Centre takes over 7 Duncan gardens

Sambit Saha, Radhika Ramaseshan and Avijit Sinha, TT, Calcutta, Jan. 29: The Centre has authorised the Tea Board to take over the management control of seven gardens of the G.P. Goenka-headed Duncan Industries in north Bengal, stepping onto a populist but tricky terrain left open by Mamata Banerjee ahead of the Assembly elections.

The Union ministry of commerce and industry invoked a rarely used section of the Tea Act of 1953 to take control of the gardens in the Dooars, saying they "are being managed in a manner highly detrimental to the tea industry and to public interest".

The gardens, which are officially open but are ailing, can potentially generate 10 million kg of tea and employ 17,555 workers. Chaired by Gouri Prasad Goenka, Duncan, which has 14 gardens in Bengal, has run up mounting dues on salary and statutory benefits.

After taking over the seven gardens, the Centre appeared keen to send a message that it had acted while the state government dithered.

Only the Centre can invoke the takeover law but the Mamata government, which owns the land leased to the gardens, had been unable to bring about dramatic change on the ground in spite of holding talks with Goenka. Although police had wanted to question Goenka on alleged dues to a worker, signs of a rapprochement had emanated after Goenka met Mamata in Nabanna.

Nirmala Sitharaman, Union commerce minister of state with independent charge, told The Telegraph: "The chief minister wrote to the Prime Minister and put the entire onus on the Centre. But the Centre took the onus and we are moving forward."

Chief minister Mamata Banerjee welcomed the takeover but with a rider. "It is good if the gardens function. What we want the Centre to ensure is that all benefits the workers are entitled to should be given to them. That is of utmost importance."

Sitharaman suggested that wages would be paid but not the dues. "We will ensure the workers start getting their wages right away.... The new management will not have to bear the burden of the old liabilities left by the previous company. Neither will the Centre shoulder the liabilities. However, we will address each and every concern of the workers."

The dues in all the 14 Duncan gardens are said to be around Rs 70 crore. Several deaths have also been reported in some gardens although the suspected cause - malnutrition - has not been conclusively established.

Bengal government sources said the Tea Board was a promotional body with neither experience nor resources to run gardens. A better alternative would have been to ask a public sector unit with experience in tea to manage the gardens, they added.

But Sitharaman said: "We had originally intended to work in tandem with the state government and look for new buyers. But that did not get anywhere. Our first objective is to open the gardens we have taken over, we will call whoever wishes to run these on a management contract, our only condition being the person or group should know how to run them."

In the past, the Tea Board has been asked to take over the management as a temporary measure before a new player is found.

Sitharaman explained the timing of the takeover. The window between January and March is crucial for tea plantation. "That's the time the soil is cleared, the weeds are plucked so that the ground is clean and clear for the next yields. If we do not open the gardens for operation, the total production loss will be considerable," the Union minister said.

The state government sources did not rule out the possibility of a legal challenge by any of the stakeholders.

Duncan officials expressed surprise at the move. "We had a meeting with the workers a few days ago. It is strange that the Centre chose to intervene in the matter when things are on the mend," said a senior official of Duncan.

The notification issued by the commerce ministry cited various representations on "the deteriorating condition of the tea gardens" and an inspection report.

The notification said the ministry also received a report from the Mamata government. "...the situation of the said tea gardens has been assessed by the central government on the basis of the report of the Tea Board and the state government of West Bengal and consultations with the stakeholders of tea sector," it added.

According to the provisions of the Tea Act, the gardens may remain under the new management up to 12 years unless the Centre is convinced that it was no longer necessary and they can be handed back to Duncan.

The Centre can invoke the takeover clause if a tea unit made losses in three out of five immediate preceding years or habitually made defaults on the dues of workers and employees or its production yield was lower than the district average by 25 per cent or more. Industry sources said the seven gardens would qualify on all these counts.

If the workers start getting wages, the Mamata government is certain to claim credit. If anything goes wrong, the Centre will be blamed. The Saradha scandal offers an insight: as soon as the Supreme Court handed the case to the CBI, Trinamul said that repaying the dues to the depositors was the responsibility of the Centre.

The BJP-led government at the Centre is also expected to capitalise on its decision to wade into the troubled gardens while the rest of the Opposition in the state is likely to charge Trinamul with leaving the workers to fend for themselves. Several BJP leaders and ministers, including Sitharaman, had visited the tea gardens and accused the Trinamul government of inaction.

Additional reporting by Abhranila Das