Darjeeling Organic Tea Estate Pvt Ltd, owners of celebrated gardens such as Happy Valley and Ambootia, has offered to clear a quarter of the outstanding wages to the workers in a bid to end the impasse surrounding the second largest producer of Darjeeling tea, but the proposal failed to impress the largest union in the hills.

The tea union of the Bharatiya Gorkha Prajatantrik Morcha, a party at the helm of the Gorkhaland Territorial Administration (GTA), summarily rejected the proposal and threatened to intensify their agitation from Monday.

Responding to the initial reaction of the unions, a senior official of DOTEPL cautioned that the company may face bankruptcy if the operations are not normalised soon enough, leading to further distress to the workers.

The company owns 10 tea estates in the hills, employing about 7,000 workers, who have not been paid for four fortnights.

In a meeting called by Darjeeling DM S.Ponnambalam on Friday, it offered to clear a fortnight due immediately.

“They (DOTEPL representative) assured us they would be clearing one fortnight wages within next Wednesday. We have asked them to give assurance in writing,” said Ponnambalam.

The district administration also directed the company representatives to visit Darjeeling next week to discuss their plan in a tripartite meeting, involving the unions.

“They have agreed to the meeting,” the DM added. DOTEPL officials joined Friday’s meeting by video conference.

Production has come to a standstill in the wake of outstanding salaries and wages, amounting to about Rs 3.5 crore.

DOTEPL needs about Rs 100 crore to clear dues to workers and banks.

It has been trying to rope in investors to secure funding but the negotiations must overcome the legal challenge posed by erstwhile majority owner, the Bansal family.

The current European investors, who are in a majority, are unwilling to inject fresh cash in the ailing business, alleging siphoning of funds by Bansals.

The company has arranged interim finance to pay up the workers.

“We made a very fair offer, in my opinion. Rejecting it will lead to further suffering of workers. If the workers do not go back to work, the company will go to the NCLT or the leases will be cancelled,” Rembert Biemond, acting chairman of DOTEPL, said.

He, however, expressed hope of a resolution under the aegis of DM and the labour secretary who were present in the meeting on Friday.

BGPM’s tea union rejected paying outstanding instalments.

“We do not accept this part payment policy. We will start a relay hunger strike in front of the manager’s bungalow in all the 10 tea gardens from Monday,” said J.B. Tamang, union working president.