West Bengal government files FIR against Pawan Ruia after Jessop fire

Govt passed a bill to take over closed factories of Jessop, Dunlop in West Bengal which was then under Ruia Group

Shortly after ordering a CID probe into the incident of fire which gutted the Jessop & Co factory at Dum Dum in Kolkata, the state government and the fire department have filed non-bailable FIRs against its promoter Pawan Ruia, opening up a debate about the ownership of the company.

While the state government moved ahead to issue FIRs against industrialist Pawan Ruia terming him to be in-charge of Jessop, the Ruia Group bounced back stating that Pawan Ruia is no longer associated with the company.

Back in April this year, the state government passed a Bill in the legislative assembly to take over the closed factories of Jessop and Dunlop in West Bengal which were then under the managerial control of the Ruia Group.

With the state government and the fire department charging sections 435 (mischief by fire or explosive substance with intent to cause damage), 436 (mischief by fire or explosive substance with intent to destroy house) and 120B (criminal conspiracy) against the industrialist who had planned to revive the Jessop and Dunlop factories in the state, the Ruia Group has questioned the legality of the charges against Pawan Ruia.

"The state Assembly has passed the Bill to takeover Dunlop and Jessop and is now paying the wages of the workers in Jessop. Pawan Ruia (chairman of Ruia Group) doesn't hold any position in this company or have shares in Jessop. Thus how can there be an FIR against him", a Jessop spokesperson said adding that the Group isn't responsible for what happens in the factory as the takeover Bill has been passed.

Crucially, while the Dunlop India Limited (Acquisition and Transfer of Undertaking) Bill, 2016, and Jessop and Company Limited (Acquisition and Transfer of Undertaking) Bill 2016 is yet to obtain the necessary signature from the Governor to become an Act, which transfers the promoters' shares to the state government, the government began to pay wages to a section of the workers in the Jessop factory.

"There is a scheme under which the state government can pay wages to the workers of closed factories but that doesn't imply that the state government has taken over Jessop", Ramen Pandey, president of the West Bengal unit of INTUC, said.

Moreover, the Jessop and Company Limited (Acquisition and Transfer of Undertaking) Bill 2016 will need consent of the Indian president as the central government owns four per cent of the company.

A cabinet ranking minister in the state government, in knowledge of the Jessop takeover said that the Cabinet decision had been taken for the takeover but was unaware if it has become an Act.

The Ministry of Corporate Affairs shows Soumitra Ghose, Satyadeo Mishra and Baisali Ghoshal as the directors of the company in question which has a paid-up capital of 61.51 crore.

The Jessop factory suffered three cases of fire in a week's span which led to West Bengal's fire minister, Sovan Chatterjee to suspect foul play into the incidents.

Shortly after the FIRs were lodged, Ruia visited Chatterjee.

"The matter is under investigation now and the truth will come out soon", Chatterjee, who is also the mayor of the Kolkata metropolis, said.

The state government has accused Jessop for flouting the 2013 High Court Order which instructed Jessop to repair the walls, clear bushes and tighten security at the factory. While the management sought help to set up police camps, the other two orders were not followed.

From October 10-18, three cases of fire were reported at Jessop. While the first two were not reported, the last fire drew in the state government's suspicion about foul play going on inside the factory.