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This is an archive article published on June 10, 1998

MUL deal a sellout in name of swadeshi : Oppn leaders

NEW DELHI, June 9: Opposition parties today dubbed the coalition government's deal with Japanese auto major Suzuki variously as clandestine ...

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NEW DELHI, June 9: Opposition parties today dubbed the coalition government’s deal with Japanese auto major Suzuki variously as clandestine and corrupt, pseudo-secular, sellout in the name of swadeshi. They alleged that it was negotiated by the Prime Minister’s Office bypassing the Industry Ministry in an “absurd bid to soften the rap of Japanese sanctions”.

The deal had led to the government’s powers in top appointments in Maruti Udyog Limited (MUL) being clipped a group of leaders in particular S Jaipal Reddy (JD), Gurudas Dasgupta (CPI), Mohammed Salim (CPM) and Vayalar Ravi (Congress) told reporters.

They also demanded Industry Minister Sikander Bakht’s resignation and claimed that neither the Law ministry nor the Attorney General was consulted when a case against Suzuki was pending in an international court.

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The leaders said that the government’s case was strong enough and that there was no need to succumb to pressure from Suzuki. The company, they pointed out, hardly had a seven per cent sharein the global automobile market and Indian operations accounted for half of it.

The Opposition leaders said that it was absurd that the government was saying that the out-of-court deal was struck to soften the impact of Japanese sanctions. Suzuki was a minor player to have an impact on the Japanese government’s decisions on sanctions, they added.

According to them, Suzuki which had invested Rs 103.41 crore in Maruti Udyog had reaped benefits amounting to Rs 342.59 crore. They had sold over-priced components amounting to Rs 4200 crore, they said.

Alleging that the deal was struck without the knowledge of Union Cabinet, the group of MPs from various parties told media persons that it was a blatant violation of the original agreement signed between Suzuki and government in 1982. The MPs said the government had agreed to curtail the tenure of its nominee managing director R S S L N Bhaskarudu by nearly three years to elevate Jagdish Khattar, who was removed from the Maruti board by the United Frontgovernment for being “too close to Suzuki”.

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They said central trade unions and Opposition parties would hold a march to Parliament House on June 11, to protest against the deal.

CPM fusillade: The CPM, in particular, said, “In the name of swadeshi, the BJP has virtually handed over Maruti’s management control on a platter to Suzuki”. The politburo of the party said it disapproved of the “surreptitious” manner in which the government had gone in for a “total sellout” of MUL.

The CPM said that the fact that Suzuki "has been given complete control without investing a single yen in the company constitutes a total betrayal of India’s interests."

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