Cuttack, Jan. 9: The state government, in an affidavit submitted in the high court, has said that employees of the state-run public sector undertakings, who had availed voluntary retirement scheme (VRS) and voluntary separation scheme (VSS), are not entitled to arrear dues or statutory dues as they are not state government employees.

The affidavit was filed in response to a notice issued by the high court seeking clarification on the alleged harassment of about 35,000 employees of different corporations who had opted for the VRS and VSS under compulsory closure scheme (CCS).

A PIL had alleged that families of these 35,000 employees were “suffering from mental tension and psychological trauma” due to non-payment of arrear dues. Keonjhar Navanirman Parisad secretary Dillip Kumar Mohapatra and a former employee of the Orissa State Road Transport Corporation, who had taken untimely retirement under VRS, Rama Chandra Sahoo, had filed the PIL.

“As a matter of policy, the government has never committed to pay arrear dues of the employees as they are not state government employees. So the alleged harassment of the PSUs employees is not based on fact,” Madhusudan Mishra, deputy secretary in the department of public enterprises, said in the counter affidavit. The PIL had contended that thousands of employees of different corporations had taken VRS and VSS after the state government had assured payment of arrear dues within two months of their voluntary retirement. They were also assured that they would be trained within two months for their rehabilitation under Social Safety Net Programme.

“But eight years later, the employees who had taken voluntary retirement, are running from pillar to post for getting their dues and other benefits,” the petitioners had alleged. The state government, on the other hand, claimed: “Effective steps including payment of VRS/VSS dues to 35,495 employees/workers have been taken up.” However, the affidavit admitted that only 9,811 of them had been imparted training under the Social Safety Net Programme for taking up alternative livelihood but no financial assistance had been provided for setting up business or self employment.

The affidavit said that DFID grant of Rs 301.40 crore had been utilised by the state government for “consultancy support” to department of enterprises and PSUs for purpose of VRS/ VSS to the employees and training to them.

The PIL had sought implementation of a white paper published by the state government in 2002 in letter and spirit. But the state government said: “The white paper is a policy document indicating the path forward, but is not mandatory in nature.”

“The government has been in the process of finalisation of a panel of independent directors for the PSUs. The applications for empanelment of independent directors have been invited and shortlisting is in the process,” the affidavit said.