Date:24/08/2003 URL: http://www.thehindu.com/2003/08/24/stories/2003082404650300.htm

Southern States - Karnataka

Jawa staff seek re-tendering of factory property

By Our Staff Correspondent

MYSORE AUG. 23 . The Ideal Jawa Employees' Association on Saturday claimed that 680 workers of the Ideal Jawa Private Limited, which is closed now, were entitled to wages amounting to Rs. 18.9 crore. The association sought the re-tendering of the factory's building, machinery, and guesthouse to pay the dues of employees.

The association, affiliated to the Bharatiya Mazdoor Sangha (BMS), threatened to initiate legal action if the dues of the employees, as recognised by the Labour Commissioner, were not realised through liquidation of the property owned by the Ideal Jawa factory.

It may be mentioned here that the process of liquidating the property of Ideal Jawa Private Limited was initiated after Indian Overseas Bank (IOB) moved the High Court to recover its dues.

The president of the BMS, H.S. Sadashiva, told presspersons here that IOB and the official liquidator appointed by the High Court had fixed Rs. 23 crore as the rate in the tender. "The rate fixed is too low," Mr. Sadashiva contended and sought to re-tender the liquidation process.

He said IOB had given a loan of Rs. 18 crore. "They are claiming Rs. 50 crore, including Rs. 18 crore as principal amount and Rs. 32 crore interest." The bank had filed a case with the Debt Recovery Tribunal in this connection, Mr. Sadashiva said.

The 680 workers of the factory, associated with the Ideal Jawa Employees' Association, had claimed wages amounting to Rs. 18.9 crore under the Industrial Disputes Act 1947. In January 2001, the Labour Commissioner passed an order for payment of wages amounting to Rs. 18.92 crore.

When the then Deputy Commissioner of Mysore district initiated the recovery proceedings, IOB stayed them.

The president of the Ideal Jawa Employees' Association, M.R. Devaraju, said: "The IOB is in the habit of putting hurdles in the legal claims of the workers."

Pointing out that the authorities had fixed the rate of land for residential purpose in Yadavgiri area, where the factory premises was situated, at Rs. 400 per sq.ft., Mr. Sadashiva and Mr. Devaraju argued that the cost of 28.28 acres of the land of the factory would amount to Rs. 49.27 crore.

The cost of the building would be an additional Rs. 74 lakh, they said and added that the machinery would cost several crores of rupees. Even if the land value was calculated at Rs. 200 per sq.ft. for industrial purpose, the cost of the property would be more than Rs. 25 crore, they argued.They said the land value at Lokranjan Mahal Road, Nazarbad, where the factory's guesthouse Krupalaya was located, was Rs. 750 per sq.ft. for commercial purpose. The 44,400 sq.ft. of the land would cost Rs. 3.33 crore, besides the value of building was Rs. 23 lakh. Mr. Sadashiva and Mr. Devaraju said the authorities concerned should re tender the liquidation process by inviting global tenders.

Mr. Devaraju pointed out that the association with 680 members had registered a society under the name, M/s Ideal Jawa (I) Ltd. Workers' Motorbike Manufacturing Multipurpose Cooperative Society. The society had submitted a proposal before the Board for Industrial and Financial Reconstruction (BIFR) to start production. However, the management did not cooperate with the promoters, who had come forward to finance the company to revive it, he added.