Probe panel suggests strict action against General Motors India

Friday 25 October 2013, 11:54 AM by

Things are getting tough for General Motors India in the Chevrolet Tavera controversy. A few days ago, the panel looking into the entire matter had proposed a hefty fine to be imposed on the Indian arm of American auto maker. Following the proposal, the committee, reportedly, sent its analysis and conclusion to ministries for approval. It was said that there was a chance of General Motors India getting away with a fine after being charged with corporate fraud. However, sources claim that now the committee has made another request to the government to take further action in the matter. Reports claim that the panel has asked authorities to take the help of an investigation agency to get further details.

Noticeably, the committee has been really offended by these happenings and are hoping to get General Motors India the strictest of punishments. It has asked the government to scrutinise all records in order to find out General Motors India's real methods of operation, which would help understand the whole situation better. Experts feel that actions and reactions of the committee are completely justified as these sort of things are not expected from a firm that is among the top three in the world. The Detroit-based company has been under the scanner for a long time now and it is being said that penal action might be taken against it, as charges are really serious.

An extensive report has been prepared by the panel, which states all findings regarding this controversy. "All records have not been made available to the committee by GMI to examine the basis on which the external auditor has reached the conclusions included in their report," it stated. Nitin Gokarn, Chief Executive Officer of National Automotive Testing and R&D Infrastructure Project, spoke about this entire issue and the inability of General Motors India to provide correct information. "Despite having been specifically asked to provide all documents and records on the pertaining CoP in question, (the company) has not provided any documents that can be examined to arrive at any specific conclusion. Instead, GMI has given reports of their external auditors that have been created after the incident came to their notice," he was quoted as saying.

The entire report is being looked carefully by government authorities as they have been zeroing on implications. Since this is an extremely serious matter wherein a big name is involved on a national level, all factors need to be taken into consideration before making any conclusion. Apart from the panel, which is adamant on getting General Motors India the severest of punishments, no stance has been taken by higher authorities. However, even the panel involved in this investigation has not been able to draw a direct conclusion due to the lack of verification of truth. Thereby, a little more time is being taken before the jury comes out with a verdict regarding the severity level of punishment.

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