Taking a pro-active administrative step in favour of about 5 thousand workers of Hukumchand Mill, Indore, the Chief Minister Dr. Mohan Yadav, within 15 days of assuming the office has resolved a long-standing issue.
The importance of this initiative of Chief Minister Dr. Mohan Yadav can be understood from 15 points related to the Hukumchand Mill dispute, how this matter pending for more than 30 years was resolved benefitting about 5 thousand workers.
1. Hukumchand was given 17.52 hectares by the then government in 1923 for setting up a textile mill. Land was allotted on lease, on which Hukumchand Mill was established.
2. High quality cotton fabric was produced in Hukumchand Mill, which was also exported to foreign countries. About 7000 laborers and staff officers were employed in this mill.
3. The operation of the mill continued till 1991. After 1992, the mill management had to close the mill due to various reasons.
4. Due to non-repayment of the loan taken by the mill management for setting up and running the mill and non-payment of salaries and other liabilities to the workers, many court cases were filed by financial institutions and workers against the mill management. The government was also made a party.
5.The High Court appointed the official liquidator in the year 2001 and the Debt Recovery Authority (DRT) was ordered to auction and was instructed to settle the liabilities.
Several attempts were made to auction the loan by the Debt Recovery Authority (DRT), but without success.
6. Regarding ownership of land, dispute between Government and Municipal Corporation, Indore reached the Supreme Court. After sometime, an application was given by the Municipal Corporation, Indore to withdraw its claim. No decision was given by the Supreme Court. In the year 2017, the case was again sent to the High Court, Indore by the Supreme Court for a hearing and decision.
By order dated 22.05.2018 by the High Court, Indore, the land ownership was declared for Municipal Corporation, Indore.
7. This application was filed by the government before the Supreme Court and the High Court in 2016 that if the project is allowed on the land, then all liabilities will be settled by the government.
As no concrete proposal was given, no decision was given by the court on this application of the government.
8. In compliance with the orders of High Court, Indore dated 28.03.2017 and Supreme Court dated 20.04.2017, Industries Department, Govt. MP made a payment of Rs 50.00 crore to the official liquidator on the condition that this amount would be reimbursed to the government at the time of disposal of the property.
9. M.P. Govt. according to the order of the High Court, Indore, in 2019, the land use of the mill was determined by the government as commercial (60 percent) and residential (40 percent). Even after land-use modification, efforts were made for auction by the official liquidator, but without success.
M.P. MPIDC by the MP Government in July 2022, in order to ensure proper utilization of the mill land in the interest of the city, instructions were given to settle the liabilities through a project on the mill land.
10. M.P. Govt. in April 2023 asked MPHIDB to negotiate and obtain consent from the debtors of the mill so that the valuable land of the government can be freed and can be used by the city.
11. On the basis of the liabilities finalized by the Official Liquidator for 2001, proposals were given by the Board to all the concerned parties for consent. Several meetings were held by the Board with all the parties and the consent received was sent to the government for approval.
