Aryoday mill land sold, workers set to receive ₹82 crores
Updated: Oct 25th, 2024
A deal was struck for Aryoday Spinning & Weaving Mills Co’s land for ₹82 crores, which raises hopes for its workers to finally receive their long-overdue compensations, including provident fund contributions.
In 1989, the Aryoday Spinning and Weaving Mill in Ahmedabad was closed down, leaving 3,288 workers without their dues.
Since the mill’s closure, workers have received only about ₹1.45 crores—less than 5% of the total owed to them, which is around ₹26.95 crores.
Notably, 60% of these workers have died over the years without getting any compensation. The legal hurdles have delayed payments, and although the land was offered for sale five times since 1989, it wasn’t until 2016 that the Supreme Court allowed the sale of leasehold land, opening the door for this recent transaction.
In June 2024, a bidding process was initiated, where a company named Arham Developers placed the highest bid initially. However, another company, Devbhoomi Agrifresh, later expressed interest to buy the land for ₹75 crores and eventually secured the land for ₹82 crores in a renewed bid.
The court has accepted this bid, paving the way for the long-overdue payments to the former workers.
With ₹15 crores already deposited as earnest money by Devbhoomi Agrifresh, the deal is likely to be sealed, raising possibilities for compensation for the workers.
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