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Assam: Digboi Refinery cites contractual process in Rs 20 lakh dues controversy

Assam: Digboi Refinery cites contractual process in Rs 20 lakh dues controversy

NORTHEAST NOW 1 week ago

Reported by: Laxman Sharma

Digboi: The controversy surrounding nearly Rs 20 lakh in alleged unpaid dues owed to local vendors supplying the canteen at the Digboi Refinery of Indian Oil Corporation Limited has intensified, even as the refinery management issued an official clarification stating that the matter is being handled through contractual mechanisms.

In a rejoinder sent to Northeast Now on Tuesday, the management of Indian Oil's Assam Oil Division (AOD) said that the refinery canteen is operated by M/S Vidya Caterers under a contractual agreement and that responsibility for clearing payments to local suppliers lies with the contractor.

According to the refinery, the issue was immediately taken up with the contractor for "appropriate resolution of any pending dues, if found payable," and follow-up action is being carried out as per the contractual terms.

The clarification came after allegations emerged that several Digboi-based suppliers providing vegetables, groceries, meat, and packaged drinking water to the canteen had not been paid for months, pushing many small businesses into severe financial hardship.

Sources said the matter has now reached the refinery headquarters, which has reportedly sought a detailed report from the local administration, indicating that the issue is being monitored at the corporate level.

In its response, the refinery reiterated that Indian Oil follows a "zero-tolerance approach towards any form of misconduct, intimidation or unethical practices" and reaffirmed its commitment to maintaining fair and transparent engagement with stakeholders.

However, the rejoinder allegedly did not address several serious allegations linked to the controversy.

Most notably, the clarification made no mention of Dipak Bhuyar, the former canteen in-charge and an AOD employee who reportedly handled canteen-related operations under the supervision of Deputy General Manager (Employee Management Services) Jagadish Chandra Das and Chief Employee Relations Manager Sandeep Karketta.

The refinery also remained silent on allegations that abusive and derogatory language was allegedly used against local vendors, as well as claims that commissions were demanded from suppliers.

Another key issue left unanswered was an email reportedly sent by M/S Vidya Caterers to the refinery administration, requesting officials not to procure edible items in the contractor's name.

Questions have now emerged over why certain AOD officials allegedly continued placing procurement demands on local vendors despite the communication from the contractor. The apparent disregard of the advisory has raised concerns about the authority under which such purchases were made, whether contractual procedures were bypassed, and who would ultimately be held accountable.

The absence of any clarification on these allegations has further intensified concerns regarding administrative oversight and accountability within the refinery.

M/S Vidya Caterers continues to run the Digboi Refinery canteen under its second consecutive contract, which is reportedly valid until 2027 unless revised or terminated under contractual provisions.

Sources further claimed that the former canteen official was later removed from the assignment after the allegations surfaced.

The controversy has also revived debate over the outsourcing of essential services in major public sector establishments.

Digboi based businessman and former pro-talk ULFA leader Jiten Dutta said repeated disputes indicate deeper flaws in the outsourcing system.

"As long as outside agencies continue to control essential services at AOD establishments, such issues will persist. There is very little sensitivity towards local concerns, while profit remains the primary motive, leaving small vendors vulnerable," he said.

For the affected suppliers, the immediate concern remains the release of long-pending payments. But the larger questions now facing the refinery relate to accountability, administrative responsibility, and whether internal systems designed to protect local stakeholders functioned effectively.

With refinery headquarters now monitoring the issue and the management publicly reiterating its zero-tolerance stand on misconduct, focus is gradually shifting beyond the unpaid dues to whether the unanswered questions raised in the rejoinder will be addressed through a credible and transparent inquiry.

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Disclaimer: This content has not been generated, created or edited by Dailyhunt. Publisher: North East Now