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Kapil Sibal, minister of communications and IT is to review the appointments to the posts of the chairman and managing directors (CMD) of both Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL), according to news reports.
These appointments have been under the scanner after the employee unions of both had alleged that former telecom minister A. Raja?s aide R.K. Chandolia had arbitrarily change the eligibility norms to ensure that the Telecommunications Consultants of India Limited (TCIL) chairman and managing director R.K. Upadhyay and Kuldip Singh become the CMDs of BSNL and MTNL respectively.
Besides, Chandolia is also being scrutinised by the Central Bureau of Investigation and the Enforcement Directorate for his alleged role in the 2G spectrum scam. Following Raja?s exit, the telecoms ministry under Sibal has frozen both Upadhyay and Singh?s appointments, subject to a review process.
Also, another factor that led to this decision is that the Delhi High Court in early November had sought the Centre?s stand on alleged irregularities in the appointment of CMDs of BSNL and MTNL. It also sent notices to R.K. Upadhyay and Kuldip Singh after employee unions from the PSU jointly moved the court seeking quashing of the appointment procedure.
Lawyer Prashant Bhushan, who had appeared on behalf of the petitioners, told the court that the arbitrary change in the appointment process was brought to the notice of the government on 1 October 2010, clearly pointing to the involvement of (then) telecom minister A. Raja and R.K. Chandolia behind this move and their ulterior motive to select R.K. Upadhyay for the post of CMD-BSNL.
The selection process was in violation of the recommendations of the Sam Pitroda committee which said the telecom ministry must not interfere in day-to-day working of BSNL and MTNL and these operators must have separate posts of chairman and managing director.
BSNL and MTNL?s employee unions also allege that while over 170 executives had applied for the post of BSNL CMD, Raja and Chandolia ensured that only 12 people were called for an interview when the head of the selection panel, the cabinet secretary, was not present. On 4 October, five shortlisted candidates were taken to the cabinet and R.K. Upadhyay and Kuldip Singh were selected for the posts of BSNL and MTNL respectively, the unions say.
