Bharat Earth Movers Ltd. (BEML) declines over 6% and hits monthly high of Rs615.55, after the company reports that the supplied sub-standard equipment at inflated price to the Army.
BEML is a government-owned company that supplies the Army with trucks and other equipment.
Army Chief General VK Singh had said in an interview that money was offered to him to clear the purchase of 600 'sub-standard' Tatra trucks. Tatra, a Czech manufacturer, supplies trucks to the Army through BEML. These trucks are manufactured in the Czech Republic.
A 4x4 Tatra truck costs Rs40 to Rs50 lakhs in Europe. It was sold by BEML to the Army at nearly double that price.
Ashok Leyland and Tata Motors supply similar trucks for Rs16-18 lakhs.
....more info
BEML is a government-owned company that supplies the Army with trucks and other equipment.
Army Chief General VK Singh had said in an interview that money was offered to him to clear the purchase of 600 'sub-standard' Tatra trucks. Tatra, a Czech manufacturer, supplies trucks to the Army through BEML. These trucks are manufactured in the Czech Republic.
A 4x4 Tatra truck costs Rs40 to Rs50 lakhs in Europe. It was sold by BEML to the Army at nearly double that price.
Ashok Leyland and Tata Motors supply similar trucks for Rs16-18 lakhs.
....more info