Replying to a question raised by Shiv Sena members Subhash Wankhede, Bala Nandgaonkar, Sanjay Band and Gajanan Babar, Raote said during the inspection conducted by the Cooperation department's audit wing, it was found that the factory had placed an order of Rs 13.16 crore with Vikram Projects Private Limited, Mumbai, for supply of machinery.

A cheque of Rs 15.95 crore was issued in the supplier's name. However, the factory received machinery worth Rs 10.10 crore only, Raote added.

The Cooperation Minister said a criminal case has been registered against the then chairperson and board of directors of the factory on February 2, 1999 and simultaneously, a notice under the Cooperative Societies Act has been served on them for recovery of Rs 7.29 crore.

"We haveappointed a special inquiry officer for the purpose and the outstanding amount will be recovered along with interest," the Minister added.

In written reply, Raote also informed that the Vikram Projects Private Limited did not supply machinery to the factory as per the agreement.