"The Chief Minister has ordered Cambata Aviation to immediately pay the dues," a statement issued by the Chief Minister's Office said.
The private ground handler has ceased operations in Mumbai and Delhi, leaving scores of employees in the lurch.
The CM and state Legislative Council chairman Ramraje Nimbalkar had held seven meetings with various stake-holders regarding the issue.
"They came to the conclusion that according to Labour laws there should be strict action taken against the company and that the company be given orders to immediately clear all pending dues of employees as well as transfer them to new agency," the statement said.
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State Labour Minister Sambhaji Patil Nilangekar, who had earlier initiated a legal action leading to the seizure of equipment owned by the company, said government has zero tolerance for companies flouting labour laws.
"We want the distressed employees to get their dues. They have been suffering because of the company's inability to run the business. We gave them enough time to settle dues but they have failed to co-operate and so we are taking stringent actions according to the law," Nilangekar said.
Damania had said she and the concerned workers had approached the CM who in turn gave a 10-day period to clear the dues of employees.
"Later, he (CM) got busy with local bodies' elections and the winter session of legislature. So work was held up again," Damania had claimed.
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