1. Govt decides to shut 3 HMT units, offer VRS to employees

Govt decides to shut 3 HMT units, offer VRS to employees

The decision to shut down HMT Watches, along with HMT Chinar Watches and HMT Bearings was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

By: | New Delhi | Published: January 6, 2016 3:01 PM
HMT watches shuts

The decision to shut down HMT Watches, along with HMT Chinar Watches and HMT Bearings was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi. (Photo: www.hmtwatches.in)

Government on Wednesday decided to close three unviable units of HMT including the once popular HMT Watches, along with HMT Chinar Watches and HMT Bearings, by offering an “attractive” voluntary retirement scheme (VRS) to the employees as per 2007 pay scales.

“With a cash assistance of Rs 427.48 crore, the three loss making subsidiaries of HMT Ltd, namely HMT Watches, HMT Chinar Watches and HMT Bearings will attain closure after separation of about a thousand employees through attractive VRS/VSS and settlement of their dues,” an official statement said.

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

The CCEA has “given its approval for offering attractive VRS/VSS packages at 2007 pay scales to mitigate the hardships being faced by the employees of HMT Watches, HMT Chinar Watches and HMT Bearings and close their operations,” the statement said.

The movable and immovable assets of the companies will be disposed of as per the Government policy.

The Cabinet had earlier given in-principle approval for shutting down five PSUs under the Heavy Industries Ministry including the three units of HMT, Tungabhadra Steel and Hindustan Cables after which the individual proposals entailing VRS etc. of the company were firmed up for the CCEA approval to go ahead with the closure formalities.

The CCEA had approved the individual closure proposal of Tungabhadra Steel last month.

There are 31 CPSEs under the Department of Heavy Industry engaged in manufacturing, consultancy and contracting services. Out of these, 12 are making profits. The remaining 19 CPSEs are incurring losses.

The Department of Heavy Industry has been undertaking appraisals of each loss making CPSE to assess the prospects of revival.

As a part of this exercise, the loss making CPSEs having the potential of turn around are revived and those found chronically sick are disinvested or closed down after payment of due compensation to employees.

