Videocon Telecommunications, subsidiary of Videocon Industries, is winding up its operations in Kerala circle by the end of June following the cancellation of 2G licences by the Supreme Court. The company has started terminating employees working for the circle.
The termination letter issued to the employees by Resource Square Solutions, one of the companies providing recruitment services for Videocon Telecommunications in four circles, including Kerala, stated that the telecom service provider was shutting down operations in the circle.
“Based on the discussions you had with the senior team at Videocon Telecommunication they are winding up their operations in Kerala due to the telecom licence issue. As updated by them earlier, the last working day would be June 24, 2012. Please treat this as an official communication from Resource Square Solutions. The salaries for the month will be settled as a full and final settlement in the next month,” it said in a letter issued to an employee.
Around 75 people are working for the Kerala circle and most of them have received termination letters during the past few days. People hired by Videocon directly too have received their termination letters.
“The company (Videocon Telecommunications) hereby puts you to notice that your Letter of Appointment shall stand terminated with effect from June 21, 2012, upon your completion of two months notice period as per Clause 5 of the Letter of Appointment,” it said in a letter issued to an employee. However, the company has not cited reason for the termination. Though the employee wrote back to the company seeking reason, he did not receive a reply.
The Kerala circle had around 60,000 subscribers a few months back, but recently the number has come down to 15,000, officials in the company said. However, they declined to comment on the closing down of operations in the circle.
When asked about the development Venugopal Dhoot, chairman of Videocon Group told Financial Chronicle, “We are closing down operations in Kerala post the cancellation of 21 licences by Supreme Court. We do not have plans to wind up operations of other circles”. Videocon’s 21 licences were part of the 122 2G licences cancelled by the Supreme Court while giving orders on the cases related to the 2008 scam-tainted sale.
After receiving the licences, Videocon Telecommunications, known as Datacom at that time, did not start operations for more than two years due to an internal dispute. In February 2010, Datacom was re-branded as Videocon Telecommunications and the services were rolled out in the respective circles. As of January 2012, the company had almost 5.4 million users.
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