A government-instituted panel which probed the extent of non-compliance by General Motors in re-fitting pre-approved engines on Tavera models sent for inspection to meet specified emission norms, submitted its report late on Monday evening, holding the company responsible for corporate fraud.
According to the report, top company executives including chief executive officers and managing directors between 2005 and 2012 were in the know of the violations.
“It is a proven case of corporate misdemeanor.
“There will be financial penalty for the original equipment manufacturer, the amount of which is yet to be decided.
“But if the road transport ministry, after reviewing the report, thinks there is individual culpability as well, it can instruct the state governments concerned (Gujarat and Maharashtra) to initiate police investigations against senior leadership for fraud, cheating and personal gains”, said a top government official in know of the development.
GM India may have to face a penalty of up to Rs 11 crore (Rs 110 million) under the Central Motor Vehicle Rules for misrepresenting emissions data to Automotive Research Association of India.
The company has had four leadership changes in the period of recall. Aditya Vij led the company from August 2000 for about five years.
He was replaced by Rajesh Chaba in 2005. Chaba held the mantle from June 2005, prior to Karl Slym assuming charge as managing director and president in October 2007.
Slym headed the company till 2011,
GM RECALLS 1.14 lakh units of Tavera in India
GM India hopes to solve engine issues in Sail, Tavera soon
World's best selling cars; Swift ranks 20
These super luxury cars ready to vroom in India
Stunning cars you would LOVE to drive!