Tags: HMT
  1. A
    Jan 16, 2016 at 6:59 am
    It is really Incredible India where the poor employees of a CPSU, Tyre Corporation Of India Ltd ( 100% owned by DHI-GOI) remained Unpaid for the last 39 months, despite clear instruction to DHI by Calcutta High Court in order dated 20/03/2014 to make the payment to the employees directly. The poor employees of Tyre Corporation Of India Ltd,remained unpaid for the last 38 months ,only because DHI-GOI, failled to make thepayments to the unsecured Creditors as per the judgement of Calcutta High Court dated 20/03/2014 within the stited time frame as set by the court following the appeal of DHI to vacace the order of Liquidation by the said court dated 291/11/2013 despite the court allowed several dates to DHI –GOI to make the payments till july2014 & finally thecourt issued the order of dismissal on7/08/2014 to the appeal of DHI. But the poor employees remained unpaid since Nov 2012 for they are no longer responsible because the order of liquidation could not be imposed if TCIL was not dragged out of the purview of BIFR (SICA ) in February 2013 by the DHI in the pretext of revival of TCIL through Disinvestment. And finally in lieu of disinvestment the DHI- GOI dragged TCIL to liquidation, leaving the employees just thrown in the street with their family members without paying their ry (Since NOV 2012 )& all other statutory dues, retirement benefits in the most inhumane way on behalf of a Model Employer- This is a serious violation of of Article 12,14.19,298 &300A by a Model Employer DHI-GOI. ORDER SHEET IN THE HIGH COURT AT CALCUTTA Civil Appellate Jurisdiction ORIGINAL SIDE ACO 40/2014 ACO 42/2014 APOT 125/2014 CP 84/2013 TYRE CORPORATION OF INDIA LTD(NOW IN LIQN) -ANDUNION OF INDIA -VSO. L . & ANR BEFORE: The Hon'ble JUSTICE ASHIM KUMAR BANERJEE The Hon'ble JUSTICE ARIJIT BANERJEE Date : 20th March, 2014. Mr.Somnath Bose, Advocate Mr.B.P. Bandapadhyay, Advocate for the appellant. Mr.Ranajit Chowdhury, Advocate for the Official Liquidator. Mr.Susanta Dutta, Advocate Mr.G.C. Roy Chowdhury, Advocate for the workers. Ms.Sapna Choubey, Advocate Mr.S.C. Prasad, Advocate for the respondent no.2. Mr.Anuj Singh, Advocate for the supporting creditor. The Court : The appeal is barred by 73 days. Sufficient cause being shown, delay is condoned. The appeal is taken on record. ACO 40 of 2014 is disposed of without any order as to costs. 2 This appeal would arise out of an order of winding-up of Tyre Corporation of India Limited. It is too unfortunate to notice, this company would face the second winding-up. Inchek Tyres earlier was wound-up. Subsequently, the Central Government took it over that gave birth to Tyre Corporation of India Limited, a Government company. The net worth of the company became negative that gave rise to a proceeding before BIFR. Ultimately, the company could make their net worth positive through investment by the Central Government. Mr.Bose appearing for the appellant would contend, the Central Government has already invested Rs.800 crores in this company. The unsecured creditors have still not been paid. At their instance, the learned company Judge ped the order of winding-up. Hence, this appeal by the Central Government. Neither the company has preferred any appeal nor the workers. The Union of India would contend through Mr.Bose, they would go for a disinvestment plan and after it becomes successful, they would clear off the dues of the creditors. We repeatedly ask Mr.Bose to give a definite date by which the unsecured creditors would be paid. He could not. His supporter Mr.Sustanta Dutta appearing for the workers would strenuously contend, the order of winding-up would seal the fate of the workers. According to him, the Government already sanctioned a substantial sum earmarked for payment to the workers on account of their arrear wages. Unless the order of stay is granted, the workers would be deprived of such amount. It is most unfortunate. However, we are constrained to observe, in absence of a 3 definite commitment from any corner with regard to payment to the creditors, the order of winding-up cannot be sta. Such prayer is refused. ACO 42 of 2014 is dismissed without any order as to costs. This order would, however, not preclude the Central Government from paying the workers directly, if they so desire. However, the company or the Official Liquidator would not be in any way responsible for the same. The appeal would be heard. The parties are already represented by their respective Advocates. Hence, service of notice of appeal upon them is dispensed with. The appellant is directed to file requisite number of informal paper books incorporating all the papers used before the learned single Judge within four weeks from date. As soon as paper book is filed, place it for hearing. In default, place it for final order. (ASHIM KUMAR BANERJEE, J.) (ARIJIT BANERJEE, J.) sd/ And despite the above order of Honorable Calcutta H.C the DHI –GOI had not made any move to make the payments to its own Payroll employees & issued a letter as follows- D.O. No.5(10)j2015-PIE-VI _ -MInister of r3Pl- Heavy Industries & Public Enterprises Government of India ~ JRIit aRa 11. 