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BEML chief trapped in fraud case; stock dips-news06052012


BEML chairman and MD VRS Natarajan, who is facing a plethora of corruption charges, has also been accused of fraud. Natarajan allegedly committed a fraud by providing different addresses and mentioning his wrong age while registering residential plots in Bangalore and Mysore through the BEML Employees' Cooperative Society ( BECS).


According to disgruntled members of the BECS, Natarajan allegedly pressurised the BECS office-bearers to allot him two plots, measuring 6000 square feet combined, in Bangalore, during January 2005, for a sum of Rs.10 lakh. They now plan to approach the Registrar of Cooperative Societies with their complaint.

In addition, Natarajan had not completed the mandatory 5 years of service in BEML to become eligible for allotment of the plots. Natarajan had joined BEML in 2002, and by 2005, within a span of three years, the BECS allotted the three plots to him.

However, BECS office-bearers defended the allotments to Natarajan, saying there was nothing illegal in the process. In a statement, the BECS said, 'Top officials of BEML in the management and Board have been given sites under the five per cent discretionary quota. Associate members too have been given sites as associate membership is allowed under the law. We have allotted 8,000 sites in Bangalore so far and that includes sites to directors, and chairmen from 1972 onwards.'
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