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12 cases filed against PAL-Peugot unit

BS Regional Bureau in Mumbai | July 16, 2003 09:39 IST

The Maharashtra labour minister, Satish Chaturvedi, on Monday said that 12 cases have been filed against the management of the now defunct PAL-Peugot's unit in Dombivli.

The cases are in order to recover the wage arrears due to nearly 2,000 workers.

Chaturvedi, in a written reply submitted to the state legislature, said that the 2,000 workers have not been paid their salaries for the last five years.

He added that the production of the 118 NE brand of cars as well as spare parts at the Dombivli factory has been discontinued from July 5, 1999.

Citing the reasons for the shutting down of production at the factory, Chaturvedi said: "Market competition, the sudden and one-sided termination of the joint venture by the firm's collaborators, outstanding liabilities, pending legal cases against the company, truncated power supply among other things led to the production being completely stopped since 1999."

He said that 12 cases were filed before various legal bodies against the promoters of the Dombivli factory after repeated efforts to restart the factory and clear payment arrears failed.

"The company also failed to pay the workers their outstanding dues within a time frame set up by the government which resulted in the legal action being initiated by the state," he said.


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