Date:08/08/2007 URL: http://www.thehindu.com/2007/08/08/stories/2007080857142000.htm

Business

Dunlop suspends operations at Ambattur

Special Correspondent

Company notice cites ‘trade reasons’ for suspension

CHENNAI: Dunlop India on Tuesday suspended operations at its Ambattur unit here, citing ‘trade reasons’.

“The suspension will be reviewed in due course and thereafter a decision will be taken,” said a notice from Dunlop.

Following this move, the company said “all employees, including the security staff, of the Ambattur factory are exempted from attending work from August 7.”

Consequently, they would not be entitled to any wages, the notice added.

The notice accused the employees of letting down the company and co-operating with VGN Enterprises, which, the Dunlop management alleged, “has trespassed the factory and encroached a large piece of unmeasured land”.

The notice said the law enforcing authorities had not given the company “support or protection in respect of the illegal encroachment.”

VGN for property swap

V. N. Devadoss, Managing Director of VGN Enterprises, however, told The Hindu that the property in question (about 8.3 acres) was bought as part of the 60.86 acres it had acquired through the BIFR (Board for Industrial and Financial Reconstruction) tender process in June 2004. VNG had in its possession all the legal documents for the same, he added. Since the issue had taken a new twist, Mr. Devadoss said VGN was willing to swap the property in question for equivalent land within the said premises.