Law enforcement authorities in Pune took Schaeffler India's managing director and chief executive officer Harsha Kadam into custody on Tuesday. This was due to the executive being allegedly linked to an accident involving one of the company's factories on June 9.
The firm said in a filing that it will continue to cooperate with the authorities and is evaluating all developments with its legal advisors.
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The Talegaon MIDC Police Station, Pimpri Chinchwad Police Commissionerate took Kadam into custody in accordance with the provisions of the Bharatiya Nyaya Sanhita, 2023.
The accident involved the loss of lives of two workers employed by the company's service provider, who died on factory premises due to a sudden COâ‚‚ gas discharge during scheduled cylinder replacement.
"The matter has been under investigation by the authority and the company, its employees and officers as well as the Managing Director have been cooperating with the authority," the filing said.
The firm stated that the police expaneded the scope of the investigation to include Kadam due to him being the "occupier" of the factory premises as per legal norms.
"The scope of the investigation has now been expanded to involve the Managing Director, on the basis that he is the ‘occupier' of the factory premises under applicable law, and the authority has taken the Managing Director into custody for investigation," the filing said.
The senior management of the firm will continue to administrate with regards to day-to-day management, The filing further said that the business operations of the company will continue "in the ordinary course."
Schaeffler India Share Price History
Schaeffler India Ltd's share price saw a 1.25% decrease to settle at Rs 3,623.40, at the end of the day's trade on Monday, compared to a 1.11% downturn of the NSE Nifty 50.
The stock opened at Rs 3,671.90, compared to its previous close of Rs 3,669.20. During today's trading session, Schaeffler share price moved in the range of Rs 3,603.60 to Rs 3,675.50.
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Looking at its last 52-week performance, the stock has touched a low of Rs 3,518.40 and a high of Rs 4,467.70. On the performance front, Schaeffler share price is down 6.55% on a year-on-year basis.
The market capitalisation of Schaeffler is Rs 65,175.50 crore, with a P/E ratio of 59.80.
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