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The Supreme Court on Friday directed the Assam government to pay Rs 70 crore in two equal instalments to the financially troubled Assam Tea Corporation Ltd (ATCL) to settle the long-overdue dues of its workers. The bench, comprising Justices Abhay S Oka and Ujjal Bhuyan, approved the state government's proposal to disburse the payment in two instalments of Rs 35 crore each. The first instalment is due by June 30, while the second must be deposited by June 30, 2026. The court clarified that once the funds are deposited with ATCL, the amount should be distributed on a pro-rata basis.
The court also stated that it would only determine if the state government should be absolved of further liabilities after the complete payment of the Rs 70 crore. The Assam government had previously proposed this arrangement in December 2023, requesting four weeks to file an affidavit. ATCL's chairman was asked to submit details of its movable and immovable properties, as the state government claimed it was unable to provide additional funding for the loss-making corporation, which manages 14 tea estates.
The Supreme Court had previously dealt with the issue in a contempt petition filed in 2012, following non-compliance with a 2010 order directing the payment of worker dues. A 2020 committee found the workers' dues amounted to Rs 414.73 crore, with an additional Rs 230 crore owed towards provident funds. In a February 2023 order, the court directed the payment of approximately Rs 650 crore to 28,556 workers across 25 tea gardens, including 15 owned by ATCL.
The bench suggested that the sale of the 14 tea estates might be considered to settle the workers' dues, which include pensionary benefits and provident fund contributions.
Also Read: SC Directs Assam Tea Corporation Chairman To List Properties Owned