Smart City board says Mundhe not CEO but clears his decisions

Nagpur: NSSCDCL chairman Praveen Pardeshi in the meeting of board of directors (BoD) said he had not asked municipal commissioner Tukaram Mundhe to assume charge of CEO, but only told him to take care of all Smart City works in the capacity of municipal commissioner. He also said all decisions, excluding sacking of employees by Mundhe, in the capacity of CEO were approved unanimously by the BoD as they were taken in good faith, and he had no vested interests.
Pardeshi, IAS officer with additional chief secretary rank, told TOI, “Municipal commissioner has to supervise work of CEO and deputy CEO.As per NSSCDCL policy, additional charge of CEO has been given to deputy CEO Mahesh Moroney, and Mundhe will supervise him.”
When issue of CEO came up, Mundhe read out the state government order saying IAS officer should be given first preference before recruitment.
Among remaining 13 directors, only Shiv Sena group leader Mangala Gawre supported Mundhe as CEO. CP Bhushan Kumar Upadhyay, collector Ravindra Thakre, NIT chairman Sheetal Teli-Ugale and leader of opposition from Congress Tanaji Wanve favoured following the norms of Smart City project’s special purpose vehicle — Nagpur Smart and Sustainable City Development Corporation Limited (NSSCDCL).
Six directors — mayor Sandip Joshi, ruling party leader Sandip Jadhav, standing committee chairman Vijay Zalke, BSP group leader Vaishali Narnawre and two independent directors said Moroney should be made CEO. Considering majority in Moroney’s favour, he was given additional charge of CEO.
Pardeshi said NSSCDCL will start recruitment process for appointment of CEO. “BoD also decided to start recruitment process for chief finance officer.” Mona Thakur is currently holding additional charge of CFO.
Pardeshi added, “There was controversy on some subjects but BoD took all decisions unanimously. I also appealed to all directors to avoid litigations and discuss and take decisions.”
On employees terminated by Mundhe, Pardeshi said, “Matter is before court so discussion in BoD was not possible.”
Mundhe told TOI, “I assumed charge as per instructions of chairman. I don’t know why he denied it today. I had taken all decisions after consulting him and very clearly mentioned it in the notes since February 19. All knew I was working as CEO and none raised objection in last five months. Chairman or company secretary have powers to hold BoD meeting, so they should have held it and decided in February itself. But BoD approved all my decisions as CEO as they were in the interest of company and city.”
Mundhe was denied a chance to raise the issue of validity of nominee directors of Joshi and Jadhav. Pardeshi said, “I did not allow as those issues were of no use now. We have to move, and take the project forward,” he said.
In a press conference, Joshi said, “We claimed Mundhe had forcefully taken charge as CEO, and BoD meeting proved it. I thank BoD for endorsing my claims and giving additional charge of CEO to Moroney. Auditor of NSSCDCL has also given adverse remarks on Mundhe. Such lies were not expected from Mundhe who is known for working within rule books.”
Joshi also said, “Four of us have registered objection on decision taken to approve payments disbursed by Mundhe as CEO. BoD decided to take legal opinion to conduct inquiry on Mundhe and his decisions.”
However, Pardeshi rejected any decision to take legal opinion or inquiry. “No disputes remain among directors,” he said.
Asked about fate of garbage bio mining tender, Pardeshi said the matter was not on BoD’s agenda.
TOI had on June 26 reported Mundhe was not a valid CEO, and mayor and Jadhav were not valid directors. Later, Joshi had filed a petition in Nagpur bench of Bombay high court and received stay on disqualification of his director identification number (DIN) by Ministry of Corporate Affairs (MCA). Jadhav too had got a DIN issued.
IAN
* Tukaram Mundhe assumed charge as municipal commissioner in January, assumed charge as CEO
* Mundhe cancelled tender for five garbage stations and issued tender for bio mining of garbage
* He disbursed payments to contractors, cleared salaries, stalled payments to two agencies, sacked some employees
* Mayor Sandip Joshi and ruling party leader Sandip Jadhav complained to police alleging Mundhe was not valid CEO
* Police forwarded complaint to NSSCDCL, Joshi and Jadhav filed petition in district court
* Sacked employees filed petition in HC
* Union minister Nitin Gadkari lodged a complaint with central government
* BoD meeting clarified Mundhe was not asked to assume charge of CEO but told to take care of works as civic chief
* BoD approved all decisions, excluding sacking of staff, taken by Mundhe citing good faith and no vested interest
* Deputy CEO Mahesh Moroney given additional charge as CEO and asked to work under supervision of Mundhe