 
and Transfer of Undertaking)  Act, 1998. 
 Whereas it is expedient to repeal the Tunga Bhadra Sugars (Deve Sugars) 
Limited (Acquisition and Transfer of Undertaking) Act, 1998 (Karnataka Act 1 of 1999) 
for the purpose hereinafter appearing; 
 Be it enacted by the Karnataka State Legislature in the Fifty second year of the 
Republic of India, as follows:- 
 1. Short title and commencement.-  (1) This Act may be called the Tunga 
Bhadra Sugars (Deve Sugars) Limited (Acquisition and Transfer of Undertaking)  
(Repeal) Act, 2001. 
 (2) It shall come into force at once. 
 2. Repeal of Karnataka Act 1 of 1999.- The Tunga Bhadra Sugar (Deve 
Sugars) Limited (Acquisition and Transfer of Undertaking) Act, 1998 (Karnataka Act 1 of 
1999) is hereby repealed. 
 

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