GAIL closes in on 2 ex-IGL managing directors

Vol 19, PW 25 (25 Aug 16) People & Policy
     

New details have emerged on the allegations of financial impropriety levelled against GAIL director human resources M.

Ravindran and executive director (corporate planning) Narendra Kumar. This month (August) GAIL's vigilance department officially served show cause notices to Ravindran and Kumar over complaints received relating to their tenures as past managing directors of gas retailer Indraprastha Gas."Both have been given 15 days from the date of notice to respond," we hear.

"They will have to prove their innocence." Most cases against Ravindran are related to "misappropriation of funds" and "flouting" standard business procedures. "Ravindran ran IGL as his own company," claims a source.

During Ravindran's tenure, he alleges, auditors discovered that a sum of more than Rs5cr ($833,000) was paid out to vendors with paper invoices ranging from Rs10 lakh ($16,600) to Rs50 lakh ($83,000). "IGL uses SAP (operational software)," we hear.

"Issuing paper invoices isn't allowed. Each invoice must be approved by at least three officers before payment.

But in this case rules were flouted as the payment was approved by the MD himself." Ravindran is accused of making payments of Rs1.5cr ($250,000) in a single year to buy flower bouquets and Rs50 lakh ($83,000) for snacks and sweets. "I don't think even the oil ministry must be spending that kind of money on snacks," comments a source.