Mahesh Sharma (42) had worked for Moser Baer India for 17 years and drew a monthly salary of around `27,000 when the company was dragged into insolvency proceedings in November 2017. Even before that, all was not hunky-dory as the management declared a lockout at the Greater Noida plant. The workers opposed it vehemently and got the lockout revoked, hoping that operations would start soon. Sharma, who was the President of Moser Baer Karamchari Union, says that workers were ready to give up a part of their salaries for a few months to help revive the company. Of course, people were not working during the insolvency resolution period, but they were hoping that a buyer would ultimately turn up and get the business going. But operations never started, and on September 20, 2018, the company was liquidated under the Insolvency and Bankruptcy Code (IBC), 2016, leaving 2,500 employees jobless (they were finally paid full compensation after moving the Supreme Court). As part of the liquidation process, the factory land, one of the major assets, has been acquired by True Value Nirman, an Ahmedabad-based real estate company.
Sharma now runs a small electrical appliance shop in a dusty bylane of Dadri. He had tried to secure another job and was about to be hired by a firm on a monthly salary of ̀ 34,000. However, he failed to clear the HR round due to his trade union activities in Moser Baer. He says he will never get another position in Noida or nearby areas because of his past affiliation to labour unions.
This is not a unique incident. The same story is being played out at many levels, in different parts of the country, as creditors push debt-ridden companies to the National Company Law Tribunal (NCLT) and resolutions are sought under the IBC. Some businesses managed to find new promoters and they continue to operate, but others failed and were liquidated.
This story is from the December 15, 2019 edition of Business Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 15, 2019 edition of Business Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Picking Up The Paytm Pieces
Paytm Founder Vijay Shekhar Sharma Is Back In The Trenches After Rbi's Recent Action Left Him Without A Banking Platform. There Are Still Some Opportunities, But He Will Have To Move Swiftly To Grab Them
PMS Vs MF The Big Fight
How do mutual funds and portfolio management services match up? Know the score on structure, rules, entry fees, charges, and tax perks to pick the right path for your financial journey
Four Levers Of Enterprise AI Strategy
Wide-scale private sector AI deployment and new AI-based business opportunities and ecosystems can truly supercharge the Indian economy
"Don't let a unique chance slip by"
JEFF MAGGIONCALDA | CHIEF EXECUTIVE OFFICER | COURSERA
THE INCOMING DISRUPTION
The disruption in the industrial sector is still unknown, but inevitable. Companies need to wake up
THE WHEEL WHISPERER
For Manan Shah, Managing Director of MICL Group, luxury cars are not about showcasing one's wealth or status. It is about personal well-being
TRIPPING WITH TECH
A road trip is an adventure like no other. While you take in the experience, get some peace of mind with these nifty gadgets
Transforming Spaces
WHETHER YOU WANT TO REDECORATE YOUR BEDROOM OR HALLWAY, A GORGEOUS WALLPAPER ADDS FLAIR TO YOUR HOME AND ALLOWS YOU TO STAMP YOUR STYLE IN YOUR NEW ABODE
ALPHATALE
MONEY MANAGERS TO THE AFFLUENT DELIVERED ROBUST RETURNS TO INVESTORS IN THE PAST YEAR, THANKS TO THE BUOYANCY IN THE MARKETS. BUSINESS TODAY DECODES THEIR STRATEGY
"THE ALTERNATIVES SPACE CAN GROW 3X IN FIVE YEARS"
Vikaas M. Sachdeva, MD of Sundaram Alternates, talks about where India's alternative investment industry is headed