Ex-JCT officers move HC over fund misuse by directors

Two former officers of JCT Mills, Phagwara, have approached the Punjab and Haryana High Court, seeking intervention against the alleged financial misconduct by the company’s management.

The petition, filed against the State of Punjab, the DGP, the SSP, Kapurthala, the District Magistrate, Kapurthala, and JCT directors, urges the court to constitute a committee under a retired judicial officer to conduct a compliance audit of JCT Mills and ensure the recovery and disbursement of pending employee funds.

The petitioners, Ashwani Thapar and Vaneet Sahni, representing the JCT Ex-Employees Union, have also sought strict action under Section 129 of the BNS against JCT directors for alleged financial fraud, misappropriation of employee funds and evasion of statutory dues.

In their petition, Thapar and Sahni express disappointment over the lack of action by the authorities despite multiple complaints. They allege that JCT Mills’ units in Chohal and Phagwara were closed illegally without due process. Despite complaints filed with the police regarding these closures, no action has been taken.

The petitioners claim that JCT Limited has defaulted on provident fund (PF) contributions since December 2022. However, key officials allegedly withdrew their PF shares despite the account being non-operational. No action has been initiated against the officials or PF trustees responsible for these irregularities.

According to the complaint, the Employees’ Provident Fund (EPF) department was aware of the default but permitted online transactions for two months, during which misappropriation of funds reportedly occurred. The financial records for 2022-23 indicate a discrepancy of approximately ₹26 crore in the PF accounts, with a reported balance of ₹128 crore, while only ₹102 crore is accounted for.

Thapar and Sahni further allege that JCT Director Mukulika Sinha was briefly detained during a recent meeting but was later released, despite multiple pending cases against her, including non-bailable offences. They have demanded transparency regarding the circumstances of her release and the status of legal proceedings against her.

Additionally, the petitioners accused JCT of unlawfully withholding employees’ dues, including PF, ESI, TDS, superannuation and bonuses. They claim that due to ESI-related issues, seven employees lost their lives — five in Chohal and two in Phagwara.

The union has written to the Chief Minister and other authorities, urging immediate intervention to ensure justice for affected workers. The petitioners emphasised that unless swift action is taken, thousands of employees may never receive their rightful dues.