CLB unmanned as member is arrested

Tags: News
Company Law Board, the quasi-judicial body looking into corporate disputes, received a jolt on Tuesday after its senior-most member, R Vasudevan, was arrested by the CBI on charges of bribery. This has left the CLB with only one officiating member – Vimla Yadava based out of Chennai.

CBI has alleged that Vasudevan was caught “red-handed” accepting bribe from one of the parties involved in a dispute being heard by CLB. Vasudevan was apparently caught while ‘accepting cash in return for a favourable judgement’.

After former chairman of CLB, S Balasubramanian, who retired last month, Vasudevan had become the de-facto chairman of the board overseeing sensitive cases like Sesa Goa’a merger with Sesa Industries and Satyam scam.

Balasubramanian told Financial Chronicle that he was shocked and disturbed with this development. “I am shocked with this news,” Balasubramanian said.

Balasubramanian said the government has taken into account serious manpower shortage at CLB and key appointments would be made in the next one-month including a new chairman, justice Deshmukh from the Ranchi High Court. “Within 6 to 8 weeks the government is expected to appoint about 7 members and all the pending cases would be looked into,” he said.

Chairman of CII’s legal affairs committee, Lalit Bhasin, said that immediate steps need to be taken and the government will have to treat this with urgency. “It is a setback in the functioning of CLB and government really has to take quick steps to restore it,” he said.

The spokesperson of corporate affairs ministry said, “ The ministry is taking all steps to deal with the situation. A new chairman will soon be appointed,” he said. Efforts to reach minister Salman Khurshid did not materialise. A text message sent to him also went unanswered.

Along with Vasudevan, the CBI has arrested two more people – Manoj Banthia, the company secretary who offered him the bribe and Delhi-based advocate Ankur Chawla who was representing one of the parties.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • India would have done well not to supress the 'Bofors interview'

    Bofors is one case that refuses to go away two-and-half decades after it grabbed public attention and became a byword for political corruption, claimi

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Varun Dutt

Biogas Potential in India

Biogas is a form of renewable energy produced from organic ...

Zehra Naqvi

Dignity of labour is dignity of life

M Rafi Khan, a retired police IG, used to ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture