‘Inefficiency’ could cost Duncan six tea gardens

The GP Goenka-headed Duncan Industries, which is set to lose management control of six tea gardens in West Bengal on grounds of “inefficiency”, may additionally lose ownership of the gardens if the State government so decides after the tenure of management control by a new entity is over.

“The management control of the six ailing tea gardens identified by the Centre will soon be handed over to a new entity for a maximum period of 11 years. After that, the State government, together with the Tea Board, will take a fresh call on whether Duncan has the competence to run the gardens or if the ownership should be passed on to the new entity,” a government official told BusinessLine.

On March 22, the Tea Board invited Expressions of Interest (EoI) from tea companies, firms and co-operative societies, for taking over management control of Duncan’s tea gardens in Birpara, Gardanga, Lankapara, Tulsipara, Huntapara and Dumchi, all located in West Bengal.

The Commerce Ministry cited Duncan’s failure to comply with the requirements of timely payment of workers’ dues, provident fund, gratuity, ration and other fringe benefits while announcing the takeover of the gardens through the Tea Board in January this year.

“The Tea Board will evaluate the competence of the new agencies to manage the tea gardens and then make its choice and hand over management control for five years, extendable by another six. Ownership of the six gardens during the period will stay with Duncan,” the official said.

During this period, the State government has the authority to cancel the lease of the tea garden land, which is currently with Duncan, and hand it over to the new entity, if it wants, the official added.

The entity that gets management control of the tea gardens will have to pay all the dues to workers and the current management. All current profits will also be theirs.

Duncan will not get anything for the period that the tea gardens are managed by the new entity. Based on how Duncan performs in the next five to 11 years, the State government will decide whether the company gets to keep the gardens or if it should be passed on to new owners, the official added.

Duncan Industries has 14 tea gardens in West Bengal with estimated dues of around ₹70 crore.

There were a number of deaths reported in some of the tea gardens owned by the company last year, but no direct links were established with non-payment of dues.

Duncan Industries had challenged the Centre’s takeover move in the Calcutta High Court, but the court ratified the Commerce Ministry’s action.

Chief Minister Mamata Banerjee said the takeover was good if the gardens started functioning properly and the Centre ensured that all the workers were given the benefits they are entitled to.

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