The government has asked the Ruia group-owned Jessop & Co Limited not to sell scrap items and abandoned machines to pay salaries of a section of its staff without getting prior permission from the state government.
In a tripartite meeting held at his Writers Buildings,the labour minister,Purnendu Bose,said,I came to know that Jessop was planning to sell scrap items and abandoned machines to pay salaries. What struck me is that why a company,which registers profits should be allowed to sell scrap items to pay the salaries to its staff? has stated. For record,the company has earned a net profit of Rs 23 crore in the last financial year.
The minister said a team from the directorate of factories and engineers will inspect the factory to examine the scrap items and machines that the company wants to dispose. The government is an important stakeholder. So it can not be kept in the dark about decision to sell scrap items. Every decision has to be taken after informing the government, Bose said.
I have also asked the officials to submit the companys balance sheet. There is a feeling that the company has deliberately inflated the companys balance sheet to stay away from the ambit of BIFR. If the company had really earned such huge amount of profits then why is it resorting to selling its scrap items? Bose asked. The minister has also instructed the officials to submit a revival plan for the company.