Guwahati: The Assam government has assured the Supreme Court that it would pay Rs 70 crore to the employees of the state-owned Assam Tea Corporation Limited (ATCL) over the next two financial years.
The apex court, during a hearing on November 14, directed the Chairman and Managing Director of Assam Tea Corporation Limited (ATCL) to submit the details of all the property of ATCL, including both immovable and movable property, to generate funds for settling the outstanding dues of approximately Rs 70 crore to the corporation’s employees.
The bench comprising Justice Abhay S Oka and Justice AG Masih Court directed the ATCL to file a detailed affidavit by December 7, listing all of the corporation’s property, to facilitate potential asset liquidation if required.
Senior advocate Nalin Kohli, representing the state, conveyed the commitment to a bench of justices Abhay S Oka and AG Masih, stating that an affidavit detailing the timeline would be submitted within two weeks.
“On instructions, senior counsel Nalin Kohli states that the amount of Rs 70 crore will be paid within the next two financial years. Let the state file its affidavit within two weeks,” said the bench.
The next hearing of the case is scheduled for January 24.
The top court was hearing a contempt petition dating back to 2012, which pertains to the non-payment of dues to the workmen working in these tea estates of ATCL.
The decision comes against the backdrop of mounting pressure on the state government to address the plight of workers employed by ATCL, a state-run entity managing 14 tea gardens.
ATCL has been grappling with financial instability for years, with its liabilities ballooning to Rs 650 crore as calculated by a Supreme Court-appointed committee in 2020. This includes Rs 414.73 crore in workers’ dues and Rs 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.
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In February 2023, the Court directed the payment of Rs 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.
