The management of the beleaguered Dunlop India Ltd has closed down its registered office at Mirza Ghalib Street in Kolkata. A notice lies hung on the door asking some odd 100 employees to report at another office at A J Bose Road and some 20 others at an office in Kings Court.
The management argues that the move is in line with the BIFR order and its decision, where it can mortgage the property to mop up resources so that it can make payments to its employees and debtors.
Initially the company had decided to shift its head office to the factory at Shahgunj. The management has in fact also made arrangements to that order. But because the factory was closed down, the decision to shift the registered office has been to the factory was later changed.
"The new location is not large enough to house 100 employees," argues the union. The new office was originally a warehouse that was latter changed to a sales office, they claim.
Meanwhile a meeting has been scheduled in November 22, where the management will meet the unions along with government officials to workout a solution on the fate of the company, as well as the fate of the employees.
"The factory was closed down, the registered office has been shifted, the management seems to be all set to close down the company," claims members of the unions.
The registered office at Mirza Ghalib Street, in the heart of the city will fetch a lumpsum amount if leased out. The four storied building has at least a few thousand square feet of space on all its floors, says sources.
Meanwhile, the Board for Industrial Finance and Reconstruction (BIFR) has rejected the revival package submitted by Dunlop. The company along with its operating agency, IDBI, was directed to submit another revised package in the next three month. The unions along with the bankers objected to the revival package submitted to the board by the company management.
