Floor tiles major Regency Ceramics Limited (RCL) declared lock-out of its factory situated at Yanam in the Union Territory of Puducherry effective today, owing to unprecedented violence that occurred at the factory premises.
Labour unrest at the factory of Regency Ceramics turned violent on January 27, 2012, leading to police firing and imposition of Section 144 in the town, causing extensive damage to the plant and machinery and the death of K C Chandrasekhar, president (operations).
According to preliminary estimates of insurance companies, the loss could be over Rs 150 crore. The company has an insurance cover to the tune of Rs 500 crore.
Addressing a press conference in Hyderabad on January 31, 2012, RCL chairman G N Naidu said about 400 workers of the company encouraged and aided by outside anti-social elements indiscriminately attacked employees attending to duty besides torching the plant and machinery, company trucks and buses and killing a key executive.
He said the Puducherry chief minister had ordered a probe into the episode by a deputy inspector general (DIG) of police. The chief minister assured him that a CBI probe would be sought, if necessary, after the DIG team completed its investigation.
Regency Ceramics’ scrip is currently trading at Rs 3.62 on the BSE, down 4.99%, over the previous close of Rs 3.81.