State deposits Rs. 30 crores with court's liquidator

CUTTACK: The government on Wednesday deposited an amount of Rs. 30 crores with the official liquidator of the High Court in compliance to the court order passed earlier this month.

The court had asked the State Government to deposit the amount by February 28 in responses to the latter's bid to revive the closed Orissa Textiles Mill (OTM) at Choudwar.

With this, the uncertainty over the government's earnestness in reviving the OTM was cleared. It is also hoped that the textiles mill, which was closed in 2003 after it was declared sick, would start working soon, much to the delight of over 5,000 families who depended on this industrial unit.

The mill was sold to a Gujarat-based company in November 2005 by the official liquidator appointed by the court. M/s I.B. Enterprises, in whose favour the sale of mill premises along with land and machinery was confirmed, deposited the entire bid amount of Rs. 23 crores with the liquidator. But before the mill was handed over to the purchaser, the government submitted an application to the court in October 2006 under the Companies Act to recall the sale order of the liquidator. The government told the court that it was planning to revive the unit through a proposed integrated textile park (ITP). The court, after considering the application, asked the government to deposit a sum of Rs. 30 crores before the liquidator and submit a detailed proposal of revival. Though the government submitted the blueprint of the revival plan, it failed on different occasions to deposit the amount. The court then gave a last chance to the government asking it to deposit the amount by February 28 and posted case to March 9.