Unable to repay bank loans, Assam’s oldest tea company faces closure

Guwahati, Mar 23: Fourteen gardens and factories of Assam Company India Limited, the oldest tea company in the State, are going to be auctioned soon as the company has failed to repay loans taken from banks, reported The Sentinel published from Guwahati.

Assam Labour Minister Pallab Lochan Das described this development as most unfortunate and said the government has no role to play in the entire issue as the banks have already issued notices to the Assam Company India Limited to auction the latter’s gardens and factories to recover the outstanding amount. The banks will complete the auction exercise within the next 180 days.

“Even though we tried our best to prevent the gardens from being auctioned, the management of Assam Company India Limited was least interested,” Das told reporters here on Thursday.

The company’s managing director, Aditya Kumar Jajodia, last year gave an assurance to Pallab Lochan Das that the company would protect the interest of its workers and pay their dues by the end of 2017. Jajodia promised that 80 per cent of the grievances of the workers, such as delayed payment of provident fund and gratuity, would be redressed by the end of 2017.

An increase in wages and salaries, following revision as per agreement, and increase in distribution of food grain because of withdrawal of government support have resulted in increase in the cost of production, a report said.