Ahmedabad-based Chiripal Group has bought Arunodaya Mill of Morbi, which was closed since last September, for a consideration of Rs 35 crore.
Arunodaya mill was established in the year 1964 and has installed capacity of 40,000 spindles, with yarn processing capacity of 27,000 kg per day.
Total outstanding dues of the mill were around Rs 70 crore. The management deliberately showed the mill as a loss-making unit in order to sell it, according to Krishnasingh Parmar, Vice President, Mill Workers Association.
IDBI sealed the premises to recover the outstanding dues which saw Chiripal Group buying out the mill from the bank, he said.
Chiripal Group has promised to restart the mill and resume operations soon.
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