Supreme Court directs govt to pay Rs 70 crore pending dues to tea garden workers

Guwahati, Jan 25: The Supreme Court has directed the Assam government to pay ₹70 crore in outstanding dues to workers of the Assam Tea Corporation Limited (ATCL) over the next two financial years.

This decision comes after the state assured the court of its commitment to settle the long-pending dues.

The directive was issued during a hearing on a contempt petition concerning non-payment of dues to ATCL workers, on Friday.

ATCL, a state-owned enterprise managing 14 tea gardens, has faced financial difficulties for years, with liabilities amounting to ₹650 crore, including ₹414.73 crore in workers' dues and ₹230 crore in unpaid provident funds.

Despite a 2010 Supreme Court order directing payment, compliance has been lacking, leading to the filing of a contempt petition in 2012.

In previous hearings, the apex court expressed dissatisfaction with the state's inability to clear the dues and considered ordering the sale of ATCL's assets to generate funds for the workers.

The court emphasised the state's responsibility as a welfare entity to ensure the well-being of its citizens.

The Assam government has now committed to disbursing the ₹70 crore over the next two financial years, aiming to resolve the long-standing issue and provide relief to the affected tea garden workers.

Earlier in October 2024, the Supreme Court had summoned Assam's Chief Secretary and issued a notice to the Union Ministry of Commerce and Industry over delays in disbursing dues to tea garden workers.

Criticising the lack of genuine efforts by the Assam government, the bench, led by Justice Abhay S. Oka, emphasised the urgency of resolving the matter, noting the plight of 28,556 workers across 25 tea estates.

The issue, dating back to 2006, involves ₹645 crore in unpaid statutory dues and provident fund contributions, with ₹414.73 crore still pending.