Mahindra and Mahindra workers union indicted for financial irregularities

An industrial court in the city has indicted the workers' union of automobile major Mahindra and Mahindra for various financial transactions between 2010 and 2012 in violation of labour laws, including payment of money to a trust founded by NCP leader Sachin Ahir. In an order passed on February 1, tribunal member J L Gandhi held that the union had made several financial transactions in violation of the trade union laws and directed it to recover the money paid to certain private bodies "without any justification".

The tribunal directed the union to recover over Rs 50 lakh from various organisations, including Sankalp Pratishthan, founded by Mumbai Nationalist Congress Party (NCP) chief Ahir. The tribunal was hearing a petition filed by an expelled union member, Ravindra Hatim.

The petitioner had challenged his expulsion from the union in 2014, alleging that he was expelled for raising objections to the union's ways of functioning and financial dealings, particularly regarding the donations and honorary payments made to Sankalp Pratishthan and other organisations. While the tribunal refused to hold Hatim's expulsion as illegal and get him reinstated, it noted that the union had been flouting laws.

"Going through the cross-examination of witnesses, it appears that they (the union) have paid certain amounts to Sachin Ahir, Sankalp Pratishthan or towards Mahindra Holidays at Lonavala, but no justification was given and it was revealed that the expenditures were not approved by the general body of the union," the tribunal said.

"The applicant has failed to prove that his expulsion from the union's membership is illegal and void, but succeeded to prove that the managing committee of the opponent union misused the union's funds for purposes other than that stipulated or enumerated in the aims and objects of the union. "Nearly Rs 50 lakh were paid out of the union's funds to Sankalp Pratishthan and other societies, but no explanation was given as to how and under what capacity it was paid," it added.

(With inputs from agencies.)