Rs 28 cr CP Fund amount of JK Cements’ employees not deposited in account

Retirees go high & dry; 550 employees without salary for 9 months
Gopal Sharma
JAMMU, Sept 23: In a shocking and rare development of its kind, the State Government’s Corporation – JK Cements, has not deposited an amount of nearly Rs 28 crores in the CP Fund account of its employees since 2015 while many of its retirees are going high and dry to their homes after rendering over 35-40 years of service whereas, over 550 employees of the Corporation are without salary for the last nine months.
One may be surprised to know about yet another unethical practice prevailing in the JK Cements that its Managing Director, I H Drabu is drawing his own salary every month while his staff, considered to be the members of ‘JK Cements family’, is without salary for the last nine months.
“Principal Secretary, Industries and Commerce and Managing Director of Corporation before whom several employees pleaded several times for the release of their wages and arrears, including CP Fund, Gratuity, COLA and Pay Commissioner arrears, surprisingly remained unconcerned about plight of a workforce of over 550, which is regularly performing its duty but in return, paid nothing at the end of the month for feeding self and their children. This is perhaps the classical example of extreme exploitation and human rights violation of working class, for whom, the agencies like ‘J&K Labour Commission’ and Human Rights bodies have shut their eyes,” said some JK Cements employees on the condition of anonymity.
Making another startling revelation they disclosed that ‘some senior officers’ at the helm of affairs have not deposited an amount with the ESI worth Rs 1.5 crore. This has resulted in the denial of free treatment to the workers of JK Cements in the ESI run hospitals in the State. They further said that Company’s this account has been freezed after detecting this grave irregularity, which amounts to a ‘criminal act’ on the part of officers responsible for it.
They further told the ‘Excelsior’ that they are without salary for the last about nine months. The matter was taken up with the senior officers including Managing Director and the Principal Secretary Industries but any positive outcome is yet awaited. They alleged that many working employees and even the retirees applied for the release of their CP Fund and other dues but they were denied the same.
When they contacted the Fund office, they came to know that since June 2015, the JK Cements authorities have not deposited the CP Fund in the dedicated Account despite the fact that it was being deducted from their salary every month for the last many years. Even the Corporation was not depositing its own 50 percent share in the CP Fund account for the last several years due to financial crisis. They said all of them were shocked to know about the matter but the top officers have maintained criminal silence over it.
They said as per rough estimate an amount to the tune of Rs 28-30 crore of employees’ Provident Fund has not been deposited in the Account since June 2015. They are not aware about the fate of this money. They said some employees of the Corporation from Kashmir have moved to the court. The Court and the Labour Commission have served notices to the officers concerned. The summons were also issued to them from the CP Fund office as well, they added.
They further said that most of the Managing Directors being appointed in JK Cements for the last one decade are coming from SICOP. Earlier, before 2010, technical officers of the rank of Chief Engineers were heading this Company. The JK Cements was earlier doing good and earning profit but since 2010, a spree of ‘loot and plunder’ besides back door appointments started.
A few former Industry Ministers and MDs during past 10 years caused much damage to this Corporation which once used to give dividend to the State Government. They said there were Rs 80 crore fixed deposits with the JK Cements during 2008-09. During the period of SS Slathia as Industries Minister, the company got an over draft of Rs 130 crores from JK Bank. But after that till date, its health condition went on deteriorating. Now, the company is not able to pay even retirees dues and wages of the employees but MD is drawing his own salary every month. They demanded inquiry into the sad state of affairs in the JK Cements and also look into the role of few former Ministers and Managing Directors.
Parshotam Singh, who rendered 39 years of service in the JK Cements and retired as Assistant Manager in July 2018, has been denied his CP Fund and other benefits by the Company. Singh said that his dues worth over Rs 36 lakhs are pending. He retired without any single penny paid by his Company. He said there is no pension in Corporation and for the last 14 months he is moving from pillar to post but his hard earned money is being denied.
Chand Ji Bhat, who retired as Foreman in June 2017, after rendering 36 years of his precious life in the company, is also moving from pillar to post. Bhat said he had applied for the release of his dues as the marriage of his daughter is scheduled to be held in November 2019. Some amount of his CP Fund was released after repeated requests but still his dues worth over Rs 20 lakhs were pending. Bhat said he suffered serious paralytic attack and had to under go treatment outside the State. He spent huge money on medicines and treatment, but there is no support from Company, Bhat added.
K K Kachroo, another retiree from JK Cements who is diabetic and heart patient, rendered 40 years of unblemished service in the JK Cements has to recover his dues worth over Rs 40 lakhs from the Company. Kachroo said he is spending huge money per month on his medicines but there was no support from the JK Cements. “ Even my wife is suffering from cancer and undergoing treatment outside the State but unfortunately there is no support from my department. I have borrowed huge money from my relatives. The Government is pressing me to commit suicide, I have no other option,” he maintained.
Kuldip Ambardar, RK Matoo and few others had also almost similar views. They said some portion of the CP Fund amount was paid after pressure from employees but most of the dues are still unpaid. They said the Governor and Chief Secretary must take cognizance of the matter and order a high level inquiry. They said even the matter was brought to the noticed of Advisor KK Sharma and Principal Secretary Industries, Navin Choudhary but they only gave assurances.
Managing Director of JK Cements, I H Drabu when contacted said that matter with regard to pending salary and other dues has been taken up with the Principal Secretary Industries, the Chief Secretary and even the Advisor. When asked about non-deposting of CP Fund amount in the account of the employees, Drabu said, it is an old issue. He was not responsible for it. The system has been derailed in the Corporation since long. He has joined hardly eight months ago. The CP Fund and other liabilities have piled up and turned huge.
“There is nothing in my hand. The Government has offered to provide Rs 10 crore assistance for revival for the Corporation and not for paying salaries. But it is just peanut amount. For bringing JK Cement s on the rails, an assistance of at least Rs 50 crore is required. Regarding pending dues, some employees have gone to the court and the out come is yet awaited,” he added.
Drabu expressed his inability to pay the CP Fund and other dues of the workers and said that after his coming to JK Cements, he has generated Rs 30 crore revenue. Samba unit was functioning but Khrew unit is presently closed. For that some working capital is required. It will also be made functional soon. Drabu said surplus staff and back door appointments have ruined the company. Now, surplus staff is being deputed to other departments. About 200 employees have been sent so far and the process is going on, Drabu added.

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