Don’t miss the latest developments in business and finance.

Centre asks Tata to deduct salary of those overstaying in government colony

The Centre had asked its employees to vacate the accommodation by July 26, six months after AI's disinvestment

Air India
Representative Image
BS Web Team New Delhi
2 min read Last Updated : Dec 28 2022 | 10:25 AM IST
The Centre has asked Air India's management to charge the employees who have been outstaying at the Vasant Vihar colony. It has directed Tata-led airlines to deduct the amount from their salary, a report in the Economic Times (ET) said. 

The government has moved some properties under Air India Asset Holdings Ltd with other properties and is aiming to sell them to pay Rs 60,000 crore of outstanding debt.

The government has two colonies for Air India employees, one in Delhi and another in Mumbai. Around 2,000 employees live in these colonies. The Centre had asked them to vacate the accommodation by July 26, some 6 months after AI's disinvestment. Penalties of Rs 10-15 lakh might also be imposed. 

"Deductions are in the range of upto Rs 95,000 per month. Many employees will not even get a salary after this," an employee living in the colony told ET. Fifty-eight employees of the Air India Engineering Service Ltd (AIESL) have approached the Delhi High Court against the notices for vacating the residential accommodation. 

The residents have asked for more time to vacate the flats as they have families and children who are about to face board exams this year. 

Ministry of Civil Aviation has implemented the scheme for vacating the colonies. An official told ET, "While the case is sub-judice, there is no stay on implementation of scheme."

In October, the water supply of the colony was allegedly cut off.

Topics :Air IndiaTata groupCivil Aviation MinistryBS Web ReportsDisinvestment