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Shiv Sena’s Ravindra Waikar and BJP’s Pankaja Munde resigned from private posts after Chandrakant Patil. (Source: Express archive)
Days after Maharashtra minister Chandrakant Patil resigned as director of a private firm following a report in The Indian Express which led to questions being asked about possible conflict of interest, two more state ministers decided to step down from their posts in private companies.
BJP’s Pankaja Munde, minister for women and child development, rural development, water conservation and employment guarantee scheme, resigned from two private firms in which she was director. Munde said she had also submitted her resignation to three more companies where she was on the board of directors.
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Shiv Sena’s Ravindra Waikar, minister for housing, who was on the board of a firm operating in the housing, said he had informed the company, Icchapurti Infrastructure Pvt Ltd, that he wanted to resign.
Last month, Chandrakant Patil, the public works department minister, resigned from Kolhapur-based Telematic Interactive Private Limited, which supplies equipment such as biometric readers, fax machines and surveillance cameras, after questions were raised over possible conflict of interest.
The model code of conduct for ministers says a minister, within two months of assuming office, should sever all connections, short of divesting himself of ownership, with the conduct and management of any business that he was interested in before being appointed minister. It says that the minister may transfer his interest, and even ownership and management to any adult relative associated with the conduct or management of the business, except the spouse.
On March 22, The Indian Express reported that the BJP-led Maharashtra government had at least three cabinet ministers — Munde, Patil and Deepak Sawant — and a minister of state, Waikar, who continued to be on boards of private firms, according to the Registrar of Companies.
Munde told The Indian Express: “I was always a working woman before I entered active politics. But after I started contesting elections, I resigned from almost all companies I was associated with, except a few where there were no transactions and were not related to the government. On some, my husband insisted that I stay on as director though I had no role in the management since he believed it would bring him luck. I have now resigned from all these firms.”
According to RoC data, Munde was on the boards of at least five companies listed under her name — Pankaja Palwe after he marriage. These were Ridhi Sidhi Shares Pvt Ltd, a Delhi-based financial firm, Thane-based Nandagopal Milk and Milk Products Pvt Ltd, and three Pune-based firms, Supra Media Pvt Ltd, Aryaman Publicity Pvt Ltd and Aryaman Spaces Pvt Ltd.
Munde sent resignation letters dated March 23 to Aryaman Publicity and Supra Media, saying she will not be able to continue with her position as director in these firms with immediate effect. The companies subsequently filed her notice of cessation with the RoC. She said there were no transactions in the other companies, and that she had submitted her resignation to these firms as well.
Waikar, on the board of Mumbai-based Icchapurti Infrastructure Pvt Ltd, said he had informed the company about his decision to resign. “I have started the process of handing over my directorship with the company to someone else and resign. It will take some time to complete formalities. If it is there in the rules, and now that I am aware about it, why unnecessarily leave a window for any questions about my morality and ethics?”
Waikar had earlier said that being a director of a private firm cannot be called conflict of interest unless the company has dealings with the government. “I still think ministers should be allowed to have a source of income, but if there is a rule prohibiting it, I should follow it,” he said.
Health Minister Deepak Sawant, who is on the board of Mumbai-based Anideep Eye Hospital and Institute Pvt Ltd, was not available for comment.
RoC data also showed two other ministers of state, Shiv Sena’s Deepak Kesarkar and BJP’s Pravin Pote Patil, were directors with private firms, but both said they had resigned from the companies a long time ago and the records were yet to be updated with the RoC. Kesarkar’s firm, Innovators Resorts Pvt Ltd, completed all formalities of filing his resignation with the RoC on March 31.
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