The auction of Hukumchand Mill has suffered a setback as no bidders came for its online auction scheduled for Friday. The date of online auction of the Hukumchand Mill land measuring 42.49 acres had been fixed on June 28, 2013. However, surprisingly due to controversies surrounding the mill, not a single proposal came in from any bidding for this land.
The Debt Recovery Tribunal (DRT) has set reserve price of `400 crores for the auction. Even as the set reserve price of the land is far lower than its current market value, there were no takers for this land.
As per the rule any individual/institution had to deposit 10 per cent of reserve price (`400 cr) to take part in the auction process.
Controversy had surrounded auction of Hukumchand Mills land, more so after the state government’s claim that the land of Hukumchand Mills cannot be auctioned as it belonged to the industry department.
Employee union of Hukumchand Mill had also challenged the auction in High Court on the ground that DRT has set lower reserve of the land for auction.
Few days back HC had given consent for auction of mill land. Court had also assured that employees will get their dues.
Now the auction of land has suffered a setback, employees will have to wait still further to get their dues, said Narendra Shrivans, President of Hukumchand Mill Employee Union adding that even the employees union was not against the auction; they only want their pending dues. Court had assured them money earn from auction will be distributed among all including employees. As of now around 6000 employees has pending dues of `229 crore.