The shadow boxing for the control of the 102-year-old Chettinadu Group, the Chennai-based industrial and business conglomerate, came out in the open on Tuesday with sleuths of Central Bureau of Investigation arresting Dr Manu Neethi Cholan, Registrar of Companies, Ministry of Corporate Affairs, for accepting a bribe of Rs 10 lakh from group chairman MAM Ramaswamy. Unconfirmed reports said a CBI team interrogated Ramaswamy, who is also a former Member of Parliament belonging to the Janata Dal (Secular).
According to a release by the head of the branch, anti-corruption bureau of the CBI, the unit had received information from a reliable source that Dr Cholan had demanded an amount of Rs 10 lakhs as illegal gratification from MAM Ramaswami.
“The information further revealed that there is an attempt by rival group within the management to take control over the Chettinadu Group of Companies during the Annual General Body meeting to be held on Wednesday at Chennai. Dr Cholan, demanded the illegal gratification for not approving the decision that is going to be taken during the above meeting. Accordingly, a case was registered on Tuesday and the vehicle in which Dr Cholan was travelling immediately after collection of the money was intercepted and a surprise check was conducted in the car and the bribe amount of Rs 10 lakh accepted by Dr Cholan was seized from his possession. The Honda City Sedan car in which the accused was travelling was also seized,” the CBI release said.
The CBI release further said that checks were held at the office and residences of Dr Cholan and also at the Chettinadu Group Office at Chennai. “Several incriminating documents and a computer hard disc were seized. Further, an amount of Rs 20 lakh was seized from the residence of Dr Cholan. The searches are still continuing. Dr Cholan has been arrested and is being produced before the Special Judge Court for CBI Cases, Chennai,” said the release.
The Chettinadu Group has been in the news recently for all wrong reasons. Ramaswamy, the 82-year-old chairman, had filed complaints in various police stations in Chennai stating that his life was under threat and some people had trespassed into the Chettinadu Palace, his residence. He also charged that the entire palace has been installed with surveillance cameras to monitor his movements and visitors coming to meet him.
Though in the complaint he had named only lalit Kumar Deolal, the security officer of the Chettinadu Palace, his anger was against MAMR Muthiah, his adopted son who is the Group Head of the Chettinadu Group. Sources close to the Chettinadu family said Muthiah had planned to oust Ramaswamy in Wednesday’s annual general meeting which the latter wanted to prevent.
Ramaswamy is well known for his pursuits outside the corporate world. It was during his tenure as president of the Indian Hockey federation the country won the World Cup for the first and last time. He is also a horse race enthusiast with nearly 400 classics to his credit.