Supreme Court’s Bold Directive: Assam Govt Must Urgently Pay Rs 70 Crore Dues to Tea Workers
The Supreme Court has ordered the Assam government to address the longstanding dues of workers at Assam Tea Corporation Ltd. (ATCL), mandating the disbursement of Rs 70 crore in two payments of Rs 35 crore each. This directive comes after a protracted wait as the state government took time to agree on a payment plan. A bench of Justices Abhay S. Oka and Ujjal Bhuyan approved the government’s proposal to make these payments and specified deadlines: the first installment by June 30, and the second by June 30, 2026.
The court emphasized that once the funds are deposited, they should be allocated on a ‘pro-rata’ basis. Furthermore, it will decide on the state’s further liabilities after the full Rs 70 crore is deposited. Previously, in December, the state government sought time to file an affidavit for the staggered payment plan, highlighting its lack of resources to inject more funds into the loss-making ATCL, which manages 14 tea estates.
The ATCL’s dire financial situation prompted discussions about selling its tea gardens to settle employee dues, which, as calculated by a court-appointed committee in 2020, amount to approximately Rs 414.73 crore plus Rs 230 crore for provident funds. The state’s efforts to financially rescue the corporation had previously failed, leading to a decision against further investments.
This ruling responds to a contempt plea concerning unpaid worker dues, originating from an International Union of Food and Agriculture Workers petition in 2006. The Supreme Court had initially ordered the payment of dues in 2010, but compliance issues led to the 2012 contempt filing. In February 2023, the court commanded the payment of around Rs 650 crore for 28,556 workers across Assam’s 25 tea gardens, including ATCL’s 15 estates. This account includes both public and private sectors, emphasizing the sector’s financial struggles.
Original Source: https://www.indiatodayne.in/assam/story/pay-rs-70-crore-dues-to-tea-corporation-workers-sc-tells-assam-govt-1160237-2025-01-25?utm_source=rssfeed
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Publish Date: 2025-01-25 08:49:00
