Bifr To Decide On Sale Of Jessop & Co Headquarters

The plan to sell off the building was on the agenda since a very long time. This view had been unanimously decided by all the major officers and workers trade unions.

This decision comes in the wake of tight financial liquidity crunch, which the company is facing. Currently only the commercial, purchase, financial and personal departments are located in the building.

The engineering division was shifted out of this building eight years back. The company had not rented out any portion of the building for reasons of its own. Sources said that a decision is awaited up to the hearing and a early disposal would have taken place in the event of falling prices of land.

 

However, there may be a proposition to continue with a small corporate office of the directors in the building. But nothing on this issue has been decided as yet.

Thereafter the sale of the building will take place through the process of an open tender placed by State Bank of India, their operating agency.

Jessop was referred to the BIFR in March 1995. The management and employees organisation had already agreed in principle that the office premises be sold. The proceeds from the sale would be used towards payment of gratuity and provident fund dues, estimates of which are believed to be over Rs 25 crore.

Earlier such a proposition was decided by the joint action committee, comprising of the Citu, Intuc and the National Confederation of Officers Associations.