A Mumbai-based finance company, declared ‘dormant’ and ‘vanishing’ by the office of the Registrar of Companies and the Reserve Bank of India, has interestingly been given tender by the Bihar Government to revive the sick Ashok Paper Mills worth crores of rupees in Darbhanga district of Bihar. The company had even taken loan of `28 crore from banks for the revival plan.
Following a Supreme Court order dated January 5, 1997 for the revival of the Ashok Paper Mills, a draft scheme was prepared by the Department of Industrial Policy Ad Promotion, Government of India and the representatives of the Government of Bihar, IDBI, Mumbai-based finance company Nouveau Capital and Finance ltd (NCFl) and Shri Umadhar Prasad Singh, President of the Ashok Paper Kamgar Union. The Supreme Court had made the direction on a writ petition (no. 174/1991) filed by the Ashok Paper Mills Kamgar Union.
As per directive of the apex court ad instructions communicated in compliance thereon by the Department of Industry, Government of Bihar (vide letter 193/IDC, dated 14.8.1997), the commercial manager of the Ashok Paper Mills ltd handed over the charge of the factory with its physical assets to Dharam Godha of Nouveau Capital and Finance ltd. The inventory of physical assets was verified and signed by the commercial manager works manager in charge and Shri RM Kothari of NCFl on August 17, 1997.
The court agreement said that the company NCFl had to invest `504 crore for the revival of the Ashok Paper Mills within a period of 36 months, otherwise the agreement would be declared invalid.
The Mumbai-based finance company NCFl even took loan of `19 crore from IDBI and `9 crore from the United Bank of India for revival of the plant but the company became traceless from November 11, 2003 after locking the gate of the Mill.
“Interestingly, after a gap of eight years, the NCFl company re-appeared in 2011 and producing a fake pledge paper to the Government of India and the Bihar Government took over the properties of the Ashok Paper Mills,” charged the president of the Ashok Paper Mills workers’ Union, Umadhar Prasad Singh.
Meanwhile in an RTI response, the Ministry of Corporate Affairs, Office of the Registrar of Companies (dated June 28, 2013) has informed Umadhar Prasad Singh that Nouveau Capital and Finance limited (CIN-U67120MH1991PlCO63696) company’s status is “dormant”. The company has also not filed any balance sheet or annual return for the last three financial years ending 2012.
Further to an another RTI reply (dated August 22, 2013), the Reserve Bank of India has declared the NCFl as a “vanishing” company and has also informed that the company currently is not registered with the Reserve Bank as a Non-Banking Finance Company (NBFC).
“Despite all, the NCFl has been given permission on false and fake pledges to loot the assets of Ashok Paper Mills in the name of its revival,” alleged Umadhar Prasad Singh, who is also a former MlA.
Singh has all along been fighting for the revival and welfare of altogether 471 workers of the Ashok Paper Mills spread in about 400 acres of the land in Rameshwar Nagar of Darbhanga district.
“Only the land of the Mill costs over `200 crore and machines, building and plant cost another `200 crore. It’s a loot of over `400 crore going on by a dormant and defunct company,” he alleged further.
“I demand for a CBI inquiry into all this loot going on with the active collusion of the Bihar Government,” charged the leader.
When The Pioneer contacted the Bihar Industry Department officials for their reaction over the NCFl and its role in Ashok Paper Mills revival plan and its credentials they chose to ignore the issue in the name of “we’ll look into it” excuse.
“The company has been given tender as per the apex court directive…and, that’s all I know about it…but let me look into it what you say,” said an official requesting not to be quoted.
It may be mentioned that it was the same NCFl company which had hogged the headlines in November, 2012 when a guard of the company had fired upon Mill workers killing one Sushil Shah and injuring two Dukhi Yadav and Jai Kumar Yadav.
The Mill employees were protesting the iron and scrap-loaded trucks coming out from inside the Mill premises on the night of November 10, 2012.The owner of the NCFl company, Dharam Godha, was named as prime accused in the case and on August 3, 2013, the local court even had rejected his anticipatory bail in the case.
“He was not arrested in the case and is still an absconder. Yet he has been given permission to take over the Mills and loot it properties worth crores,” alleged Umadhar Prasad Singh.
“Its a question of life and death of 471 workers and employees of the Mill…the sooner the Government will look into it ordering a CBI inquiry the better it will be,” he said, “Otherwise, who will put faith in such Governments allowing loot in the name of revival of the sick unitIJ”