JUDGMENT
1. Heard parties. Maharashtra Krishna Valley Development Corporation (M.K.V.D.C) was established under the Maharashtra Act XV of 1996 for promotion and operation of Irrigation Projects, Command Area Development and Schemes for generation of Hydro Electric Energy to harness water of Krishna river allocated to the State of Maharashtra under the Krishna Dispute Tribunal Award.
2. The jurisdiction of the Corporation extends over the irrigation works in 8 districts in Maharashtra State. The Corporation started functioning with the establishment comprising of 2 Regional Chief Engineers, 13 Circles, 69 Divisions and 358 Sub-divisions for carrying out its objectives. In first five years funds were made available to the Corporation by the State Government. However, the State Government has now decided to curtail establishment expenditure of the Corporation. The Central Government has also issued guidelines to restrict establishment expenditure upto 20% of the total cost. It appears that from 2001-2002 response for the bonds of the Corporation has become lesser and in the year 2001-2002 only Rs. 506 crores could be raised through borrowing and the Government contribution was also reduced to Rs. 30 crores. The State Government has therefore directed the Corporation to take review of the on-going construction works and to slow them down significantly and also to take recourse to stoppage of works wherever possible in order to limit construction expenditure within the reduced outlay as well as not to increase further liability. In the light of the Government directive the Corporation has taken decision for closure of 3 Circles, 11 Divisions and 68 sub-divisions with a view to curtail establishment expenditure. The offices selected for closure were such that they had relatively lesser work load, than those under non-closure and also field level convenience of works management and administrative control was also seen.
3. The Corporation has decided to absorb the Class III and Class IV staff in the vacancies under adjoining non-closure offices to the extent possible on the basis of seniority and remaining employees will be sent to Central Surplus Cadre Cell under the Finance Department of Government where they will be suitably absorbed at Government level as per the need and requirement of the Government. In the affidavit-in-reply filed on behalf of the Corporation it has been categorically stated that not a single employee will be removed from service and all the employees will be absorbed either in the service of the Corporation or State Government. The decision to close the offices is based on financial consideration and has been arrived bona fide with a view to curtail the establishment expenditure of the Corporation. It is not permissible to sit in appeal over the policy decision of the Corporation. Petition is dismissed.
4. As regards seniority, petitioners are free to adopt appropriate proceedings, if occasion arises.
5. All the parties concerned to act on the ordinary copy of this order duly authenticated by the Private Secretary of this Court.