The District Forest Officer (Nilgiris Division) has issued another notice to the liquidator of the Hindustan Photo Films (HPF) Manufacturing Company Limited, to cancel the planned auction of 291 acres of land on which the factory stands.
According to Forest Department officials, the liquidator, appointed to recoup some of the losses accrued by the company, had already issued a similar notice on October 12. Opposing the move, the District Forest Officer had issued a show-cause notice asking how the land, which was leased from the Forest Department when the factory was set up, could be auctioned. Though an e-auction was held, no bids were made for the purchase of the land.
The HPF factory was set up in the 1960s. At its peak, it employed around 6,000 workers. However, the company witnessed a dip in its fortunes in the 1990s, and was eventually declared bankrupt in 1996. The factory ceased all operations in 2013.
District Forest Officer S. Gowtham said the lease to the land was cancelled by the Collector in 2020, and an order was issued to return it to the Forest Department.
The issue is being taken up by the National Company Law Tribunal and the Madras High Court.
“Meanwhile, to our shock and dismay, a sale notice has been issued again for the sale of leasehold rights of Hindustan Photo Films Manufacturing Co. Ltd,” the DFO said in his notice to the liquidator.
He added that the sale notification was issued in violation of the Tamil Nadu Forest Act, 1882, and the Forest Conservation Act, 1980. He also called upon the liquidator to withdraw the e-auction notice published on November 28.
The auction has been scheduled for December 28. The DFO has urged that the 291 acres of land be removed from the liquidation process.