The Hindu : National : Service extension to MMTC chief challenged

Online edition of India's National Newspaper
Wednesday, Nov 17, 2004

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National

Service extension to MMTC chief challenged

By Our Legal Correspondent

NEW DELHI, NOV. 16 . The Supreme Court today issued notice to the Centre and the Central Vigilance Commission on a petition challenging the three-year extension granted to the Chairman-cum-Managing Director of the Minerals and Metals Trading Corporation (MMTC), S.D. Kapoor.

A Bench of Justice N. Santosh Hegde and Justice S.B. Sinha also issued notice to Mr. Kapoor, who was given extension of tenure by the previous National Democratic Alliance Government despite serious financial irregularities alleged to have been committed during his tenure.

In its petition, the Centre for Public Interest Litigation (CPIL) through its counsel Prashant Bhushan alleged that Mr. Kapoor was first appointed CMD of the MMTC for five years in August 1998. During that period the CVC had recommended major penalty proceedings against him and referred to the Central Bureau of Investigation (CBI) a case for expeditious probe.

Despite this, the petitioner said the Government neither initiated proceedings against him nor referred the case to the CBI as advised by the CVC. Counsel argued that the Ministry of Commerce in 2003 recommended the extension of Mr. Kapoor as CMD of the MMTC for three years. After the recommendation for extension, when the mandatory clearance from the CVC was sought it was denied. However, Mr. Kapoor was given a three-year extension in January this year despite the reservations expressed by the CVC, the petitioner said.

The petitioner contended that the extension granted to Mr. Kapoor was illegal, arbitrary and actuated by mala fide. It sought quashing of the extension given to Mr. Kapoor.

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