Madhya Pradesh Commercial Tax Minister Babulal Gaur informed the assembly that an inquiry would be launched into suspected irregularities in withdrawal of about Rs1.40 crore from the Jawaharlal Nehru Cooperative Cotton (JNCC) Mill in Khargone.
Gaur added that the funds should be given back to customers.
Following an order from Speaker Ishwardas Rohani, he promised an in-depth investigation in the case.
In a written explanation, the minister said, in 2002-03 and 2003-04, the mill was returned Rs1.40 crore after the clearance of seven appeal cases.