RMMS seeks legal action against 3 mills

These, the body alleges, started developing the mill land for commercially viable purposes.

Confirming this, RMMS vice-president Govind Mohite also told mediapersons today that the ongoing public interest litigation (PIL) filed by the Bombay Environmental Action Group (BEAG), on the basis of which the Bombay High Court has issued a stay on further development sanctions for mill properties, would result in further delays to clearing up dues owed by the mills to its workers.

"The three mills""Modern, Kamala and Victoria mills - received sanction from BIFR for reviving the mills through a modernisation plan. However, instead of restarting the mills, the properties have been redeveloped into commercial realty. And the mills have been closed down. We are asking the Maharashtra government to take over the properties of such mills, not for the purpose of running them, but to ensure the workers dues are cleared," Mohite said.

He also lamented the reluctance of several financial institutions that owed huge sums to the mill owners to take a hit on their outstandings.

"Any further delay through litigations will only result in the long pending dues of mill workers being delayed further. We (RMMS) had agreed in 1985 to allow mill owners to sell off a portion of their properties so that the FIs and workers dues could be cleared. But constant litigations, including the current court case, have caused an inordinate delay in this," Mohite added.

Citing instances of such delays, Mohite said that in the case of Hindustan Mills that had an outstanding of Rs 112 crore that it owed to workers, while Rs 56 crore has already been cleared, the balance payments could be jeopardised as a result of the current litigation.

"Similarly, Piramal Mills owed Rs 86 crore of which Rs 56 crore still has to be paid to the workers. Also, under the existing law over 4,000 mill worker tenements located inside mill premises are assured of free 225 square feet housing and the current litigation process may threaten the same," Mohite said. 
 

A clarification

Realty and Textiles Ltd has clarified that it has to compensate only 1,305 workers under a scheme sanctioned by the Board of Industrial and Financial Reconstruction (BIFR). The company has not defaulted on the payment of the compensation amount, estimated at Rs 28.99 crore to be disbursed in seven instalments. The company does not have any mill worker tenements inside the factory premises and the question of providing alternative housing, therefore, does not arise.

Moreover, RMMS, the workers' union, has written to BIFR and to the Maharashtra government that it is satisfied with the compensation payment arrangements.

The clarification is in response to a report published in Business Standard on April 19, which had quoted the RMMS vice-president Govind Mohite to state that the company still owed Rs 56 crore to 4,000 workers, living in tenements inside the mill premises.