Asifabad: Sirsilk occupants anxious after revenue officials issue eviction notices

Nearly 4,000 occupants of the closed Sirsilk factory's quarters and lands in Kagaznagar are worried after revenue officials issued eviction notices to 3,800 people. Bidders who purchased the 200-acre property approached the High Court over delayed possession.

Kumram Bheem Asifabad: Around 4,000 workers and occupants of residential quarters and lands belonging to the closed Sirsilk factory in Kagaznagar have expressed concern over notices served by revenue officials.

On November 2, revenue officials issued notices to 3,800 occupants, asking them to vacate the quarters and lands within a week, citing an order of the High Court. The officials were directed to evict the illegal encroachments and hand over the lands to the liquidator under Sections 456 (1A) and 456 (1B) of the Companies Act, 1956.

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The occupants regretted that their lives would be thrown out of gear if they vacated the residential quarters and lands. They argued that they had been residing in the factory quarters and on its lands for a long time, taking up small-scale jobs. They reasoned that they would become homeless if forced to leave.

Meanwhile, BRS leaders slammed the Congress over the notices issued to the occupants. Former MLA Koneru Konappa and BRS leader Dr RS Praveen Kumar alleged that local MLA Dr Harish Babu and MLC Dande Vittal had their eyes on the lands. They accused the MLA and MLC of trying to encroach upon the lands by issuing the notices.

Officials said that bidders had purchased the factory’s quarters and lands, measuring nearly 200 acres, after the assets were auctioned by an official liquidator in 2025. However, the quarters and lands were already occupied by workers, locals and people from neighbouring villages. The bidders approached the High Court when the lands were not handed over to them.

Background

The silk cloth manufacturing unit was established on the outskirts of Kagaznagar town by the then Nizam government in 1939, creating employment opportunities for 3,745 workers from several parts of the erstwhile Andhra Pradesh. It produced fine-quality artificial silk. The management of the factory was handed over to industrialist Birla in 1952.

The factory slipped into the red due to losses in 1984, resulting in the lay-off of 50 per cent of its workers. The factory was shut down due to a financial crisis in 1985, when the State government stopped supplying raw materials such as cotton, coal and alcohol at subsidised rates.

The silk manufacturer was revived following a protest by workers in 1994. It was, however, closed due to losses in 1995, forcing many workers to migrate to other places. Some workers allegedly died by suicide after losing their livelihoods and undergoing a severe financial crisis. Poll promises by candidates of political parties to revive the sick factory and restore the town to its past glory remain a distant dream.