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BBUNL group cos default on statutory payment -- Centre seeks plan to settle huge dues

Our Bureau

CALCUTTA, Dec. 5

THE defaults in statutory payment obligations of seven ailing public sector units under the fold of Bharat Bhari Udyog Nigam Ltd (BBUNL) have mounted to Rs 128.56 crores with over 1,300 retired workers in these units having to go without their dues.

Alarmed at the situation, the Union Ministry of Heavy Industries has asked BBUNL to immediately formulate an action plan to liquidate the dues while ensuring that there are no fresh cases of defaults. The components of these statutory dues are PF, ESI, p ension, bonus and gratuity, besides normal salaries and wages.

Informed sources said that among the nine engineering companies in the BBUNL group, barring two, all were defaulters with Jessop heading the list. Burn Standard was another major defaulter. Together, they accounted for 92 per cent of the total arrears.

The other defaulters are Braithwaite, Bharat Process & Mechanical Engineers, Weighbird India, Bharat Brakes & Valves and Reyrolle Burn. The companies which do not have any outstandings are Bharat Wagon and Engineering and Burn Braithwaite and Jessop Ltd.

Referring to Jessop, sources said that 1,062 employees of this company had retired till September 30, without receiving their statutory dues. Wages were in arrears and none of the 2,863 persons currently employed have been paid their statutory dues.

As for Burn Standard, which has a total liability of Rs 40.84 crore, of the total 7,385 employees, 251 had to retire without getting their dues. While both these companies are under BIFR, Jessop's revival plans, under implementation for nearly three year s now has failed and efforts are now on to sell the company as a going concern.

Referring to Braithwaite, another BBUNL group outfit under BIFR, sources said that with total dues of Rs 4.35 crore and current liabilities of Rs 43 lakh, it was relatively better placed. However, Braithwaite does not have any salary outstanding and its arrears are mainly on account of its Rs 3.92 crore PF liability.

Bharat Brakes, with an employee strength of 394, had a default of Rs 2.89 crore which was mainly on account of a Rs 2.6-crore PF default.

Bharat Process, with an employee strength of 176, had an arrear of Rs 46 lakh with an ESI default of Rs 33 lakh.

Reyrolle Burn, employing 198 persons, had only PF default amounting to Rs 59 lakh.