Deadlock continues in Smart City company

Nagpur: Deadlock continues in the Smart City special purpose vehicle — Nagpur Smart and Sustainable City Development Corporation Limited (NSSCDCL) — as the board of directors (BoD), in a meeting held on Friday, declined to discuss and ratify decisions taken by municipal commissioner Tukaram Mundhe as chief executive officer (CEO).
Responding to letter by Mundhe, chairman Praveen Pardeshi had convened the meeting.
Mayor Sandip Joshi, also a director in NSSCDCL, told TOI, “The company has sought opinion from attorney general of India (AG) on whether appointment of a nominee-director as CEO can be ratified. The reply is awaited. I had also objected to convening the meeting on short notice. All directors, barring one, opined that discussion and decision should not be taken till the AG’s reply. Next meeting will be held only after receiving the legal opinion.”
NSSCDCL had also sought legal opinion on whether decisions taken by Mundhe as CEO can be approved in post facto manner.
Sources told TOI that during the meeting Pardeshi suggested to discuss the matter and take a decision, but majority of directors were firm on waiting for legal opinion. Pardeshi reportedly asked the officials of NSSCDCL to seek legal opinion from joint secretary of state’s law and judiciary department if the AG’s reply is delayed.
Mundhe had claimed that he assumed charge as CEO in February on the orders of Pardeshi and took some decisions.
Joshi had lodged complaints alleging that Mundhe was not a valid CEO. Employees, who were terminated by Mundhe, had also filed a petition in the high court challenging Mundhe’s authority.
In the BoD meet on July 10, Pardeshi clarified that he had asked Mundhe to oversee the works as civic chief and not CEO. After Pardeshi’s clarification, it was decided to seek legal opinion.
Interestingly, after the July 10 meeting, Pardeshi in a statement to TOI had said, “All decisions taken by Mundhe as CEO, excluding termination of employees, were unanimously approved by the board as these were in good faith and had no vested interest.”