)
Hindustan Construction Co group chairman Ajit Gulabchand had to give up a large chunk of his Rs 10.66 crore salary for the year ended March 2013, after the Union corporate affairs ministry refused to approve his remuneration.
While the company paid Gulabchand a salary of Rs 10.66 crore, the ministry approved Rs 1.72 crore.
The excess was recovered from the chairman and has been included as other income in the company's profit and loss statement.
The company has also sought ministry approval for the chairman's remuneration for 2014 and 2015.
While Rs 10.66 crore was paid in 2014, no amount was paid to Gulabchand in 2015, pending government approval.
In its profit-and-loss statement, HCC said, “The company had paid a remuneration of Rs 10.66 crore during the year ended March, 2013, which was in excess of the limits specified in the schedule XIII of the erstwhile Companies Act, 1956.”
The ministry had approved a remuneration of Rs 1.72 crore, against which the company made representations to the ministry to reconsider the firm’s application and okay the entire remuneration paid.
Proxy advisory firms had objected to Gulabchand's salary, saying it was not proper for directors to draw such a high salary when the company was in in the midst of corporate debt restructuring.
