In a first, Modi government terminates service of PSU CMD
A recent meeting of the Appointments Committee of the Cabinet (ACC) has confirmed the termination of Bridge and Roof Company (India) Limited CMD, M K Singh. B&R (I) Ltd. is a miniratna public sector company that has registered a meagre net profit of Rs 5 crore against a turnover of Rs 1710.18 crore.
Following the dismal performance of this PSU, the Department of Heavy Industry has recommended divestment. Till then, they have recommended merger of this company with another PSU EPI (Engg Projects India Ltd).
An FIR has been registered against M K Singh on the directive of the CVC. Under Singh’s leadership the PBT ( profits before tax) of the company has come down from Rs 68.4 crore in 2014-15 to a mere Rs 5 crore in 2015-16.
This has happened due to encashment of Bank Guarantees to the tune of Rs 25 crore. DHI had served three showcause notices to Singh before issuing the suspension order on May 26, 2016: a) For appointing an Indian citizen in Dubai as foreign agent for ESSAR Kuwait Refinery Project Contract and remitting an advance against commission of Rs 10.66 crore in foreign exchange inspite of SBI’s negative appraisal on issuance of Bank Guarantee to the ESSAR Projects due to poor global rating and anticipated termination of work order on February, 2, 2016.
Subsequently, Rs 10.35 crore has been received back in Indian rupee in B&R from Abu-Dhabi Mumbai Bank which is ascertained as a money laundering transaction under FEMA violation. b) Another showcause was issued due to misuse of power in HR and Legal department where an amount of Rs. 65 lakh was approved from the company’s fund for the personal sexual harassment criminal court case of M K Singh. c) Secretary, DHI issued a show cause to Singh since he misused his power by not submitting the applications of four internal eligible candidates for the post of Director Project Management which were received well in time by the HR department but were deliberately not submitted to PESB within the scheduled date in connivance with M Subhahmaniyam, Under Secretary, DHI who has been also served with a show cause notice by the vigilance department of DHI recently. Now, on the request of Niti Ayog, DHI has forwarded proposal of three CPSE’s to Niti Ayog on August, 26, 2016, for merger and disinvestment.