The retired employees of public sector trading body State Trading Corporation, who were stripped of the medical scheme providing life-time cover last year, have represented to the Commerce Ministry that the company should be asked to resume its contractual medical scheme without illegally diluting it now that it has collected large sums as dues from one of its clients.

“Even though the retired employees medical scheme is not subject to STC’s financial condition, under directions from Supreme Court, STC has received drafts of ₹800 crore in November 2018 and another ₹600 crore in February 2019 . Therefore, the alleged financial crunch being faced by STC as stated in the affidavit filed before Delhi High Court in the case of ex-employees is now over,” according to a statement by Ashok Lal, Secretary, STC Ex-employees Welfare Association.

The retired employees have now sent fresh representations to STC, the Commerce Ministry and Commerce Minister seeking resumption of the contractual 1981 medical scheme without illegally diluting it to the detriment of the retired employees, Lal said. While STC has discontinued the medical scheme for its vulnerable ex-employees, it has continued the scheme for its current employees in sheer violation of constitutional provisions, the statement pointed out.

Last April, the STC Ex-employees Welfare Association had approached the Delhi High Court asking it to direct STC to withdraw its recent order “illegally’’ suspending the medical scheme for its retired employees. In response, the trading company had filed an affidavit before the Delhi High Court and highlighted the financial crunch the company was facing. STC, which was engaged in a legal battle with NRI businessman Pramod Mittal for non-payment of dues, following directions of the Supreme Court, has now received its dues from Mittal.

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