Govt Panel Suggests Further Probe Against GM India
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24/10/2013
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Economic Times (New Delhi)
A government-appointed panel investigating into General Motors’ violation of vehicle testing norms in India has suggested that the government approach an investigating agency if it wants a further probe into the records of the company, as the panel itself was unable to verify its “real modus operandi” because the company did not place all the records before it. The panel also recommended “penal action” against the company for its failure to comply with emission norms and for committing corporate fraud.
General Motors India (GMI) is the Indian arm of Detroit-based world's second-largest automaker.
“All records have not been made available to the committee by GMI to examine the basis on which the external auditor has reached the conclusions included in their report,” the panel said in it 500 page report on violation of conformity of production (CoP) norms by GMI for its Tavera model vehicles. The government may approach an investigating agency “in case a further probe into the records of the manufacturer is warranted in the light of the findings and recommendations for the penalty by the committee”.
The panel, headed by Nitin Gokarn, CEO of National Automotive Testing and R&D Infrastructure Project, said “despite having been specifically asked to provide all documents and records on the pertaining CoP in question, (the company) has not provided any documents that can be examined to arrive at any specific conclusion. Instead, GMI has given reports of their external auditors that have been created after the incident came to their notice.”
According to the report, there was no oral or documentary evidence of the concerned GM executives fixing sample selection to pass the emissions compliance test.