Guwahati: The Joint Action Committee of Recognised Unions (JACRU) of Cachar and Nagaon Paper Mills on Wednesday demanded a probe by the Central Bureau of Investigation (CBI) into the alleged embezzlement of Rs 4,141 crore Central funds allotted for the revival of two defunct paper mills at Cachar and Nagaon under Hindustan Paper Mills Corporation.
Nagaon Paper Mill and Cachar Paper Mills have been non-operational since October 2017 and March 2015 respectively and are under liquidation proceedings on account of non-clearance of dues of Rs. 98 lakh and operational creditors as per the order of the National Company Law Tribunal (NCLT), Delhi on November 25, 2019.
“According to a PIB report on July 9, 2019, the Ministry of Heavy Industries and Public Enterprises (MoHIPE) invested Rs 4,141 crore during 2014-15 to 2017-18 for the revival of two paper mills. But during this period operation of both the mills was suspended without any closure notice,” JACRU president Manoabendra Chakraborty and general secretary Ananda Bordoloi said addressing a press conference at Guwahati Press Club here on Wednesday.
“We have written to the Comptroller and Auditor General (CAG) to dig out the whereabouts of Rs 4,141 crore, but till today we have not received any response from them,” Chakraborty said.
“The CBI has lodged an FIR against some officials of the paper mill in another corruption case but the investigation agency is yet to file its chargesheet,” he said.
“JACRU demands in-depth investigation by the CBI under the monitoring of Supreme Court of High Court to find out the truth behind it,“ he said and claimed that the huge fund was not invested for the revival of the two paper mills during this period.
“We want all officials and persons concerned responsible for embezzlement of this huge fund should be published under the law,” he further said.
The JACRU announced that they would resort to a series of democratic agitations from mid-November for full settlement of their demands. The organisation also demanded the revival of the two mills under the Central, state or private sector.
The JACRU sent a one-month notice to Prime Minister, Union minister for labour and employment for settlement of their issues, including payment of pending salaries, provident fund dues with interest accrued and gratuity.
In the notice, JACRU demanded the execution of a Supreme Court order for payment of a provident fund of Rs 285 crore with interest accrued, and execution of higher pension for the odd-employees of the two paper mills.
“Despite Prime Minister, then chief minister and other ministers assurances, 115 employees of the two papers mills attained premature death, many of them committed suicide under various compelling circumstances due to non-payment of salaries and statutory dues, including PF, gratuity,” the notice stated.
“The employer, the central government deducted PF contribution from the salary of the employees and workers but not credited to the PF accounts of employees and workers amounting to Rs. 286 crore.
The Employees Provident Fund Organisation (EPFO) played the role of silent spectator avoiding appropriate action for recovery of PF dues,” the notice also stated.
“The EPFO authority issued a demand notice for payment of Rs. 285 crore on the head of PF and other allied dues. The EPFO and the liquidator of the mills also violated the order of the Supreme Court for recovery of PF, gratuity, pension and other dues from the liquidator in place of the employer,” it further stated.
On March 28, 2022, the Assam government announced that it had acquired HPC’s two defunct paper mills for Rs 375 crore. Assam Industrial Development Corporation (AIDC) was declared as the successful bidder.
In a humanitarian gesture, the Assam Government distributed one-time relief to the employees through a relief package of Rs. 810.02 crore which benefitted benefit 2751 employees of both the mills including 2003 regular employees and 748 contractual workers on July 7, 2022.
On November 16, 2022, the state government issued an expression of interest and notice inviting bidders for a 30-year lease of machinery and land of Cachar paper Mill in Panchgram along with the township.
The notice issued by Assam Industrial Development Corporation (AIDC) also invited bidders for the sale of the plant and machinery of Nagaon Paper Mill at Jagiroad without land on an ‘as is where is” basis
The bidding process started online from November 16, 2022, to January 9, 2023. Later, the date was extended to January 25. But there is no response from the bidders to take over the Cachar Paper Mill.