On March 28, 2002, the MP state cabinet gave an in-principle guarantee to the Maheshwar project for publicbonds worth Rs. 330 crore to be issued by S.Kumars, the promoters of the Maheshwar Project. This guaranteecame when no less than the CAG of India had pointed out that S.Kumars owes several MP state agencies, such asMPEB, NVDA, MPSIDC, several tens of crores of rupees in payments, and orders had been passed by the districtadministration of Khargone for the confiscation of the movable properties of the Maheshwar project. The IFCIreappraisal note of March 2000 clearly documents that S.Kumars had diverted Rs. 106.4 crore of public moneyadvanced for the Maheshwar project, to agencies that neither had any contracts for the project nor did anywork for it. In fact, the Ministry of Finance had refused to give the project any further public monies fromIndian public financial institutions and banks in light of the fact that S.Kumars as well as the MP stategovernment were persistent defaulters.