Orissa HC Orders State Govt To Deposit Rs 115 Cr By Oct 15 To Take Over OTM

Cuttack: The Orissa High Court on Thursday directed the state government to deposit Rs 115 crore with the official liquidator of the State-owned Orissa Textile Mills (OTM) by October 15.

The HC further clarified that to take over the defunct Odisha Textile Mills (OTM), the first textile mill of Odisha at Choudwar in Cuttack district, the government has to pay the amount.

Earlier, the court had given six weeks’ time to the official liquidator appointed for OTM to come up with a clear picture of the claims and receipts involving the company by engaging a chartered accountant.

Notably, the OTM was shut down on July 31, 2001 due to extreme financial losses.

After winding up OTM, the state government had filed a petition for liquidation of the company in the High Court. The court had subsequently appointed an official liquidator for the purpose.