HYDERABAD: The House Committee constituted to probe the sale of Nizam Sugar Factory Limited (NSF) units and properties has recommended appropriate action against officials of the Implementation Secretariat (IS) for irregularities committed in the processing the Delta Paper Mill (DPM) proposal to purchase four units.

The committee headed by J. Ratnakar Rao (Cong), which held several sittings and visited the units in Shakkarnagar (Nizamabad district), Mombojipally (Medak) and Metpally (Karimnagar) on Tuesday met for a crucial meeting in the Assembly. The committee is expected to submit its report to the Speaker soon.

Agreement violated

The erstwhile NSF, which was renamed Nizam Deccan Sugars Limited (NDSL), had 2,242 employees on its rolls at the time of privatisation in 2002. As per the joint venture agreement signed between the Government and the Delta Paper Mill management, 835 employees, including 500 permanent workers, were to be engaged by the new management.

Highly placed sources, however, told The Hindu that only 402 employees were engaged by NDSL, in violation of the agreement. Of them, only 144 were permanent, while the remaining 258 were seasonal workers. A large number of permanent employees were not absorbed and others were forced to opt for voluntary retirement.

The committee found that the NDSL had violated terms of the bid proposal and the agreement and also ignored the order issued by the Public Enterprises Department. It also faulted removal of 111 managers working in the units before privatisation.

Clear bias by IS

The managers were sent out on VRS though some of them were willing to join the NDSL. The IS drew the committee's wrath for accepting the DPM bid, which excluded engaging of the managers. To avoid paying higher salaries, the managers were given VRS.

Due to "wrong" advice given by IS, the Government was forced to pay Rs.12 crores towards VRS benefits to the managers. The committee wanted action initiated against the officials responsible for these alleged irregularities.

Sources said there was no justification in the IS accepting the DPM offer of lower figure of 835 employees. The IS had clearly shown its bias and acted against public interest, the committee observed.

Printer friendly page  
Send this article to Friends by E-Mail