1fta ANANT G. GEETE NOV 2 15 Dear Shri Tapan Ji, Please refer to your DO letter dated 7th September, 2015 in response to our D.O. letter dated 3rd September, 2015 on non-payment of the employees of the Tyre Corporation of India Limited (TCIL),Kolkata for almost 24 months. 2. The matter has been examined. As you are aware, Calcutta High Court vide its judgement dated 29.11.2013 ordered for winding up of the company and appointed an Official Liquidator to take possession of all the ets and properties of the company now in liquidation and take charge of its books, records, doents and transactions. The Government filed an appeal in Calcutta Court for stay on the judgement dated 29.11.2013. The application was dismissed vide Court order dated 07.8.2014. 3. In pursuance of Kolkata High Court' order dated 29.11.2013, the Official Liquidator has sealed the company and taken charge of all its books, records, doents and transactions. All the liabilities of the company including ry, wages and statutory dues of the employees is to be settled by the Official Liquidator from the proceeds of the ets of the company in accordance with the Companies Act. In view of the above, the dues of the employees including ry and wages are to be claimed from the Official Liquidator as per law. 4. I hope you would appreciate the situation. With regards, Yours sincerely, (Anant G. Geete) Shri Tapan SEm, Member of Parliament (Rajya Sabha), 13-1, Rouse Avenue, NewDelhi-110002. Office: Room No. 176, 'E'Wing, 1st Floor, Odyog Shawan, New Delhi-110 011, Tel.: 91-11-23061339 _ Delhi ResL: 10, Raisina Road, New Delhi-110001, Tel.: 91-11-23736393,23737810 MIIITlh::ai R_- . 501 Sanskruti Co 0 oHsin(] Soc.iAhl Qar: Road VilA l:2arleLEast} Mumbai-4000!i7 And the poor employees moved to Calcutta High Court to get their statutory dues from the DHI-GOI. Accordingly the Honorable Calcutta High court considered the cases very sympathitically & issued the valued order dated 1/12/2015 wherin the present stand of the GOI towards making the ry & other statutory dues of the poor employees found to most unsatisfactory and that is as follows : - IN THE HIGH COURT AT CALCUTTA Original Jurisdiction ORIGINAL SIDE CA No.593 of 2015 CP No.84 of 2013 TYRE CORPORATION OF INDIA LTD. -Versus- MR. DIPAK SAHA -ANDRABINDRA LAL DATTA & ORS. CA No.390 of 2015 CP No.84 of 2013 TYRE CORPORATION OF INDIA LTD. -Versus- SATISH KUMAR JAIN -ANDOFFICIAL LIQUIDATOR. Appearance: Mr. Asish Kumar Roy, Adv. Mr. Sonia Sharma, Adv. ...for the peioners. Mr. Kumar Jyoti Tiwari, Adv. ...for the Central Government. ...for UCO Bank. Mr. S.S. Bose, Adv. Mr. Siddhartha Banerjee, Adv. Mr. K.L. Yadav, Adv. Ms. Amrin Khatun, Adv. ...for the applicant. Mr. Ranajit Chowdhury, Adv. Ms. Three Dasgupta, Adv. ...for the official liquidator. BEFORE: The Hon'ble JUSTICE SANJIB BANERJEE Date : December 1, 2015. The Court : C.A.No.593 of 2015 is an application by some erstwhile employees of the company (in liquidation). The applicants claim that their dues of about Rs.8 crore till the date of the company being wound up have not been paid despite the 2 company, at the time of its liquidation, being a Central Government undertaking. It appears that pursuant to a Nationalisation Act of 1984, a privately-run company was taken over by the Central Government for the purpose of ensuring that the employees of the company were not jeopardized by the imminent closure of such company. Under the Central Government’s management, the company (prior to its liquidation) operated two prinl units at Tangra and Kankinara. In or about 1990 a reference pertaining to the company was made under the Sick Industrial Companies (Special Provisions) Act, 1985 and the Board for Industrial and Financial Reconstruction (BIFR) recommended that for saving the Kankinara unit of the company it was necessary that the land and the entirety of the Tangra unit should be sold. The Tangra unit was, accordingly, sold. The company has been wound up on November 29, 2013 on a creditor’s peion. In an affidavit filed by the Central Government, its stand is that a sum of Rs.11 crore was apparently sanctioned for payment of the employees of the company and to some creditors, but since such amount was not expended within the time, the grant has lapsed. Prima facie, it is unacceptable that a company managed by the Central Government will leave its employees and workmen