PRESS RELEASE
FACTS ABOUT BEML MIDWEST JOINT VENTURE ISSUE
In sequel to news telecast in ND TV on 18th
April 2012, wherein BEML Limited (BEML) has been falsely
projected as a wrong doer in the Joint Venture with Midwest
Granite Pvt. Ltd., (MGPL) together with false statement of
Shri Raghava Reddy, one of the Joint Venture partner of BEML
Midwest Limited (BMW) and exhibited the legal opinion
document of ALA attached to the CID, Hyderabad, the following
facts are furnished in the best interest of truth :
• First and foremost, the exhibited legal opinion document is
a premature and one sided and appears to be a tutored one, as
the investigation on the complaint filed by BEML on 7.11.2008
vide FIR No.249/2008 with the Commissioner of Police is yet
to be concluded by the CB-CID.
• Noticing inactions on the above Compliant, BEML has filed a
Writ Petition No.9684/2011 before the Hon'ble High Court of
Andhra Pradesh and directed the Authorities of Andhra Pradesh
to complete the investigation within a period of three
months. The investigation Agency was changed from Central
Crime Station to CB-CID. During this period Shri K Raghava
Reddy obtained anticipatory bail. The Investigation is yet to
be concluded by the CB-CID.
• When the investigation is not complete, it is very
surprising how the Investigating Officer could place all the
facts before the ALA seeking her opinion. It is evident that
the ALA has not been provided with all the facts of the case.
By the opinion furnished by ALA dated 07.09.2010, appears to
be based on the papers furnished by Midwest Granite Pvt.
Ltd.
Besides, the other misdeeds committed by the Nominee
Directors of MGPL are:
• Fabrication of JV Board Resolution dated 16.1.2008 and
filed with Bank.
• Made the payments for purchase of Iron Ore without proper
documents
/contracts.
• Transferred Rs.11 Crores to M/s. Reliance Granite Pvt.
Ltd.,(RGPL) on
01.04.2008 without authority and approval. This transaction
is an interested party transaction, as RGPL is a sister
concern company of MGPL, where the nominee Directors of JV
Company are also Directors in RGPL.
…2.
: 2 :
• Though Shri. Raghava Reddy has agreed to repay the money,
he backed out later.
• The MOIL contract was granted to BEML on nomination basis,
which was first given to MGPL and on formation of JV, the
same was transferred to JV by the Board of JV and not by CMD
of BEML, as opined by ALA.
• On finding misappropriation of funds by Shri. Raghava Reddy
of and on refusing to make good the money transferred during
the Board Meeting of JV on 02nd Sept 2008, BEML
was forced to take legal course of action and filed Company
petition No.55/2008 in September 2008 before the Company Law
Board, Chennai for oppression and mismanagement of JV by
Shri. Raghava Reddy, the proceedings concluded to-day
i.e.,
19.04.2012 and Orders are reserved.
• BEML has also filed a Criminal case on Shri Raghava Reddy
before XIV Addl. Chief Metropolitan Migistrate at Hyderabad
vide SR No. 4912/2009 for the forgery of Board Resolution and
obtaining loan and operating the loan account in State Bank
of Hyderabad and diverting the funds to his sister concerned
company for personal gains.
• The Company petition 55/2008 was filed by BEML and few days
before the interim orders pronounced by CLB, Shri. Raghava
Reddy filed Company petition 2/2009 and not as opined by ALA.
Even the Criminal case with Central Crime Station, Hyderabad
was filed way back in November 2008 and not as opined by
ALA.
• The entire facts and record available with the
Investigating Authorities reveal Shri. Raghava Reddy and his
associates in connivance with Senior Vice President of JV
manipulated, fabricated the records and diverted the funds,
putting the JVs operations to a grinding halt. It is the
nominee Directors of MGPL mainly Shri. Raghava Reddy and the
Senior Vice President and the associates are the persons who
caused the wrongful loss to the JV and are liable for action
under the Sec 403, 406, 408, 418 and 420 under Criminal Law
r/w 120 IPC and not BEML CMD Shri. V RS Natarajan as opined
by ALA CID, Hyderabad.
• The entire opinion rendered by ALA on 07.09.2010 appears to
be not on the entire records presented by BEML to the
Investigating Agency.
All the facts narrated do have necessary documentary proof.
Bangalore A release by BEML LIMITED
19th April 2012
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