BENGALURU: IN a major judgement that could help the state government make use of land worth crores of rupees belonging to its public enterprise for infrastructure projects, the High Court on Thursday recalled its order directing winding up of the New Government Electrical Factory Ltd (NGEF).
Justice Vineet Kothari passed the order to that effect after hearing the application filed by the state government. The government can now revive just the management of the company to use 119 acres of NGEF’s land for public utility and not for a factory.
The High Court had passed an order winding up NGEF on August 3, 2004. The state government, which has 90 per cent shares in NGEF, approached the High Court in 2015 for revival of the firm. In its application, the government gave an undertaking that the land to the extent of 119 acres will be used for infrastructure projects.
According to the petition, the government repaid around `80 crore to NGEF’s secured creditors. Presently, NGEF has no dues to be paid to secured or unsecured creditors.
In the judgement, Justice Kothari pointed out the court wass conscious of the fact that the company’s land could be encroached and hence it did not see any hurdle in reviving the company.
Former workmen can approach management
The court made it clear that former NGEF workers can approach the new management, to be constituted by the government, with grievances, if any. The state government has given its consent this, the order said.
Meanwhile, the court also asked the official liquidator to handover the records of NGEF as soon as the board of directors is appointed.
Some former employees, who have taken VRS, have objected to NGEF’s revival, saying that they should have been given better VRS package.
SIT gets notice on mining case
The High Court on Thursday issued notice to the Special Investigation Team probing an illegal mining case in response to an anticipatory bail petition filed by senior IAS officer Mahendra Jain, who is presently serving as Additional Chief Secretary, Urban Development Department. Earlier the Lokayukta Special Court rejected his bail plea. The SIT is probing Jain’s role in the loss caused to the the state’s exchequer by allegedly showing undue favour to private persons when he was MD of Mysore Minerals Ltd (MML).