Saturday, June 16, 2012

We are legally correct and co-operate with CBI: JSW CEO




 Shivakumar G Malagi

 May 11: Making a strong claim that transactions of the country’s largest steel manufacturer and world’s fastest growing steel company-Sajjan Jindal-led JSW Steel Ltd are “clean and legally correct”; company’s CEO Dr Vinod Nowal welcomed the Supreme Court order directing the Central Bureau of Investigation to probe alleged mining bribery linkage between the company and former Chief Minister B S Yeddyurappa.

“Absolutely, there is no illegal on our side. But, we respect the court order and will co-operate with investigating agency and appear before it to put our point there when it calls us”, Dr Nowal told Deccan Chronicle.

It is alleged that donations made to former chief minister B S Yeddyurappa's family run Prerana Trust and land transactions were an underhand attempt on part of JSW Steel Ltd to obtain undue favours from the then State government.

“In reality, there was no proposal from our side pending before then Chief Minister to obtain undue favours.  It is amply clear that JSW group has, at all times, fully complied with all applicable laws and regulations in their true letter and spirit and has taken all due and reasonable care towards the fulfillment of their statutory, corporate and social responsibilities”, he asserted.

Explaining that Mr Yeddyurappa’s family run Prerana Educational Trust is not the only trust received donations from the Jindal Group companies; Mr Nowal stated JSW Group spends about 2 per cent of its profits annually for corporate social responsibility (CSR) activities.

As part of this CSR, Dr Nowal said, Jindal Group has paid donations to Akshya Patra Foundation, ISKON, Hampi Foundation, Balaji Charitable Trust and many others. “Donation to an educational trust run by the family of former chief minister was made as per norms for construction of an auditorium, which was to be named after the company founder chairman O P Jindal, after satisfying that institutions are professionally managed”, he remarked.

Regarding purchase of one-acre land at Rachenahalli for Rs 20 crore by the JSW-subsidiary South West Mining Pvt Ltd from close family members of Mr Yeddyurappa; Mr Nowal said, land was acquired to set up an office along with guest house.

“Land was purchased following due process of law, assessment of the market value, duly registered after payment of stamp duty and obtained mutation thereof. Any suspicion raised in this matter is frivolous”, he remarked.

Talking about company's procurement of iron ore in the state, he said that "each and every tonne of iron ore bought by the JSW Steel is against valid purchase orders and supplies were accompanied by requisite documents".

Dr Nowal added that the JSW Steel has accounted for entire procurement and its usage and has paid the sale consideration for the same, including taxes and royalties. "If the mining company or transporter or the agency which issues permits had not adhered to applicable law, then JSW Steel cannot be held liable or responsible in any manner. If there are violations and illegal mining, it is for the respective designated agencies/authorities to take appropriate action against the defaulting companies," he said.

Dr Nowal said, indeed, JSW has been an aggrieved party in Karnataka as it has not been allocated any iron ore mine in the state despite the company being the largest investor with an investment of over Rs 40,000 crore in steel, power and industrial gases sectors."JSW Steel, in fact, is an aggrieved party as despite making such huge investments based on assurances, it is still waiting to get mining leases for over 15 years," he said.

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