No infraction in the decision of extending the tenure of CMD, Educational Consultants India Limited

Supreme Court: In the appeal against the order of the Delhi High Court where extension of tenure was granted to the Chairman-cum-Managing Director(CMD), Educational Consultants India Limited, for a period of 5 years amidst the allegations of harassment, irregularities in promotions/appointments and various complaints by the Whistle Blower, the 3-judge bench of T.S. Thakur, CJI, R. Banumathi and U.U. Lalit, JJ dismissed the appeal as it found nothing wrong in the decision making process and no infraction in securing and acting in terms of the comments of CVC.

In the present case it was alleged that the tenure was extended in the absence of mandatory Vigilance Clearance. However, the Court took note of the fact that the Education Secretary, Department of Higher Education, Ministry of HRD, Government of India directed two senior most officers of the Department to examine the allegations and it was concluded that there was no merit in any of the allegations and concluded that no case was made out for denial of re-appointment of the CMD. Thereafter, Joint Secretary/CVO of the Government of India, Ministry of HRD, Department of Higher Education vide letter dated 16.03.2011 forwarded report of the Committee to CVC and that the CVC should consider the closure of the matter.

The Court, considering the facts of the case, said that it is clear that at the initial stage when the response from CVC was awaited, an extension was granted only for three months and when the letter from CVC was received, the matter was not only clarified immediately but the allegations in the complaint referred to in the letter of CVC were also looked into by the Committee. Noting the fact that every development was communicated to CVC, the Court agreed with the decision of the High Court. [Educ. Cons. (I) Ltd. SC/ST Empl. Wel. Asso. v. Union of India, 2016 SCC OnLine SC 753, decided on 02.08.2016]

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