CHINIOT: Deputy Commissioner Ayesha Rizwan has requested provincial authorities to initiate legal proceedings against the Madina Sugar Mills over alleged environmental violations, delayed payments to sugarcane growers and failure to comply with official directives.
In her letters, the DC urged the director general of the Environmental Protection Agency (EPA), Punjab, and the Cane Commissioner, Punjab, to take strict action against the mill under relevant environmental and sugar industry laws.
The district administration received complaints from farmers alleging that untreated industrial effluents and contaminated wastewater were being discharged into nearby drains and agricultural land, causing crop damage, soil degradation, contamination of irrigation water and posing risks to public health.
A letter further stated that despite repeated notices issued by the EPA, including directives to install pollution control systems and comply with environmental regulations, the mill had allegedly failed to meet mandatory standards.
Factory blamed for environmental violations, delayed payments to growers and failure to comply with official directives
Inspection reports reportedly highlighted the absence of essential air pollution control equipment, use of substandard fuel, failure to maintain environmental records and non-installation of the required online emissions monitoring system. Laboratory findings also showed particulate matter emissions exceeding permissible limits.
In a separate communication to the Cane Commissioner, the deputy commissioner said the mill had failed to clear outstanding payments to cane growers despite assurances made during meetings convened by the district administration.
The letter alleged that some growers had remained unpaid for four to six months and that unlawful deductions had been made from payable amounts despite the issuance of Cane Payment Receipts (CPRs).
The district administration maintained that the mill’s failure to honour its commitments had triggered repeated protests outside the Deputy Commissioner’s Office and created law and order concerns.
The deputy commissioner requested the cane commissioner to probe the matter on priority and initiate legal proceedings against the mill under the Punjab Environmental Protection Act, 1997, the Punjab Environmental Protection (Smog Prevention and Control) Rules, 2023, the Punjab Sugar Factories Control Act, 1950, and other applicable laws.
Chiniot DC Ayesha Rizwan has requested the Federal Board of Revenue (FBR) to initiate an investigation into the financial affairs of the mills following complaints submitted by local sugarcane growers alleging large-scale tax irregularities.
Representatives of growers alleged the mills had been involved in tax evasion through the concealment of actual raw material consumption, production and sales figures, weak maintenance of financial records, and incorrect declaration of stocks, molasses, bagasse and other by-products.
It further alleges that the mill attempted to avoid creating a digital record of its production activities, thereby evading liabilities under various provisions of the Sales Tax Act, 1990, the Federal Excise Act, 2005, and the Income Tax Ordinance, 2001, including sales tax, federal excise duty, withholding tax and advance tax.
The version of Madina Sugar Mills could not be taken despite calls and WhatsApp requests to Liaqat Ali, General Manager-Cane of the sugar mills for his words on the issue.
Published in Dawn, August 2nd, 2026
