The Duggars have said that since they are not owners of NTC (New Tobacco Company) but have taken the ailing cigarette company on lease, they feel they are not liable to pay any pre-lease dues and liabilities of the company. The superintendent of excise, Khardah, West Bengal, had issued a show cause notice to the present and the erstwhile owners of New Tobacco Company (G P Goenka's Duncan Agro Industries Ltd and S L Duggar group of companies) on July 3 this year.
The showcause notice had demanded the payment of arrears to the tune of Rs 387 crore for the period between 1973 and 1983.
Explaining their stance, Duggar said, as lessees, we are not liable to cough up money to repay any pre-lease dues or liabilities of the company.
The proposal for lease, which was filed in Calcutta High Court on February 23, 1994, by Prudential Equity Fund Ltd and R D Builders & Developers clearly states: The lessees shall not be liable to make payment pre-lease liabilities of the company, that is, arrears of any of the dues of the company to creditors, secured or otherwise or any statutory liability including dues on account of excise and commercial taxes or otherwise in any manner whatsoever. All such liability accrued prior to the date of taking possession shall be paid by the chairman/ official liquidator regularly, inter alia out of the lease rent so that the business of the lessees is not hampered in any way, continues the agreement.
The lease agreement further adds, the lessee shall make payment of all arrears due and payable by the company on account of provident fund, gratuity wages, salaries and other workers' dues subsisting prior to the date of sanction of the lease in such instalments as may be decided by the Court provided t.asp"-->
