The International Finance Corporation (IFC) of World Bank group decided to investigate the claims of labour and human rights abuses at Tata Global Beverages Ltd plant in Assam on 14 February 2014.
The decision to probe the claims was taken following the filing of complaints by three non-governmental agencies from Assam on behalf of the workers in February 2013. It highlights the concerns about inadequate compensation, and poor health and hygiene conditions at the tea plantations.
The IFC had jointly financed the tea plantation project with tea giant Tata Global Beverages Ltd in Assam. The project is being run by Amalgamated Plantations Pvt. Ltd (APPL).
The IFC had contributed 7.8 million dollar in the 87 million dollar Tata Tea project. The project was aimed at promoting the idea of shareholder workers and helping to create more than 30,000 permanent jobs.
APPL was set up in 2009 to acquire and manage tea plantations previously owned by Tata Global Beverages. Tata Global Bevarages is the second largest tea brand in the world.
Tata Global Beverages took a 41 percent stake in APPL and the IFC took 20 percent with the remainder held by workers and smaller firms.