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Take possession of defunct textile mill by Dec 5: Orissa HC

PTI
Updated: December 3rd, 2022, 15:57 IST
in Metro, Top Stories
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Cuttack: The Orissa High Court has asked the state government to take possession of the property of a defunct textile mill at Choudwar by Monday as it has already made full and final payment for taking over the facility.

Justice Biswanath Rath directed the state government to take possession of the Odisha Textiles Mill (OTM) property on ‘as is where basis’ by 4 pm Monday after the official liquidator expressed an apprehension Friday that the state government appeared to be reluctant to take immediate possession of the facility.

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The OTM property at Choudwar in Cuttack district is about 50 km from state capital Bhubaneswar.

The court said if there was “further game playing’ by the state authorities and the handing over and taking over possession of the property was not completed by December 5, the state would be charged with a monthly expenditure required for the time being and Rs six lakh would have to be deposited in the High Court December 6.

For the OTM properties, which include 522 acres of land,  the state government has already deposited Rs 150 crore in two phases with the official liquidator.

In his report to the High Court, the official liquidator alleged that on some plea or other, the state representatives were not taking over the possession of the property.

Instead, the state was insisting on to take possession only after an inventory was made, but there was no scope to make the inventory in “as is where is basis of sale”, the report said.

In the event the property was not being handed over to the buyer in due time, the financial burden on the official liquidator will increase.

“The state representative and the official liquidator are directed to remain present in discharge of handing over and taking over possession of the property December 5. “Both are further directed to file their respective compliance report before this Court December 6 when this matter will be listed”, the High Court said.

Tags: Defunct textile millorissa HC
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