Phagwara, Aug 10: — Residents of JCT Phagwara Colony are enduring a sixth consecutive day without electricity and running water due to a lingering payment dispute between the management of a local JCT Mill and the Electricity Department with hundreds of families struggling to cope with the ongoing hardships. a consequence of the ongoing insolvency of the once-thriving Jagatjit Cotton & Textile Mills (JCT). The mill, which employed over 10,000 workers, has been embroiled in financial turmoil, culminating in its declaration of insolvency by the National Company Law Tribunal (NCLT) in June 2025.
The mill reportedly owes the electricity board around Rs 6 crore in unpaid dues, leading to repeated disconnections. A similar blackout had lasted 22 days earlier this year before power was restored. On Monday, supply was again suspended.
Locals including Brij Kishore, Deepak Kumar, and Anmol expressed frustration over the situation. “We are forced to spend nights without light in this extreme heat,” one resident said, adding that this year’s Raksha Bandhan festival would pass without electricity.
The power outage has severely impacted water supply, forcing residents to fetch water from neighboring areas. While the Municipal Corporation is providing water tankers to alleviate immediate needs, residents called these “temporary measures” and demanded a swift resolution.
Executive Engineer Hardeep Singh confirmed the supply cutoff, stating, “The electricity bill has not been cleared, which is why the supply was cut. I will provide more details in the morning.”
On Thursday, a delegation of residents met Sub-Divisional Magistrate (SDM) Jashanjeet Singh seeking urgent intervention. The SDM said the administration was arranging water but noted that restoring electricity depended on the firm managing the mill’s affairs.
The mill’s case is currently under the National Company Law Tribunal (NCLT), with an Insolvency Resolution Professional (IRP) appointed to oversee operations. Until the payment dispute is resolved through this legal process, residents fear prolonged blackouts and water shortages.
For now, JCT Colony remains in darkness—both literally and figuratively—awaiting a solution caught in legal and financial complexities.
JCT Ltd., established in 1946, was once a prominent player in India’s textile industry. However, the company faced significant challenges, including tight liquidity, non-availability of raw materials, and high finance costs. These factors led to sub-optimal plant operations and a net loss of ₹81.71 crore in the recent financial year.
In June 2025, the NCLT admitted a petition for the initiation of the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. Hasti Mal Kachhara was appointed as the Interim Resolution Professional to oversee the company’s affairs.
The mill’s chairman, Samir Thapar, faces legal issues, including allegations of criminal breach of trust for withholding employees’ Provident Fund contributions and a separate case for firing a gun during a confrontation with protesting workers.
Despite the appointment of an Insolvency Professional and the initiation of the CIRP, the resolution process remains complex and time-consuming. For the residents of JCT Phagwara Colony, the ongoing power and water crisis underscores the urgent need for a comprehensive and expedited solution to address both their immediate and long-term challenges.
As the insolvency proceedings continue, the future of the mill and the livelihoods of its workers hang in the balance, leaving the community in a state of uncertainty and distress.
JCT’s financial woes, culminating in the insolvency declaration in June 2025, trace back to operational challenges, including liquidity crunch, raw material shortages, and mounting losses. In October 2024, JCT entered the Corporate Insolvency Resolution Process (CIRP), appointing Interim Resolution Professional (IRP) Hastimal Kachhara to oversee proceedings. However, the process has been fraught with controversy and alleged irregularities.
A letter dated July 9, 2025, from the JCT Limited Ex-Employees Union to Binod Kumar, Managing Director and CEO of Indian Bank, reveals critical concerns: the company had availed working capital loans totaling ₹165.07 crore from a consortium including Indian Bank, State Bank of India, Punjab National Bank, Bank of Baroda, and Punjab and Sind Bank.
The letter alleges that Managing Director Samir Thapar sought to delay insolvency proceedings through legal stays and has been involved in the illegal sale or scrapping of mill machinery. It further accuses certain bank officials—primarily from Indian Bank—of attempting to replace the IRP under Thapar’s undue influence, threatening the integrity of the insolvency resolution.
Both Thapar and Executive Director Mukulika Sinha face FIRs related to criminal offenses, including withholding employees’ Provident Fund contributions and unauthorized disposal of assets. The union’s letter appeals urgently for transparent action to safeguard workers’ rights and uphold justice amid the turmoil.
The ongoing legal battles have left the community in limbo. Sub-Divisional Magistrate Jashanjeet Singh confirmed efforts to provide water but stated that restoring electricity depended on the mill’s management, now under IRP supervision.
As families endure the hardships of blackout and water scarcity, the fate of thousands of mill workers remains uncertain. With insolvency proceedings tangled in controversy and delayed by allegations of malpractice, the crisis threatens to deepen the economic and social impact on Phagwara’s working-class community.
Until a resolution emerges, JCT Phagwara Colony remains in darkness—both literally and figuratively—caught in a web of financial collapse, legal disputes, and human suffering.
