General Motors has said it has not bribed Indian testing labs to get approvals for its Tavera multi-utility vehicles, which were later recalled.
GM stated this to a three-member committee set up by the Road Transport and Highways Ministry in July, following the carmaker’s move to recall 114,000 vehicles. The recall was of vehicles sold between 2005 and 2013 that did not meet the emission norms.
The committee, in its report, had indicted GM on the Tavera recall, while giving a clean chit to the testing agencies. A Ministry official said it will study the committee’s report along with the evidence submitted to decide on its future course of action. The report was submitted only on Monday, the official noted.
The committee’s findings are based on multiple interviews and the three reports submitted by GM. In its audit reports, GM has said there was no evidence of any payout being made to the officials of the testing agencies to secure approvals.
It has submitted three audit reports. Of these, one is GM India’s own investigation, while the other two are by external agencies — J. Sagar Associates and E&Y.
Industry watchers say GM, if found to have erred, may face a penalty of about Rs 11 crore and/or civil or criminal proceedings.
Headed by Nitin Gokarn, CEO of National Automotive Testing and R&D Infrastructure Project, the committee said in its report that the issue involved corporate fraud and could not have happened without the knowledge of top GM management over the eight-year period.
However, the committee has not defined any penalties for the company. P. Balendran, Vice President, GM India, declined to comment on the bribe issue. There had been an emissions problem, and GM had investigated and identified violations of company policy, he said. “We have developed a solution to the emissions problem. We held people accountable and advised the Indian authorities. Beyond that we're not able to comment as we've not heard from the Government or seen the report,” he said.
Transport research body Indian Foundation of Transport Research and Training has alleged a nexus between GM and the testing agencies and said the matter should be handed over to the CBI.
The Highway Ministry has already written to the transport departments of Gujarat and Maharashtra, where the factories are located, to initiate action on the issue.
A Heavy Industry Ministry source added that the respective States will have to take a call on the criminal proceedings.
(With inputs from S. Ronendra Singh and Shishir Sinha.)
mamuni.das@thehindu.co.in