Professor NK Singh, one of the five appointed directors by the BIFR on the board of the Hindustan Antibiotics, has resigned to protest the undue protection being given to the company’s finance director by the Chemicals and Fertiliser Ministry. The move is likely to have far reaching consequences in the ongoing privatization tussle in the company.
An economist associated with JNU, Singh had been appointed on the HAL board for reconstruction. He submitted his resignation to the company chairman recently. Singh apparently decided to resign after continuous complaints about the dubious functioning of HAL finance director SP Roy, was not given any cognizance by the concerned authorities.
He had written to the Union Chemicals and Fertiliser Ministry, pointing out how Roy’s acts of omission and commission were hurting the interests of the beleaguered Pimpri based public sector firm.
Sources alleged that Roy had started conniving with at least two private pharma companies that are the bidders for the HAL. It is learnt that Roy’s name was proposed by the Kalyan based KP Pharma as the finance director in case it won the bid for acquiring HAL back in 2002.
Arun Bhorade, general secretary, HAL, mazdoor sangh said it was surprising to see Roy’s name being officially proposed by KP Pharma even when he was on the board of HAL itself. ``For the last two years we have continuously written to the government about Roy’s dubious functioning, but there was no response from the government. He was also absent during the 23rd June meeting of the board of directors and failed to submit the balance sheet for 2001-2002 fiscal.’’ Bhorade added that he deliberately did not submit the balance sheet to create hurdles in financial reconstruction of the company. Bhorade also confirmed that that the Public Enterprise Selection Board that appoints directors for the PSUs has also written to the government against Roy’s doubtful functioning but the government paid no attention. He reiterated that the resignation of Singh is a loss to the company and concerned authorities should investigate the matter.
Sources said Roy has been pushing the bid of another company Sun Pharma for acquisition of stakes in the company. This despite the government making clear to the BIFR its intention of not winding up HAL.