In an impassioned plea for justice, a coalition of workers’ unions has demanded accountability for the corrupt liquidation of two paper mills in Assam. This scandal has significant implications for the establishment of one of India’s key indigenous semiconductor plants, making it a matter of national interest.
The umbrella organization called for a thorough and independent investigation, overseen by the judiciary, to root out all instances of corruption related to the liquidation process. They also urged authorities to seize all assets, both movable and immovable, connected to the case to ensure those responsible are held to account.
The controversy stems from the Insolvency and Bankruptcy Board of India’s decision to suspend the registration of Kuldeep Verma due to serious misconduct during the liquidation of eight companies, including the Nagaon and Cachar Paper Mills of the Hindustan Paper Corporation Limited (HPCL). These mills were acquired by the Assam government for ₹375 crore, with a portion of the land allocated for the establishment of a semiconductor plant by Tata Electronics.
IBBI’s Disciplinary Action
On April 7, the IBBI’s Disciplinary Committee suspended Kuldeep Verma’s registration for two years after finding him in violation of the Insolvency and Bankruptcy Code and associated regulations. The suspension, set to take effect 30 days from the order, highlighted several breaches, including failure to safeguard the assets of the corporate debtors, improper adjudication of claims, and overcharging of fees.
As a professional member of the Indian Institute of Insolvency Professionals, Verma was entrusted with handling the liquidation process of the HPCL and other corporate debtors. However, his actions, as noted by the IBBI, have raised serious concerns about the integrity and transparency of the process.
Workers’ Union Outrage
The Joint Action Committee of Recognized Unions (JACRU) representing the Nagaon and Cachar Paper Mills welcomed the IBBI’s decision as a step toward justice. They lambasted Verma for disregarding directives to maintain the HPC as a going concern, resulting in a “cheap sell-off” of assets worth ₹5,000 crore. This, they argued, has had a devastating impact on the industrial landscape of Assam and left thousands of workers unemployed.
JACRU’s leadership emphasized that the liquidation process, which concluded with unresolved liabilities of a mere ₹98 lakh, has had far-reaching repercussions for the families and youth of Assam. They decried the loss of livelihoods and opportunities that the closure of the paper mills has brought about, painting a grim picture of the aftermath of the scandal.
Amidst the turmoil, Assam Chief Minister Himanta Biswa Sarma expressed optimism about the future, touting the upcoming semiconductor plant at Jagiroad as a potential game-changer for the state and the nation. With an estimated value of ₹27,000 crore and a projected job creation of 30,000, the plant represents a significant investment in Assam’s industrial future.
As the semiconductor plant takes shape on the grounds once occupied by the Nagaon Paper Mill, the promise of a burgeoning industry and economic revitalization looms large on the horizon. The unfolding saga of corruption and redemption in Assam’s industrial landscape serves as a stark reminder of the delicate balance between progress and accountability in the pursuit of economic development.
