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Home / Knowledge / News / Textiles / Textile workers heave sigh of relief on hearing court order

Textile workers heave sigh of relief on hearing court order

05
Nov '08

Over 15,000 textile workers must be heaving a sigh of relief on hearing news of a court judgment permitting sale of land assets of as many as seven closed textile mills in and around Ahmedabad, situated in the province of Gujarat in India. These are Aryodaya Spinning Mills, Omex Investors, Amruta Mills, Ahmedabad Jubilee Mills, Prasad Mills and another mill from a town near Ahmedabad.

These mills had closed down over a decade ago and workers were waiting to be paid their terminal benefits to be realized from the sale of land of the now defunct textile mills. The apex court in Gujarat had passed an order for closure of nearly twenty textile mills in Ahmedabad a few years ago.

The land was to be sold off and proceeds to be distributed to workers who were given the first rights to any amount accrued from sale of the land with lenders like Banks and financial institutions holding the second rights.

But the original land owners opposed the move and contended that since the court had ordered closure of the mills, the land should be returned to them as they were the original owners for which they filed a petition in the court in 1999.

But the apex court turned down their petition and ruled in favour of the existing mill owners. The total area of the land under contention is 445,490 square metres.

Fibre2fashion News Desk - India

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