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Gouri Prasad Goenka promoted Duncans Industries is considering legal action against the Centre’s decision to take control over six tea gardens of the company in North Bengal.
The estates up for take-over through the Tea Board of India include Birpara; Garganda; Lankapara; Tulsipara; Hantapara and Dhumchipara.
“The company being aggrieved by such notification is now in the process of taking legal action,” the Kolkata-based company said in a notification to the bourses.
Duncans it may be mentioned is also a BIFR (Board for Industrial and Financial Reconstruction) company.
In a notification issued last week, the Union Commerce and Industry Ministry had “authorised” the Tea Board of India to initiate steps for taking over management or control of the seven tea estates in accordance with provisions of the Tea Act, 1953.
The commerce and industry ministry’s notification said a report on the status of stressed tea gardens in West Bengal was received from the State government, and that the central government had assessed the situation of the gardens on the basis of reports of the Tea Board, the state government and consultations with the stakeholders in the sector.
According to the notification the tea gardens are being “managed in a manner highly detrimental to the tea industry and to public interest”.
Duncans employs 18,000 people across its 15 gardens in north Bengal. The livelihoods of 50,000 people depend on the gardens.
Shares of the company closed at Rs 16, down by 1.23 per cent at the BSE on Monday.
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