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Orissa HC Sets Date For Govt To Deposit Rs 115 Cr For Take-Over Of OTM

By
OB Bureau

Cuttack: The Orissa High Court on Thursday directed the state government to deposit Rs 115 crore with the official liquidator by October 15 to take over the defunct Odisha Textile Mills (OTM) at Choudwar in Cuttack district.

The high court issued the order after the official liquidator, appointed for the State-owned OTM, submitted that the claims and receipts involving the company amounted to Rs 115 crore. It includes salary due to the employees and other payments.

Last month, the state’s Advocate General Ashok Parija had informed the Orissa High Court that the Odisha government will take over the OTM. The government has already deposited Rs 35 crore with the liquidator and is ready to deposit the rest Rs 115 crore to take over the OTM, the AG had informed the High Court. Hearing the reply of the AG, Justice Arindam Sinha had asked the liquidator to appoint an accountant general.

Justice Sinha had directed the accountant general to estimate the pending dues of the employees and companies from the OTM in the six weeks and submit the detailed list before the court in next hearing on September 13. Hearing the petition on Tuesday, the High Court directed the official liquidator to submit an additional affidavit to take over the defunct OTM.

Bhubaneswar Medicine Bank Society has proposed to buy the defunct textile mill at Rs 200 crore. After it filed an intervening petition, the court scheduled its hearing in this regard on September 15.

Hearing the petition, the court today directed the government to deposit Rs 115 crore with the liquidator by October 15 and scheduled the next hearing for October 18.

It may be noted that the OTM was shut down due to high financial losses on July 31, 2001.

OB Bureau

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