JACRU raise objection to fresh auction notice of paper mill assets

Nov. 27: The liquidator of Hindustan Paper Corporation (HPC) – Kuldeep Verma, has set Rs 700 crore as the reserve price for the defunct paper mills of Assam at Jagiroad and Panchgram. The two defunct mills in Assam are set to go for e-auction on 24 December, 2021.

Meanwhile, Joint Action Committee for Registered Unions (JACRU) in a fresh letter addressed to the Liquidator on Saturday raised “objection on Auction Notice notified on 25 November, 2021 for selling the Assets of HPCL in  piecemeal basis in contravention to the Order of Hon’ble NCLAT and demanded for review of the Auction Notice & obey the order of Adjudication Authority.”

JACRU stated, “It may be recalled that in the Auction Notice dated 01-06-2021 the Base Value of Assets was Fixed at Rupees 1139 Crores and the Conditions was to sell the Assets as a Going Concern along with Workers / Employees as Per Regulation 32 (e) and by subsequent Auction Notice the Base Value of Assets Reduced to Rupees 969 Crores keeping the conditions remain same as the previous Auction Notice.”

“Paradoxically, to our utter surprise the Liquidator notified the fresh Auction Notice dated 25-11-2021 by drastically reducing the Base Value of Assets including all Core Assets at Rupees 786.18 Crores and that also in Piecemeal Basis disobeying the obligatory Order of Hon’ble NCLAT as no where the Principle of Going Concern & Regulation 32(e) has been given as a condition of Auction as it has been done in two earlier Auction Notice,” added Manobendra Chakraborty, President, JACRU.

In the light of the above, JACRU registered their vehement objection of the Auction Notice & requested the Liquidator  to review the Objectionable Auction Notice to abide by the Order of NCLAT dated 29-05-2019 including modified Order dated 23-07-2019 & subsequent Order dated 26-04-2021 for the interest of protecting the Law of the Land. They requested the Liquidator to response with action taken report within 30 November, 2021 or else the Unions shall be compelled to initiate appropriate steps for the interest of justice and to protect the National Assets along with its workers & employees and for ‘any unwarranted eventualities the Liquidator would be held solely responsible.’

It needs mention here that earlier the Assam government had also sanctioned Rs 570 crore for the employees as part of a relief package.