Iisco Md Gets Suspension Order, Staff Cry Foul

Former Indian Iron and Steel Co (Iisco) managing director G S Garcha has submitted to the Calcutta High Court, through his counsel D Roy Chowdhury, that he has received the chargesheet from the Government of India ordering his suspension from his post as Iisco managing director on alleged charges of corruption.

Garcha had filed a writ petition with the court last week challenging his suspension order.

Justice Barin Ghosh has fixed the case for hearing on February 29.

Meanwhile, the combined association of Iisco employees, Save Iisco Committee, has raised a strong protest with the government on Garcha's suspension, alleging that his removal would be a serious blow to the revival plans of the ailing steel major.

 

The employees' union, incidentally, has submitted its support for Garcha's petition challenging the suspension.

N C Roy Chowdhury and N Bhattacharya, counsel for the Government of India and Steel Authority of India Ltd (SAIL), respectively, told the court that Garcha was suspended under the Iisco rules for executives.

According to the chargesheet, "During the years 1995-1998, G S Garcha, was working as director, raw materials division (RMD), SAIL. During this period he approved award of contracts on a single tender basis."

The contracts are as follows:

i) SUP/WO/18/95/05 dated April 3, 1995 of Rs 38.97 lakh in favour of AMPS Electrofluids Industries.

ii) SR MGR(R)/WO/19/GS ATWAL/98/08 dated May 16, 1998 of Rs 30.38 crore in favour of G S Atwal & Co (Engineers) Pvt Ltd.

iii) SR MGR/(R)/WO/19/GS ATWAL/98/11 dated June 22/26, 1998 of Rs 44.75 crore in favour of G S Atwal & Co (Engineers) Pvt Ltd.

The chargesheet further states, "While according approvals, G S Garcha ignored certain lapses committed while processing the award of contract and thus violated Conduct Rule 4.1 (1) and 4.1 (2) and, thereby, committed misconduct of CDA rules (for executives) of Iisco."

In a statement to this newspaper, the Save Iisco Committee has countered that the suspension order against Garcha has a two-fold purpose. First, it is a personal vendetta by vested interests against Garcha and second, it will keep Iisco perpetually sick and cause it to be sold off to private parties at a throw-away price.

The employees association feels that if Garcha had been allowed to continue on an extended term beyond February 2000, Iisco would have been able to achieve zero-cash losses by March 2001, with a little help from SAIL and the government.

According to the committee, Garcha on taking over as managing director of Iisco had implemented and commissioned a Rs 16-crore twin hearth furnace, a project which was originally estimated to cost Rs 80 crore.

This represented the first un-aided effort by Iisco to move towards improvement using internally generated resources.