This story is from April 24, 2020

Wardha co booked for not paying salaries during lockdown

Wardha co booked for not paying salaries during lockdown
Wardha: Mohata Industries Ltd, one of the biggest textile units of the district, was booked by the police on Thursday for not paying salaries of employees and labourers during the lockdown. The offences were filed after the district administration filed a complaint over violation of government’s Covid-19 and lockdown norms.
Labour unions had complained to district administration that from the day lockdown was imposed the company had not paid its 607 employees and labourers.
Rashtriya Mill Mazdoor Sangh (RMMS) too had requested the company to pay wages.
Meanwhile, the RMMS wrote letters to district labour officer and administration. Despite several requests by the administration, the company seemed reluctant to pay the wages. Sub-divisional officer Chandrabhan Khandait said the company had promised it would pay wages before April 6. But every time it delayed the payment citing several reasons.
Khandait said district collector Vivek Bhimanwar ordered him on Wednesday to take action against the company management as they are violating government orders. Further, he said, district guardian minister Sunil Kedar also asked the collector to take action.
The company has been booked under sections 188 and 269 of IPC, section 51(B) and 58 of Disaster Management Act 2005, the Epidemic Diseases Act 1897, and Maharashtra Covid-19 Regulations 2020.
Police have filed offences against Mohata industries Ltd director Vinod Kumar Mohata, interim resolution professional Prashant Jain, and seven others.
Jain, appointed as part of proceedings involving the company before the National Company Law Tribunal (NCLT), said the company was already in problems. “We had written several times to the district administration and informed them about the situation. Company has to pay all dues but it is not in a position to pay now. We are aware about the situation due to Covid-19, and all businesses are suffering. We will pay all dues after the markets reopen,” he said.
A reliable source in the company said on condition of anonymity that the company had already been facing a slowdown since few months. “We could only pay 50% salaries of February. Only our spinning department was functioning. We were expecting payment for a consignment, but the stock could not be shipped before lockdown came into force and is now stuck,” he said.
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