SC clears decks for revival of Super Bazar
The Supreme Court cleared the decks for the chain’s revival by quashing the co-operative society’s liquidation order and directing the Dainik Bhaskar group to take over its, reports Bhadra Sinha.delhi Updated: Feb 27, 2009 00:45 IST
Delhi’s first chain of retail stores, Super Bazar, which introduced the concept of shopping under one roof at affordable prices will come alive once again.
The Supreme Court on Thursday cleared the decks for the chain’s revival by quashing the co-operative society’s liquidation order and directing the Dainik Bhaskar group to take over its management.
A bench headed by Justice S.H. Kapadia declared Writers and Publishers Ltd as the successful bidder after the group agreed to pay Rs 504 crore to bail out the ailing cooperative Super Bazar that ran the retail stores on no profit-no loss.
The Writers and Publishers Ltd were given preference over the National Cooperative Consumer Federation of India along with Pantaloon Retail who was judged as the second highest bidder, offering Rs 369 crore to revive Super Bazar.
The group was also the first choice of Super Bazar Karamchari Dalit Sangh that had moved the Supreme Court in 2003 requesting for the chain’s revival. Jagdish Chaudhary who filed the petition on behalf of the union said: “The group had offered to run the chain under the existing Multi-State Cooperative Society Act and promised not to retrench any employee of the Society. Also, it promised continuous service to the employees.”
The amount of Rs 504 crore would be used to clear all the outstanding dues of the society. While Rs 35 crore has to be paid to DDA, MCD, CPWD, Directorate of Estates and suppliers, Rs 54.31 crore would be disbursed to the society’s employees. Government’s share capital of Rs 1.16 crore would also be cleared with the amount.
Even as the Dainik Bhaskar group takes over Super Bazar’s control, the chain would function under the Multi-State Cooperative Society Act and its employees would be governed under the Super Bazar Service and Conduct Rules.
With SC giving green signal to the private group, Dainik Bhaskar would now have the liberty to start the operation at the 90 existing properties of Super Bazar. At present these shops are locked. Also, the group would have the freedom to start the store anywhere in the country.