Uttar Pradesh Chief Minister Mulayam Singh Yadav on Tuesday refuted Congress member of Parliament from Amethi Rahul Gandhi's [Images] allegation that the state government has not paid dues to sugarcane farmers.

The CM claimed that the state government had cleared the payment dues for the previous year and the current fiscal year.

However, he admitted there were dues in 2003-04, but said his party was not in power during that time.

• Rahul targets Mulayam in maiden LS speech

Responding to a notice of propriety given by Congress member Jagadambika Pal and Pramod Tewari in this regard during the Zero Hour in the assembly, he said the state Congress leaders were not providing Rahul the correct information.

Pal and Tewari had alleged that the sugar mills still owed Rs 517 crore to sugar cane farmers.

Accusing the Congress of 'succumbing' to the pressure of industrialists and effecting changes in the state's policies, Yadav claimed his government had never entered into any kind of agreement with industrialists.

He alleged that Pal had written to him for extending favours to an industrialist. He, however, refused to divulge the contents of the letter despite the Congress leader's repeated insistence.

The Samajwadi Party chief also charged the Bharatiya Janata Party with having tacit understanding with industrialists and compromising the interest of cane farmers. Leader of the Opposition Lalji Tandon refuted the charge and urged the chair to expunge the remarks.

On Monday, Rahul, in his maiden Lok Sabha speech, had asked the UP government to clear the cane dues.

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