KIRLOSKARS ‘LAND’ IN TROUBLE IN THE SOUTH

Aonce employed over 3,000 workers and earned huge amounts of foreign exchange, eventually scaled down its operations and declared a layoff in 2000.

But when the company went to the now-defunct Bureau of Industrial and Financial Reconstruction (BIFR), the land was sold without informing the workers. The managers, who were living in the staff quarters, were promised that they would not be disrupted and the buildings would be allocated to them. Selling property while the liquidation process is on is not permitted under the Indian property laws.

But once the land was sold, the workers and the managers went to court to seek justice. The workers told the court that there were 198 acres of land, main foundry, and some buildings. The workers were not aware of the cost at which the land was sold by Vikram Kirloskar.

Vikram Kirloskar got the board to appoint his uncle Sham Kirloskar, 70, as the MD of the company in 2000, around the time the crisis was full blown and the liquidation process had started. The government finally appointed a liquidator in January 2004 and Sham Kirloskar was made to answer queries of hundreds of workers, and their families. Now, Sham Kirloskar is saddled with the huge crisis and will have to continue to face the various litigation processes even as cousin Vikram Kirloskar advises—as head of Cii—the government on various policy issues.

Repeated attempts by this reporter to reach both Sham and Vikram Kirloskar through e-mails failed to elicit any response.