HC issues show-cause to Ministry on HCI MD

HC issues show-cause to Ministry on HCI MD
DEV CHATTERJEE

MUMBAI, MAY 5: The Civil Aviation Ministry is in for a major embarrassment over the sacking of former Hotel Corporation of India (HCI) managing director Kamal Sharma with the Delhi High Court issuing a show-cause notice to the Aviation Ministry Secretary Ravindra Gupta asking why contempt of court proceedings should not be taken against him for not obeying the court's earlier order which had maintained status quo on the HCI's MD appointment.

Though Sharma was unceremoniously removed by the then civil aviation minister Ananth Kumar, he was later reinstated by the present aviation minister Sharad Yadav a month before his contract expired. As per an earlier court order, the autonomous body Public Enterprises Selection Board (PSEB) must undertake a performance review so that an extension could be/not be granted.

In Sharma's case, in order to preempt the high court judgment on February 9th, the ministry appointed Dy MD of Air-India J N Gogoi on February 8 without undertaking any performance review of Sharma's five-year tenure. This has been contested by Sharma. The case would be heard again on May 17.

HCI, which has been lined up for privatisation by the present government, has dipped into losses since Sharma's departure. In the fiscal ended March 2000, the Corporation has incurred a loss of over Rs 19 crore. When contacted, Sharma confirmed that a contempt of court notice has been issued to Gupta. ``I do not want to drag this case... but after they appointed someone else without informing me I decided to fight back. I had no other option but to move courts to get justice,'' he said.

Legal circles say the case against the ministry is water-tight as no orders were passed removing or terminating the services of Sharma was passed. Also, no order was passed directing Sharma to give charge to Gogoi. Moreover, on February 21, 2000 another communication about a HCI subsidiary board meeting was sent by the ministry to Sharma signifying his acceptance of the post of Director in HCI.

In fact, Sharma's case is not the only instance where the ministry has goofed up. Earlier, the ministry had sacked the entire board of Indian Airlines and Air India comprising of HDFC chairman Deepak Parekh and former Indian Hotels MD Ajit Kerkar without giving any notice or intimation to the board members.