Mazagaon Dock Takes Over Scindia Workshop Ltd

Mazagaon Dock Ltd has bought out Scindia Workshop Ltd, 100 per cent subsidiary of the ailing Scindia Steam Ship Navigation Ltd, for Rs 1.10 crore.

A ministry of defense undertaking, Mazagaon Dock has also taken over Scindias land measuring 22,000 square feet.

This should have taken place way back in 1996 when the Scindia Employees Union lost the case in the court. It was delayed due to lack of political initiative, said a senior official at the Scindia Shipping.

The workshop, which was valued at Rs 34.47 crore in 1988 by J B Boda, offshore surveyors and adjusters, is being handed over to Mazagaon dock as per the decision of the Mumbai collector.

 

However, K Venugopal, managing director, Scindia Shipping, said the company had moved the high court to reconsider the amount paid as compensation.

Mazagaon Dock had expressed interest in the land right from 1987, when the government took over Scindia Steam Ship Navigation under the Shipping Development Committee (Abolition) Act 1996. After this, the plant was kept idle and no fresh orders for repair jobs were accepted.

Mazagaon Docks contention was that it could pose a security threat if the workshop land located between two plots owned by them goes to another company.

The Scindia Employees Union had moved the high court in 1990 against the acquisition process initiated by the government.

After the union lost in the high court in 1995, they moved the Supreme Court.

The Supreme Court referred back the matter to the high court directing the lower court to consider the matter. The high court stood by its earlier stand.

Though the union moved the Supreme Court again, they lost the case. After the take over, the workshop closed accepting fresh orders for repair works.

The management introduced the voluntary retirement scheme and within 10 years the number of employees came down to 83 from 700.

The remaining employees have not yet received salary since 1990. According to an union member, the total payment to be made to the employees as per the service conditions amount to Rs 5 crore.

The management is expecting to raise this amount by selling off Scindia Shippings real estate, which comprises Scindia House, Scindia Sadan, Scindia Colony, Laxmi Mahal flat in Mumbai and Panchagni Health Resort at Satara. The Central Board of Direct Taxes is in the process of assessing the net worth of the land. The fate of Scindia Steam Ship is also hanging in balance as no new revival proposal has come up.

The last ship, Jalatapi, was sold in April this year and the liabilities have touched Rs 240.1 crore as on February 4, 1997. As per the present market rates, the real estate of the company is estimated over Rs 334 crore, a official said.