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This is an archive article published on September 27, 2011

Essar GM arrested for allegedly funding Naxal groups

General Manager of Essar Steel J S Verma was arrested in Dantewada area of Chhattisgarh.

General Manager of Essar Steel J S Verma was arrested for allegedly conspiring in funding Naxal groups in Dantewada area of Chhattisgarh.

Verma is the third person to be arrested in the case filed by the Chhatisgarh police after they arrested a contractor B K Lala who was allegedly giving money to Maoists groups in return for ‘protection’ for its pipeline.

“We have arrested General Manager of Essar Mr Verma in the case of (alleged) passing of money to extremist groups,” Superintendent of Police (Dantewada) Ankit Garg said.

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Verma was produced before a Dantewada court which remanded him to two days of police custody.

Police have registered a case under section 121 of IPC (waging war against the state) and other sections of Unlawful Activities (Prevention) Act.

Essar’s documents were scrutinised and Varma was quizzed in the case after Lala,arrested for Essar’s alleged money transfer to Maoists,gave a statement to police in this regard.

Lala,a building contractor with Essar Steel Ltd,and Lingaram Kodopi were arrested early this month.

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In a written communication,Essar strongly refuted the allegations of making payments to Maoists groups.

“Essar would like to state that such baseless allegations are being made to hurt the image and reputation of the group which is a law-abiding corporate.

“Essar has been making meaningful contribution for the growth of the country for the last forty years. It has always put country¿s interest first in all its dealings”,the company said.

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