Maruti sees Gujarat nod for Mehsana op transfer to Suzuki in 10 days

Maruti sees Gujarat nod for Mehsana op transfer to Suzuki in 10 days

FPJ BureauUpdated: Friday, May 31, 2019, 10:46 PM IST
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New Delhi: With regulatory norms in place, country’s largest carmaker Maruti Suzuki India expects the delayed minority shareholders’ voting on allowing parent Suzuki to own and invest in the Gujarat plant to happen soon. “The minority shareholder voting on the Gujarat plant which was delayed because we first found that the government had moved some amendments in 2013 Companies Act… We thought it would be imprudent of us to vote on under an Act which is under an amendment. So, we postponed that,” Maruti Suzuki India Chairman RC Bhargava said while addressing shareholders at the company’s AGM here.

As the Act was under amendment, other people who had to make changes, including Sebi and the Gujarat government, held back their actions, he said, adding that Sebi has now taken note of change in the law and amended the listing requirements.

Bhargava said the company would soon approach its minority shareholders for a vote to transfer the operations. “So one part of that is done. We expect that the Gujarat government’s action would also be completed possibly in the next one week or ten days. After that we will come to all of you to vote in the support of the project,” Bhargava said. Suzuki Motor plans to take over all operations of the Mehsana plant, and sell vehicles to its Indian arm at a no-profit no-loss basis. The move was earlier objected to by some of its shareholders, who cited fear of profits being routed to Japan.

Joining the chorus of industry leaders disappointed by stalemate on GST, RC Bhargava said political establishment must “re-look at measures” that are clearly in national interest. “I am sure people at large, who are concerned about the economy, will be very disappointed that due to purely political reasons, with no clear economic considerations being apparent, the GST (Goods and Service Tax) has not been approved,” he said addressing shareholders.

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