The factory owned by private people, began functioning from 1991. Around 70 workers were working in the factory. In a later development the Karnataka State Finance Corporation took the reigns of the factory and auctioned it.
Though the reports in newspapers claimed that the ESI, PF and Gratuity would be cleared by the company which buys the factory the workers have not received any amount, they said. They also alleged that Corporation has devalued the price of the factory by auctioning it at Rs 1.20 crore though it is worth over Rs 5 crore.
Workers have demanded that the company which bought the factory should not be given the control of it unless the workers dues are cleared.