Contrary to its earlier stand Dunlop India Limited has suspended the operations
of its Chennai plant. According to the suspension notice all employees including
the security staff have been exempted from work and will not be paid till the
factory resumes operations.
the reason for suspending operations, Dunlop India states that the workers let
the company down by joining hands with VGN Enterprises a Chennai-based private
real estate developer to trespass and encroach sizeable unmeasured land. The company
had earlier announced resumption of production sometime this month.
VGN Enteprises has made an offer to Dunlop India to swap the eight acres with
the company for equal sized plot within the same premises.
may be recalled VGN Enterprises bought 60.86 acres auctioned off by Dunlop India
under the Board of Industrial and Financial Reconstruction (BIFR) rehabilitation
scheme way back in 2004. The price paid was Rs24.34 crore. (See: Dunlop
India disputes its land sale)
about the swap offer D Pratish, director, VGN Enterprises, says that his company
is not backtracking as the title deeds are clearly in the name of VGN Enterprises''
managing director V N Devadoss. "We have made the offer in the overall interests
of the Dunlop workers as the company strongly feels that production could resume
only if it is in the possession of the same eight-acre land in question."
Dunlop Factory Employees Union has written to BIFR urging it not to permit
the company from selling any of its non-core assets without settling their dues.
According to the union, the company owns around 58.52 acres in Chennai apart from
the 30-acre factory land.