The trajectories of the closure of mills in India over the last hundred years or more have become a social phenomenon. The trend of such occurrences is a worldwide sociological issue leading to several causes of shutdown/closure. It has many adverse social consequences like joblessness, increase in unemployment, affecting the lives of employees in terms of economic status, lifestyle, medical treatments, education of children, displacement and poverty. The closure of mills is a process of deindustrialization that generates a decrease in economic production and entails job and income loss, with job strain and increased exploitation. In this paper, the author  has tried to analyse the condition of the Nagaon Paper Mill (NPM) and Cachar Paper Mill (CPM) in Assam, owned by Hindustan Paper Corporation Ltd. The mills were liquidated in March, 2017 and October, 2015 respectively. Suppliers have not got their money; employees have suffered a lot and have not received their salaries for more than 56 months. Four persons committed suicide and about 115 died so far due to ill health, lack of proper treatment etc. because of the financial crisis. Students are suffering due to poor financial condition preventing them from higher studies. Many of the workers are working as daily labourers and producing vegetables for the market. Some of them are doing small business or joining private jobs. Finally, the Chief Minister of Assam distributed a relief package of Rs. 810.02 Crore for the benefit of the employees.