As the government has frozen the accounts of Binani Cement for non -payment of tax, the company has no option but to suspended operations at its two plants in the state in Sirohi and Sikar districts. The state government has frozen 26 bank accounts under the VAT Act for recovering tax dues from 2007.
Demanding relaxation from the Rajasthan government, the company has asked to allow payment in 36 monthly installments. The company has a due of Rs154.51 crore left to be paid. R.S. Joshi, President, corporate affairs of Binani Cement, said that the fate of over 3,000 employees and their families now rest with the state government because with no production and sales at both the units, they are grappling with the challenges of living with mounting expenses. "The company is not able to bear operational cost, transportation and other expenses because of the freezing of our accounts by the government. Suspension of operation at both the units also caused a revenue loss of Rs 60 crore to the government and the rate of cement also jumped by 24% in one month after the production at our two units was stopped," he stated.