Criminal Case Against BEML CMD, 15 Others

A criminal case has been registered against Bharath Earth Movers Limited (BEML) Chairman and Managing Director P Dwarakanath

Published: 07th December 2013 08:09 AM  |   Last Updated: 07th December 2013 08:10 AM   |  A+A-

A criminal case has been registered against Bharath Earth Movers Limited (BEML) Chairman and Managing Director P Dwarakanath, 14 directors and a company secretary by the Special Courts for Economic Offences for issuing dividends to shareholders.

On Thursday, while hearing an October 31 petition by senior advocate and BEML shareholder K S Periyaswamy questioning the issuance of dividends despite incurring heavy losses, the court directed that a case be registered under Section 447 of the Companies Act. Advocate Periyaswamy said the accused will have to appear before the court on January 2, 2014.

“Section 447 prescribes punishment for fraud up to 10 years and also gives scope to recover three times the amount involved in the fraud,” he said.

Periyaswamy argued that the company is incurring loss of over Rs 80 crore in the financial year 2013-14. Up to November 2013, BEML had been unable to bear the medical reimbursement bills of its employees. In his petition, he explained that under the Companies Act, only those making profits are allowed to declare dividends. BEML is the only company giving dividends even after incurring huge losses. The petitioner had also returned his dividend amount to the company.

Speeding Bike Kills Man on Flyover

In a tragic incident, a 43-year-old auto driver was killed after a speeding motorcycle hit him as he was inspecting his vehicle when it developed a snag on the  Lingarajapuram Flyover on Thursday night. The accident happened in front of the victim’s wife and 10-year-old daughter.

Sham Kumar, a resident of K G Halli, collapsed on the spot and died on the way to hospital. The identity of the motorcyclist is yet to be ascertained, the police said.

Stay up to date on all the latest Bengaluru news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp