The Assam government has recently assured the Supreme Court that it will pay ₹70 crore to workers of the Assam Tea Corporation Limited (ATCL) over the next two financial years. This decision comes after the Supreme Court’s stern warning about selling off ATCL’s assets to clear worker dues. Senior advocate Nalin Kohli, representing the state, conveyed the commitment to the bench, stating that an affidavit detailing the timeline would be submitted within two weeks. This article dives deep into the Assam tea corp workers payment.
Background and Context
The Assam Tea Corporation Limited (ATCL) has been grappling with financial instability for years, with its liabilities ballooning to ₹650 crore as calculated by a Supreme Court-appointed committee in 2020. This includes ₹414.73 crore in workers’ dues and ₹230 crore in unpaid provident funds. Despite a 2010 Supreme Court order directing payment, persistent non-compliance led to the filing of a contempt petition in 2012.
In February 2023, the Supreme Court directed the payment of ₹650 crore to 28,556 workers across Assam’s tea gardens, which include the 14 under ATCL. However, the state has consistently struggled to comply, citing financial constraints. During the November 14 hearing, Assam chief secretary Ravi Kota, appearing virtually, informed the bench that the state cabinet had decided against further financial aid to ATCL.
Supreme Court’s Warning and State’s Response
The Supreme Court expressed dissatisfaction with the state government’s stance and remarked that if the state government was unwilling to pump in more funds, it would direct the sale of ATCL’s tea gardens to pay the dues of its employees, including provident funds. This stern warning likely influenced the Assam government’s recent decision to assure the court of the ₹70 crore payment.
Senior advocate Nalin Kohli conveyed the commitment to a bench of justices Abhay S Oka and AG Masih, stating that the amount would be paid within the next two financial years. The court scheduled the next hearing for January 24, 2024, and directed the state to file an affidavit detailing the timeline within two weeks.
Impact on Workers and ATCL
The decision to pay ₹70 crore over two financial years is a significant step towards addressing the plight of workers employed by ATCL. The state-owned entity manages 14 tea gardens, and the payment will help alleviate some of the financial burdens faced by the workers. However, the state government’s financial constraints and the ongoing struggle to comply with previous court orders highlight the challenges in fully resolving the issue.
Future Steps and Challenges
The Assam government’s assurance marks a shift in its stance, likely influenced by the court’s pointed observations about its role as a welfare state. The upcoming affidavit detailing the payment timeline will be crucial in determining the state’s commitment to fulfilling its obligations. The court’s decision to consider ordering the sale of ATCL’s assets if necessary underscores the urgency of the situation.
Conclusion
The Assam government’s assurance to pay ₹70 crore to ATCL workers over the next two financial years is a positive step towards addressing the long-standing issue of unpaid dues. However, the challenges of financial constraints and the need for a concrete payment scheme highlight the complexities involved in fully resolving the matter. The upcoming court hearing and the state’s affidavit will be critical in determining the future course of action.
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FAQs about Assam Tea Corp Workers Payment
What is the amount assured by the Assam government to ATCL workers?
The Assam government has assured ₹70 crore to ATCL workers over the next two financial years.
What led to the Supreme Court’s warning to the Assam government?
The Supreme Court warned the Assam government about selling off ATCL’s assets to clear worker dues due to the state’s financial constraints and non-compliance with previous court orders.
When is the next hearing scheduled by the Supreme Court?
The next hearing is scheduled for January 24, 2024.
What is the significance of the ₹70 crore payment for ATCL workers?
The payment will help alleviate some of the financial burdens faced by the workers and address the long-standing issue of unpaid dues.
What challenges does the Assam government face in complying with the court’s orders?
The state government faces financial constraints and struggles to inject additional funds into the loss-making corporation.
