The mill, that was to be revived by the end of 1997 following intervention by the Supreme Court on July 8, 1996, has been mired in controversy due to persistent violation of the court directives at the Centre and the state level. The matter has come to such a pass that the division bench consisting of Justice S Saghir Ahmad, Justice GB Pattanaik and Justice Jaganaddha Rao have directed that the matter be listed for further hearing.

The review petition was filed before the Supreme Court by president of Ashok Paper Mill Kamgar Union Umadhar Singh, ex-MLA, who has been fighting the legal battle for revival of the mill for the last 15 years.

Citing examples of the violation of the Court order, Singhmaintains that after the takeover of the paper mill by the promoter company two years ago, the entire workforce of the mill is yet to be absorbed.

The Supreme Court in its order dated May 1, 1997 mentioned that: "It is hereby directed that the authorities should ensure the implementation of the scheme framed by the Government of India and approved by this court. If anyone stands in the way by surreptitious technicalities in the implementation of the scheme, it is hereby made clear that such technicalities would not stand in the way of the implementation of the scheme and the same will be seriously dealt with."

Singh said the finance secretary in his report to the monitoring committee has also blamed the NCFL for deviating from the scheme approved by the Supreme Court.

The ministry has remarked that the promoter "by raising various issues from time-to-time regarding sanction of term loan/working capital etc is trying to justify the delay in the revival of the mill." It was also announced last year thatthe revival package of the paper mill will cost about Rs 504 crore. Surprisingly, promoter Noveau Capital & Finance Ltd (NCFL), that initially agreed before the Supreme Court to take over the mills in the private sector, has not furnished any personal guarantee for working capital from the United Bank of India as formulated by the Supreme Court.