Mafatlal Mills asked to submit proposal on Mazgaon spinning unit

The mill has been allowed to dispose of its land at Parel as its Mazgaon unit comes under reservation of the Development Plan, Deshmukh said. He admitted the mill had liability of Rs 617 crore as the management had borrowed loans from ICICI and other financial institutes. “Since the mill’s case is pending with the Board of Industrial and Financial Reconstruction (BIFR), we have suggested that the revival proposal should be submitted jointly by the mill, the ICICI, representatives of workers and the government,” Deshmukh said.

Diwakar Raote (Sena) alleged that the mill-owner wanted to pump in the money received from the sale of the Parel unit into his mills in Gujarat. “The question of running its Mazgaon unit does not arise as the 99-year lease agreement of the land held by it has already expired. The mill-owners will surrender the land at Mazgaon and evade responsibility,” Raote said.