Sun Apr 13 05:44:07 UTC 2025: ## Assam Workers’ Unions Demand Probe into Corrupt Liquidation of Paper Mills
**Guwahati, Assam, April 13, 2025** – An umbrella organization representing workers’ unions in Assam has demanded a thorough investigation into the allegedly corrupt liquidation of two paper mills, paving the way for a major semiconductor plant. The Joint Action Committee of Recognized Unions (JACRU) is calling for an independent, judicially monitored probe into the sale of the Nagaon and Cachar Paper Mills, formerly owned by Hindustan Paper Corporation Limited (HPCL).
The mills were acquired by the Assam government in 2022 for ₹375 crore. Subsequently, over 550 acres of the Nagaon Paper Mill land were sold to a Tata Electronics subsidiary for a mere ₹1 per bigha (0.62 acre) to build a semiconductor plant. This transaction follows the suspension of Kuldeep Verma, an insolvency professional, by the Insolvency and Bankruptcy Board of India (IBBI) for serious misconduct during the liquidation process. Verma’s violations included asset mismanagement, fund diversion, and improper claim adjudication across multiple cases.
JACRU alleges that Verma disregarded court orders to maintain HPCL as a going concern, resulting in the sale of ₹5,000 crore worth of assets at drastically undervalued prices. The union further claims the liquidation left unresolved liabilities of only ₹98 lakh while rendering thousands jobless and impacting over 2 lakh families.
Assam Chief Minister Himanta Biswa Sarma, however, hailed the semiconductor plant as a “game-changer,” projecting it to generate 30,000 jobs and contribute significantly to India’s semiconductor industry. The ₹27,000 crore project is one of two such units being developed by Tata Electronics, with the other located in Gujarat. The JACRU’s demands include seizing all assets related to the case and holding those involved accountable for the alleged corruption.
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