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Journalism of Courage
The Ministry of Corporate Affairs (MCA) is studying the recent judgment in the Bhopal gas tragedy case to find out if it can take any action against Keshub Mahindra,then chairman of Union Carbide India Ltd.
The ministry officials today met for the first time to discuss the issue and explore various options available with the ministry.
Sources told The Indian Express that the ministry was studying the judgment by a Bhopal court to ascertain if there is a case to act against Mahindra. The sources said there were certain provisions in the Companies Act,1956,under which a director on the board of a company can be refrained from the directorship if he has done any offence involving moral turpitude. Section 203,274 (1) and 283 say that the office of director would become vacant if,he is convicted by a court of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months.
However,Minister of Corporate Affairs Salman Khurshid told The Indian Express,It (the issue) is only coincidentally related to the corporate affairs because he (Keshub Mahindra) was chairman then… its only incidental… well,right now the matter has not reached that stage… right now the trial court has given a judgment and the punishment part has been suspended by the trial court itself…we can act from any point of view only if the judgment is final and can therefore be used as basis for any action…but for for that we will wait for the final judgment.
Mahindra,chairman of Mahindra and Mahindra Ltd,is on the boards of many companies including Mahindra Ugine Steel Co Limited,Housing Development Finance Corp Ltd,Kema Services (International) Pvt Ltd,Tech Mahindra Foundation,Mahindra Holdings Ltd and Bombay Dyeing.
The government is facing deafening criticism over the soft court verdict,in which eight accused,including Mahindra,were convicted and awarded a two-year imprisonment.
