Phagwara MLA raises JCT former staff concerns in Assembly

In a significant development, Phagwara MLA Balwinder Singh Dhaliwal raised concerns in the Vidhan Sabha regarding the plight of nearly 5,000 former employees of JCT Ltd, who have been struggling for their dues following the closure of the textile mill two years ago.

Speaking in the Assembly, Dhaliwal alleged that JCT management was involved in financial misconduct amounting to over Rs 100 crore. He claimed that despite multiple FIRs registered against JCT directors Samir Thapar and Mukulika Sinha for various alleged offences, law enforcement agencies have failed to take any concrete action against them.

The MLA further stated that the mill’s closure was illegal and the assets were allegedly sold without obtaining the mandatory No-Objection Certificates (NOCs) from the state government or the Centre. Additionally, he pointed to serious irregularities in Provident Fund (PF) withdrawals and non-compliance with Employees' State Insurance (ESI) regulations.

Following the Assembly session, former employees of JCT Ltd. expressed gratitude to Dhaliwal for bringing their grievances to the legislative forum. Many ex-workers, including Ashwini Thapar, accused company officials of unlawfully withdrawing PF contributions without the employees’ consent, leaving thousands of families in financial distress.

Thapar alleged that JCT Ltd had failed to adhere to the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, despite managing its own PF trust. He criticised the Employees' Provident Fund Organisation (EPFO) for its inaction on the matter.

During a meeting on February 14, 2025, the Labour Department, under the supervision of the Chief Secretary, reportedly directed the authorities to initiate legal action against the trustees of the JCT PF Trust. However, no steps have been taken for prolonging the employees' struggle for justice.

The ex-workers further claimed that repeated requests for the disclosure of paid and unpaid PF amounts as well as Voluntary Provident Fund (VPF) contributions have been ignored. The absence of transparency, they argue, continues to hinder rightful recoveries for the affected employees.

A particularly distressing revelation made by Dhaliwal in the Assembly was that eight former employees allegedly lost their lives due to the company's failure to comply with ESI regulations. The lack of proper medical aid under the ESI is believed to have directly contributed to these deaths, exacerbating the suffering of the victims’ families.

Despite Chief Minister Bhagwant Mann’s awareness of the issue, there has been little progress in ensuring justice for workers. The ex-employees’ union remains hopeful that the state government, now officially alerted through the Assembly, will prioritise their concerns and take decisive action.

The affected workers are demanding swift police intervention, including arrests in connection with the FIRs filed against JCT Ltd. officials. As thousands of families await justice, their calls for accountability and financial restitution grow louder, urging the state authorities to act without further delay.