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| Exchange Disseminated Time 12/12/2016 17:08:37 | The Exchange had sought clarification from HMT Ltd with respect to news article appearing in thehindu.com on December 09, 2016 titled "HC stays order on closure of HMT factory"
HMT Ltd replied stating "We would like to inform the Exchange as follows:
HMT Ltd is Government Company under the Ministry of Heavy Industries & Public Enterprises of Govt of India. The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on January 6, 2016 has considered and approved the Closure HMT Watches Limited, HMT Chinar Watches Limited and HMT Bearings Limited the Subsidiaries of the Company and to relieve all the employees of these Companies in terms of approved Roadmap for CPSEs under DHI. DHI vide their letter No. I- 050II/6/2014-PE-X dated January 13, 2016 have requested to take appropriate action and process the closure of the Company by offering attractive VRS package at 2007 notional pay scales with gratuity and leave encashment also at 2007 notional pay scales, in relaxation of DPE guidelines to the employees of HMT Watches Limited,
HMT Chinar Watches Limited and HMT Bearings Limited. As such VRS was introduced in these subsidiary companies and all the employees of HMT Bearings, HMT Chinar Watches Limited along with the employees of HMT WF Bangalore and Tumkur were relieved. All together 894 employees were relieved out of 1040 employees except 146 employees of Ranibagh Unit. The matter with regard to retrenchment of employees was taken up with the Labour Ministry and Order was passed by the Labour Ministry on November 17, 2016.
"With regard to the news "Uttarakhand High Court on Thursday stayed the Central government order to shut down the HMT factory in the Ranibagh area. On November 17, the Labour Ministry ordered the closure of the unit. However, a Single Bench of Justice Rajiv Sharma stayed the order stating that workers should not be punished for the mistake of the company's management. The HMT Kamgaar Sangh had challenged the Centre's order in court. The High Court has given the HMT management and the Labour Ministry Six Weeks" time to file the counter affidavit."
The matter is in immature stage hence we will not be in position to submit any clarification to the Exchange.
We shall keep the Exchange fully informed about the status in the matter as soon as we have the formal communication containing the relevant details of the reported in High Court Order, which we are required to share with the Exchange, as per the Listing requirements." |
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