MP takes stiff stand on closure of Bhilwara unit

The Madhya Pradesh government has said it will take strong action against the "illegal" closure of one division of LNJ Bhilwara Group's Maral Overseas Ltd in the state.

A criminal case under Industrial Dispute Act has also been filed against the company by the state labour department. The unit at Sarovar in Khargone district in the western part of the state has left as many as 1,000 workers jobless.

"A criminal case has been lodged against the company at Judicial Magistrate, Khargone, since the closure has been done without government permission. They had applied for closure of one unit sometime in December but the department had not granted permission," Rajnish Vaish, labour commissioner, Indore, told Business Standard.

"If the labourers come to us we will take further actions to attach the property of the company to pay their dues and salaries. This is an illegal closure and attracts penal action. We will protect labourers' interest since they are still on job in government records," Vaish said.

RK Khandelwal, president of the company, confirmed the closure and said, "We have closed down one garment section of the unit. Approximately 1,000 employees have been laid off."

On being asked if the company had any plans to shift them to other units of the group, he said, "There are no alternative jobs for them."