In 2009, IFC made an equity investment in Amalgamated Plantations Private Limited (APPL). APPL is the second-largest producer and supplier of tea in India, employing over 28,000 permanent workers and over 23,000 temporary workers. Approximately 155,000 people live on APPL’s 25 tea plantations. 

The compliance appraisal of IFC's investment in APPL was initiated by the CAO Vice President in May 2012 based on unresolved concerns submitted by the International Union of Food Workers (IUF) to IFC's Communication Portal for Performance Standard 2 (PS2). Concerns in relation to the investment were triggered by incidents on two APPL plantations in 2009/10, which led to disputes with unions representing APPL workers. After completing a compliance appraisal in January 2013, CAO concluded that the issues warranted further investigation. 

In February 2013, CAO received a complaint from three civil society organizations (CSOs), on behalf of tea workers employed at and living in the company’s tea plantations (Tata Tea-02). The complaint raised concerns about labor and working conditions at three different plantations, specifically citing long working hours, unpaid compensation, poor hygiene and health conditions, and a lack of freedom to associate among plantation workers. Furthermore, the complainants questioned the worker share-buying program, contending that workers were pressured into buying shares, often without proper information about the risks of such an investment. This complaint was transferred to the Compliance function in November 2013. 

In February 2014, CAO completed its compliance appraisal, deciding that the issues raised in the complaint merited further investigation. For purposes of the compliance investigation, the Tata Tea 01 and Tata Tea-02/Assam cases were merged after appraisal.

In November 2016, CAO published its combined Compliance Investigation Report. The CAO investigation found several non-compliance issues with IFC's assessment and management of environmental and social (E&S) risks related to their investment. Despite the potential for significant development impact, IFC's pre-investment E&S review was inadequate, leading to poorly detailed mitigation measures that failed to address key risks. During supervision, IFC did not ensure compliance with its Performance Standards (PS), leaving E&S issues raised by complainants unresolved. The investigation also identified specific non-compliance in IFC’s handling of living and working conditions on plantations, use of banned pesticides, information disclosure, consultation, and response to security incidents. 

In response to CAO's compliance investigation, IFC acknowledged that APPL was implementing an action plan to address issues in human health, worker safety, housing, and sanitation. IFC committed to: (a) commissioning a third-party annual audit and worker perception survey for APPL's 25 estates; (b) updating its legal opinion on APPL's compliance with national minimum wage laws; and (c) ensuring the action plan was disclosed to and consulted with workers. 

CAO Monitoring Reports 

In January 2019, CAO published its first Monitoring Report, indicating that APPL reported some progress on the action plan. However, complainants claimed that workers were not consulted and expressed concerns about the progress and quality of implementation. CAO communicated with IFC staff, complainant representatives, and the IFC client in addition to reviewing project documentation. CAO’s first monitoring report concluded that IFC's supervision was limited and did not satisfactorily address CAO's non-compliance findings. CAO remained concerned that IFC's supervision lacked the necessary information to assess client compliance with PS, leaving IFC without assurance that compliance was on track. 

In May 2024, CAO published its second Monitoring Report (included in the Q4 FY2024 Omnibus Report, available in English), noting some progress in implementing the Environmental and Social Action Plan (ESAP), but highlighting that critical infrastructure improvements, such as new or repaired houses and sanitation, were still incomplete and lacked identified financial resources.
 
In April 2026, CAO published its third Monitoring Report (included in the Q3 FY2026 Omnibus Report, available in English). The report noted that longstanding commitments under IFC’s management response, including infrastructure improvements, independent audits, and sector studies remain unimplemented. These gaps persist despite the extended timeframe since CAO’s compliance findings in 2016. As this project remains an active investment of IFC, CAO decided to keep this case under compliance monitoring.