MoD suspends BEML chairman in Tatra truck case

Fair probe required his removal, CBI told MoD

The ministry of defence (MoD) on Monday suspended V RS Natarajan, chairman and managing director of BEML, on a recommendation from the Central Bureau of Investigation (CBI) to ensure fair investigation in the procurement of heavy duty trucks for the military from the Czech company, Tatra.

The charge of CMD has been given to P Dwarkanath, the seniormost functional director, presently handling its rail & metro business division. BEML is owned by the government and answers to the MoD.

CBI told MoD it was not possible to conduct a fair investigation if Natarajan continued to head BEML, as there were charges against him. It had interrogated Natarajan in April, after General V K Singh, the then army chief, alleged (in March) that he had earlier been offered a Rs 14 crore bribe by a former senior officer to clear the supply of 600 Tatra trucks supplied by BEML to the army. Subsequently, defence minister A K Antony had approved CBI interrogation against Natarajan in the case. BEML has been supplying Tatra trucks for use in the defence forces since the mid-1980s. It had entered into an agreement in 1986 with the company for trucks and other equipment for civil and military applications.

Announcing Natarajan’s suspension, defence ministry spokesperson Sitanshu Kar said, "The government has put the CMD of BEML under suspension, following a recommendation by the CBI that he should be kept away from the post to ensure fair investigation. The CBI is currently investigating into various charges against Natarajan." Natarajan has been the longest serving CMD of BEML, headquartered in this city. He took charge as CMD on December 1, 2002. His term was to ends on September 30 this year. Saying he was innocent, Natarajan told reporters after handing over charge: “I respect the decision of the government. I will come out clean in the case.” He refused to give details on the issue. The move comes a few days after the MoD issued a showcause notice to Natarajan for sending a legal notice of a defamation charge on Gen V K Singh, who retired recently as army chief, for doing so without its permission.

On June 1, the day after Singh’s retirement, Natarajan had told a press conference here that he would ask the former chief to apologise for alleged defamatory statements against BEML and its products.

“As CEO of the company, I deny all allegations of V K Singh, as they are absolutely false, motivated, damaging and defamatory. If he does not apologise, I will file a defamation suit against him,” he said. However, Singh had refused to apologise, saying he’d only stated the facts.

BEML has three main businesses—mining & construction, defence & aerospace, and rail & metro. It reported a flat turnover of Rs 3,615 crore for 2011-12, while its net profit dropped 62 per cent fom the year before, to Rs 57 crore. The stock closed at Rs 375.70 on Monday, down 2.5 per cent over the previous close on the Bombay Stock Exchange.