The Hindu Business Line : Hindustan Fluorocarbons officials pulled up by BIFR

OFFICIALS of Hindustan Fluorocarbons Ltd (HFCL) promoted by Hindustan Organic Chemicals Ltd (HOCL) came in for the stick from the Board for Industrial and Financial Reconstruction (BIFR). The BIFR bench has taken a serious note of the conduct of the company's officials for non-compliance of its directions and has called for an explanation from the Managing Director of the company.

"We now direct the Managing Director of the company to show-cause as to why directions given by the Board were not complied with when Guarniflon Ltd and IDBI officials visited the company's factory on May 27, 2003, thereby rendering himself liable to action under Section 33(1) of Sick Industrial Companies (Special Provisions) Act (SICA)," the order said.

Section 33(1) of SICA provides that "whoever violates the provisions of the Act or any scheme, or any order of the Board or the Appellate Authority and whoever makes a false statement or gives false evidence to the Board or the Appellate Authority, shall be punishable with simple imprisonment for a term which may extend to three years or shall also be liable to fine."

The bench, in its recent order, also directed the Managing Director to finalise the dates of the visit in consultation with representatives of Guarniflon and ensure that the directions of the Board are complied with. It also directed the company to submit a compliance report.

BIFR vide its order dated March 21, 2003 had circulated a draft rehabilitation scheme for obtaining consents of all concerned parties.

Guarniflon, which had submitted its bid to take over assets of the company, requested BIFR in April 2003 that their technical team would like to visit the manufacturing facility at Rudraram, Andhra Pradesh.

Having considered the request of Guarniflon, BIFR, allowed inspection of fixed assets by the company.

The Guarniflon team along with two officials of IDBI after informing the management of HOCL and HFCL about the dates of their visit went to inspect the assets.

However, they were stopped by the security officials and refused entry, the bench noted.

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