MMTC boss comes under SC scrutiny

The Supreme Court, today, issued notice to the Central government on a petition seeking the quashing of the appointment of S D Kapoor as the chairman and managing director (CMD) of Minerals and Metals Trading Corporation (MMTC).

He was appointed despite reports from the Comptroller and Auditor's General (CAG) and the vigilance department as well as an adverse ruling by the Delhi high court. The corporation listed large-scale financial irregularities during Kapoor's term and sought a CBI enquiry into his role in them.

The Centre for Public Interest Litigation submitted before a Bench, consisting of Justice Santosh Hegde and Justice S B Sinha, that the appointment by the previous NDA government without the mandatory vigilance clearance reeked of favouritism and arbitrariness. The court has asked MMTC and Kapoor to reply to the allegations.

Kapoor acted as the general manager of the corporation since 1985 and was appointed director in 1992. He became CMD in 1997 without vigilance clearance and was continuing in the post ever since.

During this period, the Delhi high court had quashed his appointment, while the CAG had indicted the corporation for corrupt practices, causing loss to the nation. A parliamentary standing committee had also unearthed several cases of irregularities.

The Central Vigilance Comission had recommended major penalties against several officers of the MMTC after a CBI investigation but little action was taken against them. The parliamentary committee felt that "these deals could be only the tip of the ice berg and there could be many more shady deals which need to be unearthed."

However, though the vigilance officer in the Ministry of Commerce was removed, Kapoor continued in his position till January this year. He was given an extension of three years until his superannuation.

The petitioner appealed to the court to take all these into account and quash Kapoor's appointment.