Forest department issues show-cause notice to liquidator appointed to settle debts of Hindustan Photo Films factory in Udhagamandalam

Forest Dept. sends show-cause notice to liquidator for auctioning 291 acres of disputed leasehold land of Hindustan Photo Films Mfg. Co. Ltd. Land leased since 1960s, factory closed in 2013. Notice cites TN Forest Act 1882 & Indian Forest Conservation Act 1980. Local conservationists & residents welcome move, as wildlife has re-colonised the area. No further development should be planned.

The State Forest Department has sent a show-cause notice to the liquidator appointed to settle the debts of the Hindustan Photo Films Manufacturing Company Limited, after the assets of the company and the factory were put on the auction block.

The e-auction of the assets, including “disputed leasehold land to an extent of 291 acres” was set for October 12, 2023 by the liquidator, Mahalingam Suresh Kumar.

In a statement, the District Forest Officer (Nilgiris division), said that a total of 291.71 acres of forest land was leased to form the factory and company premises since the 1960s. The factory ceased all operations in 2013 after suffering huge losses. In order to recoup some of the losses suffered by the company, the National Company Law Tribunal, Division Bench 1 in Chennai appointed a liquidator to auction all assets of the company.

However, the then District Collector passed orders cancelling the lease of the 291.71 acres of land leased to the company and asked that it be returned to the Forest Department. As part of the resolution plan to settle the debts accrued by the company, it was decided that the assets of the company in Udhagamandalam and Ambattur would be auctioned. However, there had been no announcement of the plans to sell the land on which the factory stood.

After coming to learn of the plans to auction the land, which technically still belongs to the Forest Department, the District Forest Officer (Nilgiris division), has issued a show-cause notice to the liquidator, informing him that selling the land is in violation of the Tamil Nadu Forest Act of 1882 and the Indian Forest Conservation Act of 1980. He urged the liquidator to immediately withdraw the auction notice.

Local conservationists and residents welcomed the move by the department, stating that the disused factory premises has been taken over by a wide variety of wildlife since its closure. “At least three leopards are said to live in the factory premises, while tigers are also spotted regularly in the area, as well as Sambar deer, gaur and Asiatic wild dogs. The land needs to be returned to the Forest Department and no more development should be planned in the area. As wildlife has re-colonised the area, no other projects should be planned,” said N. Sadiq Ali, founder of the Wildlife and Nature Conservation Trust.