Karnik told reporters that the 200-odd Mantralaya employees who staged a protest on September 24, had been misled by a group of about 20 disgruntled persons, who could not get membership in the cooperative housing societies proposed on government land. He said that the sanghatana, which was a federation of union from various government departments, has been pursuing the matter with the government for the last few years. The enrollment of members had to be stopped on government orders in 1996, and many employees, who could not be enlisted in the list of 2,600 members, began a smear campaign against the sanghatana.

The State Government has decided to grant a five acre plot at Oshiwara (Andheri) and a three acre plot at Mulund for thecooperative housing societies formed by his federation. He said that more land had been demanded to house all the 2,600 enrolled members. He alleged that for the past two years, some disgruntled elements were trying to oppose his federation and had succeeded in wooing about 200 employees, who participated in the recent agitation in Mantralaya.

Referring to the negotiations on the implementation of the recommendations of the Fifth Pay Commission, he said that his federation was satisfied with the talks. He said that it took at least three months for hiked salaries to reach employees after the government issues a GR (Government Resolution) and the employees were prepared to wait for it. Karnik pointed out that his federation was against the recommendations of the pay commission -- like the introduction of contract system in government departments, curtailment of staff, voluntary retirement schemes, and a ban on new recruitment.