Tea Board cites BIFR on takeover problem

SNS | Kolkata | 06 February, 2016: After being asked by the Centre to take over the management control of seven gardens of the G P Goenka-headed Duncan Industries in north Bengal, Tea Board has said that it is unable to do so since the matter has been referred to the Board for Industrial and Financial Reconstruction (BIFR). Its missive to the state government for settling the dues has resulted in confusion, with the state putting the onus on the Centre for clearing the mess it has created.“Since Centre took the responsibility of acquiring the tea gardens without going through the legalities, it is now its responsibility to pay the dues of the workers. We want the Centre to ensure all benefits that the workers are entitled to are given to them,’’ said Mr Partha Chatterjee, state Parliamentary affairs minister, at Nabanna on Friday.

Meanwhile, Justice Dipankar Dutta on Friday released the Duncan Tea Estate matter on personal grounds. Justice Dutta stated that he had in the past represented Duncan Industries when they had labour issues. The matter will now be placed in the Chief Justice’s office.

The CJ’s office will decide which Justice of Calcutta High Court will hear the matter. Duncan had challenged the notification of the Centre to take over six of their tea estates and moved Calcutta High Court on 3 February 2016 stating that they have the infrastructure to run the six tea gardens in question. The Centre had authorised the Tea Board to take over the management control of seven gardens of the G P Goenka-headed Duncan Industries in north Bengal.The Union ministry of commerce and industry invoked a rarely used section of the Tea Act of 1953 to take control of the gardens in the Dooars,stating the tea gardens owned by the Duncans are being managed in a manner highly detrimental to the tea industry and to public interest. The gardens, which are officially open but are ailing, can potentially generate 10 million kg of tea and employ 17,555 workers.Chaired by Gouri Prasad Goenka, Duncan, which has 14 gardens in Bengal,has run up mounting dues on salary and statutory benefits. Mr Chatterjee claimed that the Centre's intervention had come at a time when the state government had taken a host of steps for improving the condition of the tea garden workers and come up with a Rs 100 crore financial package for their welfare.

In a letter issued on 29 February by the Tea Board to the state chief secretary Basudeb Banerjee, it has stated that all the seven tea gardens of Duncans is under the BIFR and so section 16E of the Tea Act cannot be invoked. "Unless the leave is obtained from BIFR, the Board will not be in a position to acquire control of the estates", read the letter. For the time being, the Tea Board has directed Duncans to honour the tripartite agreement that it had signed with the state government and the workers' unions and urged that the acquisition directive should not be used as an "instrument" to deprive the workers of their legitimate dues. The state government too has been asked to enforce the agreement for "settlement of dues" and "operationalisation" of the seven tea gardens. It has also hinted at recommending the Centre regarding the acquisition depending on the "demonstrative action" taken by Duncans.