Former Congress leader Arun Yadav's Jawahar Cotton Mill faces auction over ₹24.16 cr debt

Khargone district's Jawahar Cotton Mill, operated by the Jawahar Lal Nehru Cooperative Society, was once a lucrative enterprise that generated multi‑crore profits for its owners. The mill is now burdened with a debt exceeding ₹24.16 crore, including interest, owed to the National Cooperative Development Corporation (NCDC).\n\nThe outstanding amount has prompted NCDC to move for the auction of the mill's assets, signalling a severe financial distress for the cooperative. The move comes as the mill's cash flow stalled and it could not meet repayment schedules despite attempts at restructuring.\n\nArun Yadav, a former president of the Madhya Pradesh Congress and a senior political figure in the state, chairs the cooperative that owns the mill. While Yadav has been associated with the mill's earlier profitability, the current liabilities have placed the facility on the brink of liquidation.\n\nLocal authorities in Khargone and Khandwa are monitoring the situation, and the auction process is expected to be scheduled once legal formalities are completed. The development underscores the challenges faced by cooperative enterprises in maintaining financial health amid rising operational costs.\n\nStakeholders, including former employees and local cotton growers, await clarification on how the auction will affect their livelihoods and the regional cotton supply chain.