in 3 the lurch by washing its hands off and saying, just like a private entrepreneur, that the dues of the employees should come out of the ets of the company (in liquidation). If the Central Government intervened and took over the management of the company by a Nationalisation Act, ostensibly to ensure that the employees were not jeopardized by the imminent closure of the units, it appears, tentatively, that the Central Government will remain liable to pay the dues of the employees. In particular, the stand taken by the Central Government that its grant had lapsed cannot be appreciated. Let a copy of this order be reached to the Ministry of Heavy Industries for the Secretary in such Ministry to indicate the further stand of the Central Government in such regard and as to whether the Central Government will provide funds for the payment of the dues of the erstwhile employees of the company. It may also be permissible for the company Court to involve the Central Government in the process of the of the ets of the company (in liquidation) to ensure that the best price therefor is obtained for settling the claims of the creditors of the company (in liquidation). Let the application appear six weeks hence. There is a second application, C.A.No.390 of 2015, where the prayer is for a Daryagunj flat in Delhi let out to the company (in liquidation) to be disclaimed in favour of the owners thereof. 4 Ordinarily, the company Court does not indulge in the practice of obtaining money for the company (in liquidation) for any property to be released in favour of the landlord or the owners. But if the Central Government can wish away the claim of the employees of a Central Government undertaking, the company Court may also resort to the innovative mode of demanding money from a landlord or the owner of any property before releasing the same. Urgent certified website copies of this order, if applied for, be supplied to the parties subject to compliance with all requisite formalities. (SANJIB BANERJEE, J.) A/s. And it so heart rending for the employees that even after the above order the DHI-GOI had not taken any positive initiative to make the payments to the employees of TCIL & Myself Apurba Saha Hazra( Sr Officer-Technical in TCIL) herewith drawing your valued attention to the subject matter and requesting the favor of your valued sanction to the TCIL file moved by DHI(GOI) seeking the approval of Ministry Of Finance, lying with the concerned Undersecretary(MIF) since Apr 2014.And unless your good self releases the requisite approval for TCIL,Kolkata,our family comprising my mother(cardiac Patient,70yrs. Old),wife (M.A,B.ED-house wife),daughter(student of B.Tech-Textiles) and my son (student of cl X,in a reputed Public School), facing abject poverty as well as severe mental agony following sever financial crunch due to nonpayment of our ry since Nov.2012. And it is pertinent to mention that myself is the only earning member of my family now being totally embarred at this stage after my 23 yrs. Sacred service to a CPSU since 1992 when I joined TCIL through an all India basis Exam. Under two yrs Training on Tech.Service and five yrs Post Training Bond service during the execution of a Rs123 crs new Project that received no working capital. And we people are being rammed between Governments indecision and soaring inflation/higher marker price of essential commodities for we are being paid in 92 pay Scales despite having approval for 97 pay scale by CCEAdt16/11/2008 wef. 1/04/2008 as incorporated in our DRS dt March2010.. Apropos to above situation we especially requesting all the Parliamentarians of both the Loksabha & the Rajyasabha & the Honorable Prime Minister including the CCEA members to chalk out some effective measures immediately to resolve the issue in line with the stand as taken by CCEA in case of other Sick CPSUs namely Hindustan Cables, Hindustan Photo Films Ltd, & recently for HMT. Hope the good sense will prevail in the GOI-DHI & will act upon accordingly to restore its Peoples Face fot the sake of HUMANITY as well as Vibrant Democracy. At the same time all the Electronic Medias, Print Medias & social Medias those all consuents of the fourth Pillar of our Vibrant Democracy in india should stand by the poor employees of TCIL and should urge upon the GOI –DHI &PMO towards resolving the matter at the earliest.
  2. D
    D M
    Jul 24, 2016 at 7:44 am
    What is the formula of attractive VRS at the time of closure of PSU unit. Pl give detail, our co. Hind. Org. Chemical Ltd is declared for closure in BIFR hearing how we can get attractive VRS
  3. P
    Jan 6, 2016 at 4:00 pm
    One day pak will drop nuclear bomb on India and kashmir matter will come to an end.

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