ABSTRACT

INDUSTRIES - Tamil Nadu Steels Ltd., Arakkonam - Recovery of House Building Advance (HBA) from the employees by adjusting the Fixed Deposits with Tamil Nadu Transport Development Finance Corporation Limited(TDFC) - Discharging the fixed deposits of the individuals whose principal and interest is less than the fixed deposits amount and to refund the surplus amount to them - Orders - Issued.

INDUSTRIES (MIF 2) DEPT.

G.O.(3D) No. 72
Dated:13.7.2004

Read:

1. G.O.Ms.No.222, Industries (MIA 1) Dept., dated 16.6.98

2. G.O.Ms.No.432, Industries (MIA 1) Dept., dated 23.7.98

3. From the IC&DIC Lr.Rc.No.37555/ADA3/2003, dated 29.10.2003

4. From the Deposit Manager, Tamil Nadu Transport Development Finance Corporation Ltd., Lr.No.006737/TDFC/2004, dated 10.6.2004.

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ORDER:

In the G.O. first read above, Government have issued orders among other, closing down the operations of Tamil Nadu Steels Ltd. In the G.O. second read above Government have issued orders that an appropriate amount from the Voluntary Retirement Scheme (VRS) benefit of the employees of Tamil Nadu Steels Ltd. whose House Building Advance (HBA) is outstanding should be deposited with Tamil Nadu Transport Development Finance Corporation Limited(TDFC). The deposited amount would remain with TDFC till the outstanding HBA amount of the employee under VRS is recovered. After the principal amount was fully recovered, interest recovery would be done and after fully discharging the HBA dues (Principal + interest), TDFC would refund the deposit amount to the concerned employee on instructions from Government.

2. In the letter third read above, the IC&DIC has stated that the interest received on fixed deposits of the employees of Tamil Nadu Steels Ltd. is being adjusted against the respective outstanding of HBA and interest and in cases, where the principal and interest are fully recovered, the surplus interest receipts and the discharged Fixed Deposits are returned to the employees. Presently, 104 HBA accounts and corresponding fixed deposits are being maintained by the IC & DIC out of which 30 deposits are sufficient to cover the amounts due from the respective employees. Some of these employees have represented that the value of their Fixed Deposits is more than the outstanding loan with interest and hence they have requested that the excess amount available in their fixed deposits may be refunded to them after adjusting the outstanding principal and interest. The IC&DIC has also contacted the Joint Managing Director, TDFC and ascertained that TDFC will be in a position to issue two cheques one towards the HBA and interest payable to Government and other to the individual (being the excess amount over and above the amount due to HBA + interest). In the above circumstances, the IC & DIC has requested the Government to examine this and permit him to discharge the fixed deposits of the individuals whose outstanding principal and interest is less than the fixed deposit amount and to refund the surplus amount to them.

3. In the letter fourth read above, the TDFC has also agreed to as a special case to issue 2 cheques (one in the name of the Department i.e. the primary depositor and the other in the name of individual) provided the FDRs are surrendered to TDFC duly discharged, all at a time (i.e. one time settlement)

4. The Government, after careful examination, accept the proposal of IC&DIC. Accordingly, the Government permit the IC&DIC to discharge the fixed deposits of the employees of Tamil Nadu Steels Ltd. whose outstanding principal and interest is less than the fixed deposit amount and to refund the surplus amount to them subject to the following:-

"that the TDFC would as a special case, issue 2 cheques (one in the name of the Department i.e. the primary depositor and the other in the name of individual) provided the FDRs are surrendered to TDFC duly discharged, all at a time (i.e. one time settlement)"

5. This order issues with the concurrence of the Finance Department vide its U.O.No.40365/BPE/04, dated 24.6.2004

(By order of the Governor)

RAMESHRAM MISHRA
SECRETARY TO GOVERNMENT.

To

The Industries Commissioner & Director of Industries and Commerce, Chepauk, Chennai 5.

The MD, TDFC Ltd.,Tamilnadu Tourism Complex (4th Floor), No.2, Wallajah Road, Chennai 2.

The AG, Chennai 18.The AG, Chennai 18 (By name)

The PAO (E), Chennai 5.

Copy to

The Finance (BPE) Dept.,Chennai 9.

The Industries (IT) Dept., Chennai 9.

The Industries (OP II) Dept.,Chennai 9.

Sf/Sc

/Forwarded by order/

Section Officer.