Directors sitting on funds meant for textile park members: ex-MD | punjab | Hindustan Times
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Directors sitting on funds meant for textile park members: ex-MD

punjab Updated: Sep 30, 2014 11:16 IST
Arjun Sharma

A former managing director (MD) of Ludhiana Integrated Textile Park, set for promotion of city industry, has accused the park's 10 directors of flouting the norms of disbursement of shares.

The ministry of textiles has provided a subsidy of `36 crore for the Rs 100-crore project, with Rs 4 crore worth of subsidy remaining, while the remaining funds are to be pitched in by industrialists.

However, initiated in 2005, the project is still far from completion. There are a total of 86 plots of three different categories that have been allotted to members of the integrated textile park.

Now, Vinod Thapar, who was the MD of the project from 2005 to 10, has claimed that the directors of the textile park have flouted the norms of disbursement of shares, as set up by ministry of textiles.

"Since day one, I was of the view that shares should be allotted to the plot holders in proportion to the area allotted to them as per guidelines of the ministry. As the other directors were not interested to allot the shares, I had to resign from the post of MD in 2010."

He alleged, "At present more than 85% equity shares of the park are owned by 10 directors, which is a clear violation of ministry guidelines. Even at textile parks in other parts of the country, shares have been allotted to the plot holders in proportion to area allotted to them".

This had led to the project hanging in balance for almost nine years, he added.

On the other hand, Knitwear Club president and one of the 10 directors, Darshan Dawar has termed the allegations a mere gimmick by Thapar, who only wants to create a sense of fear among the members of the park and destroy the scheme that could benefit the industry.

Dawar questioned that in case Thapar was so keen to allot the shares to the members, why didn't he allot his own shares when he was the MD of the textile park?

"Thapar himself took a bridge loan (short term loan) of `30 crore from a bank that was a wrong decision on his part. After some months bank started demanding the loan money, and we are still paying off the loan," Dawar said.

He also said roads and other facilities in the park had already been completed and two factories had also started operations. "The project would be a success but some people due to their vested interests are trying to sabotage it," Dawar added.

Another director, requesting anonymity, said, “When Vinod Thapar was the MD of the park, he published a tender of Rs 22 crore for infrastructural development in a local newspaper, instead of a national newspaper, as mandatory. The tender was allotted to a local contractor. Later when we pressed for re-tendering, the same tender was given for `14 crore to the contractor."