Bihar told to pay state salaries

By Jyotsna Singh
BBC correspondent in Delhi

The Indian Supreme Court has told the government in the northern state of Bihar to provide funds of nearly $11m to pay the salaries of employees of companies affiliated to the state government.

Nineteen such companies which were losing money have closed down in recent years. Some workers had not been paid for nearly 10 years.

Many have committed suicide as a result of their financial problems.

Now the Supreme court asked the Bihar government to deposit nearly 500 million rupees ($10.6m) over the next two months with Bihar's high court to make sure the salaries are paid.

The court also set up a three-member committee comprising retired judges of Bihar's High Court to carry out an assessment of the assets of loss making companies that have either been closed down or are on the verge of closure.

No medical treatment

The verdict came in response to a public interest petition filed by a Bihar lawyer, Kapila Hingorani.

Ms Hingorani said in her petition to the court that nearly 1,500 workers employed in these companies had died as a result of their deep financial troubles.

She said some committed suicide while others could not pay for vital medical treatment.

The Bihar government had argued that it was only partially responsible for the supervision of the companies, saying they were managed by autonomous corporations.

Therefore, it said the issue of salaries was a matter for the managing corporations, not the state government.

Friday's verdict has given a ray of hope to thousands of families struggling for survival in Bihar.

Nearly 80,000 people work in 49 state-run corporations that have been declared loss-making by the government for years.

Bihar is one of India's poorest states and has also acquired the reputation of being the most lawless area of the country.