Govt looks at banning Mahindra from boards of companies

Mahindra is on the board of a lot of other companies including HDFC, Bombay Dyeing

PTI | June 11, 2010



Amid strong public reaction to the judgement in the Union Carbide case, the government is understood to be looking at legal position to check if Carbide India's non executive chairman Keshub Mahindra could be barred from taking directorship in any company.

Corporate affairs minister Salman Khurshid is believed to have asked his officials to study relevant portion of the Companies Act and the ministry's Legal Wing is assessing if the clauses relating to disqualification of a director could fit the case.

"Sections 283, 269, 203 and 274 of the Companies Act, 1956, refer to disqualification of a director if convicted by a court of law. We are studying those provisions to study if they deem fit for Keshub Mahindra's disqualification," a government official told PTI.

However, as per legal opinion obtained by the Mahindra Group, its founder chairman Keshub Mahindra could retain his position across companies, as he still has the option of challenging the verdict of two-years' imprisonment handed to him and six others by a Bhopal Court for the tragedy in the city that claimed over 15,000 lives.

"Mahindra will prefer an appeal, against the order of conviction and sentence within the stipulated period of 30 days... There's no necessity for him to vacate office as a director in the various companies he serves in view of in-built protection under sub-section(2) of section 283 of the Act," Mahindra & Mahindra said in a statement.

Mahindra, according to website of Mahindra & Mahindra, is on the board of about 10 companies including HDFC and Bombay Dyeing, besides his own group companies.

In addition to Mahindra, six others were sentenced to two years imprisonment by the court on charges of negligence and culpable homicide not amounting to murder in the Bhopal gas tragedy case. While one accused had passed away during the course of the trial, Carbide's former head Warren Anderson was not tried.

Besides businesses ranging from auto to software, Mahindra, a graduate from Wharton, University of Pennsylvania, USA, is also a member of the prestigious Prime Minister's Council on Trade and Industry.

The Bhopal tragedy, which was caused by leakage of methyl isocyanate gas in the night intervening Dec two and three, 1984, had claimed over 15,000 lives.

Others found guilty are Vijay Gokhle, the then Managing Director of UCIL, Kishore Kamdar, the then Vice President, J N Mukund, the then Works Manager, S P Choudhary, the then Production Manager, K V Shetty, the then Plant Superintendent and S I Quershi, the then Production Assistant.

Comments

 

Other News

UPI completes 10 years of digital payments revolution

The Unified Payments Interface (UPI), launched on August 25, 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), has completed 10 years of transforming digital payments in India. UPI has emerged as the backbone of India’s digi

Here’s an I.D.E.A. for career growth and success

Success in today’s professional organisation is no longer solely determined by academic qualifications, technical expertise or years of experience. While these attributes do matter, organisations increasingly value individuals who demonstrate the right mindset and behavioural qualities. The ability

PM interacts with CEOs, founders of space startups

Prime minister Narendra Modi interacted with CEOs and Founders of 20 Space Startups at Seva Teerth on Friday.   CEOs of leading companies in the space sector working in diverse fields ranging from building rockets and reusable semi-cryogenic launch vehicles, avionics, satelli

From one cow to a dairy business

In 2012, Anita Dash wasn`t dreaming of building a dairy brand. She wasn`t studying business models or planning market expansion. Like countless mothers across India, her focus was on something much simpler: giving her children a better future.   At the time, her most valuable

Ethanol blending: The two sides of a story

India`s crude oil consumption is estimated to be around 88.5% imported from abroad. This one single figure is also responsible for why ethanol has become both an economic strategy and fuel policy at the same time. In an economy like India, which depends so heavily on foreign oil, any increase in internat

Food inflation: Not a macroeconomic statistic but a developmental indicator

India`s retail inflation shows a reassuring picture at first glance. According to the latest data, Consumer Price Index (CPI) inflation edged up to 4.38% in June 2026 from 3.93% in May 2026, but continued to remain within the Reserve Bank of India`s (RBI) target band of 4% (+/- 2%). However, beneath this

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter