"We have initiated investigation into the North Brook jute mill incident in specific and 10-odd other jute mills, as there are numerous allegations of wrongdoings there," Jute Commissioner Subrata Gupta told PTI.
He said these mills had secured order to the tune of 70-75 per cent from the government.
"We will take stern action including a ban on a jute mill from getting order from the government, if found guilty," Gupta said.
The Indian Jute Mills Association claimed that lack of order and piling of stocks had led to labour unrest which resulted in the killing of the CEO of North Brook jute mill H K Maheswari.
Gupta, however, acknowledged that there had been some decline in the government order in the previous fiscal, but argued that such things were common in view of the cyclic nature of any commodity including jute.