Mini Ratna WAPCOS a ‘sinking ship’, counsel tells Delhi High Court
Counsel for WAPCOS Limited, a state-owned engineering consultancy, described the company as a 'sinking ship' during a Delhi High Court hearing regarding employee regularization. The court has ordered the production of audited balance sheets to verify the company's claims of financial instability.
Why it matters
The case highlights potential financial mismanagement in public sector undertakings and the legal challenges surrounding employee job security.
WAPCOS Limited, a ‘Mini Ratna-I’ public sector undertaking under the Union Jal Shakti Ministry, is reportedly a “sinking ship” that lacks the financial capacity to retain its existing employees and has, on occasion, had to borrow money to comply with court orders.
This was the position advanced by counsel representing WAPCOS during proceedings before the Delhi High Court on July 6, according to an order by Justice Sanjeev Narula. The assertions were not themselves made as an affidavit filed by WAPCOS but were recorded by the judge in his order.
“During the course of his submissions, Mr. Sharma laid considerable emphasis on the financial position of WAPCOS, contending that the company is, in effect, ‘a sinking ship’ and lacks the financial capacity even to sustain the existing employment of the Petitioners,” the order said.
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