From Tatra trucks to mining scams now, the wheel of scandal for Bharat Earth Movers Limited boss VRS Natarajan has come full circle. The powerful BEML chairman is facing the heat over alleged mismanagement and diversion of funds in a BEML-Midwest joint venture for mining operations in India and overseas. Tightening the noose around Natarajan, the Chennai bench of the company law board asked the Centre on May 31, 2012 to investigate the charges against the BEML-Midwest joint venture for mismanagement and suppression of documents. As part of the complaint the CBI is investigating in connection with the Tatra Scam, it is alleged that the JV was signed without “floating expression of interest” in newspapers from prospective companies to make a presentation to an empowered committee.
The joint venture between BEML and Hyderabad based private company M/S Midwest was signed in 2007. Soon after, the venture went awry. Both BEML and Midwest Ltd dragged each other to the court. Midwest filed an appeal with the Company Law Board at Chennai in March 2010 against Natarajan for mismanagement, oppression, diversion of joint venture funds and falsification of accounts. The investigation into BEML-Midwest is expected to open a can of worms for BEML and Natarajan. A CAG of 2009-2010, tabled in Parliament on July 9, 2009, had highlighted the alleged scam.