HC bar on okay for Raymond realty development

Textile major Raymond would have to wait further to pursue its intention of realty development on 126 acres of land in adjoining Thane. The high court here, in an interim order, has directed the Thane municipal corporation not to grant any approvals to the company for re-development of the land, which currently houses a textile unit.

The company has stopped all production and is engaged in a dispute with employee unions, representing 1,885 employees, over the severance package. The HC gave its order on a petition filed by Shiv Sena legislator Pratap Sarnaik, who had argued the company should not be granted any permission for realty development till it pays an adequate compensation package to the employees.”

The HC has asked the company to respond. The Raymond spokesperson was not available for a comment.

Workers are adamant on a compensation package cumulating to Rs 350 crore, while the management wishes to pay Rs 150 crore. The management has offered to revise the package if the state government lifts reservations on the land and makes available extra floor space index (FSI) for development. State labour minister Hasan Mushrif, who has held two meetings with Raymond chairman Gautam Singhania on the issue, has reiterated that the government would not compromise on the employees’ interests.