The war of words between Suzuki Motor and the Govern-ment of India continued yesterday, with the industry ministry rejecting Suzukis charges of incompetence against Maruti Udyog managing director RSSLN Bhaskarudu and denouncing them as false and baseless.
Challenging the points raised in Suzukis press release on Tuesday as factually incorrect and motivated, the industry ministry asserted that it needs to be borne in mind that Bhaskarudu has been a joint managing director since 1993 and was officiating as the managing director when RC Bhargava was on leave/tour.
Responding to Suzukis claim that Bhaskarudus incompetence was revealed by his failure to answer important queries at the MUL annual general meeting, the release said: The fact is that the questions that were raised while the annual accounts for 1996-97 were discussed, related to a host of items, including sundry debtors, doubtful deposits, foreign currency risk control. Interestingly, all these questions related to the period that Bhargava was the MD.
It is presumptuous to draw any conclusions on the competence of any person on the basis of the fact that detailed answers to a host of questions were promised to be sent afterwards, stated the release. On Suzuki Motors refusal to pass the annual accounts, which were cleared after MUL chairman P Sengupta using his casting vote, the government release stated: The annual accounts for 1996-97 were also discussed and passed in the board meeting held on July 7, 1997 when Bhargava (who was a Suzuki nominee) was the MD.
The industry ministry also refuted Suzukis allegation that the government had breached the joint venture agreement by nominating both the managing director and the chairman.
The fact is that before the resolution regarding the appointment of R C Bhargava as chairman could be taken up at the AGM, the Suzuki Motor representatives substituted a letter to the MUL chairman, stating that they would like to supersede the resolution and instead propose the nomination of Y Saito as chairman. However, when this resolution was taken up for discussion, the Suzuki Motor representatives stated that they withdrew the resolution themselves.
The release adds: It was incidentally pointed out by a government shareholder that the present chairman would, as per the agreement and articles of association, continue up to the fifth AGM starting from 1996. The question of appointment of chairman was neither discussed nor put to vote as SMC withdrew this particular resolution. Whatever was done was done according to the letter and spirit of the agreement.
