Financial Daily from THE HINDU group of publications
Tuesday, Dec 17, 2002
Financial Daily from THE HINDU group of publications Tuesday, Dec 17, 2002 |
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Software Corporate - Corporate Disputes Info-Tech - Software Polaris chief held in Jakarta — Business trip goes sour Our Bureau
CHENNAI, Dec. 16 THE city-based Polaris Software Laboratories Ltd today said that its Chairman and Managing Director and CEO, Mr Arun Jain, had been held against his will by the police in Jakarta, Indonesia. In a statement, the company said that Mr Jain had travelled to Jakarta with his team of senior executives in charge of a software development project for Bank Artha Graha to resolve some commercial issues, when he was detained. Polaris had signed agreements with Bank Artha Graha in June 2002 and August 2002 covering central processing, disaster recovery and branch server related works. The contract was supposed to be completed by July 2003. The statement said that Bank Artha Graha had served notice of termination on Polaris on November 27 to which Polaris had responded on December 3 stating that the grounds for termination were incorrect and offered to resolve the issue through discussion. However, on their arrival at the office of Bank Artha Graha on December 13, Mr Jain and his team were detained against their wishes and were not allowed to leave the premises. In the evening, Bank Artha Graha filed a report with the police and on that basis the Indonesian police detained them, the statement said. It said that their detention continued and the company was making attempts to secure their release through the External Affairs Ministry and the Information Technology Ministry, as also the National Association of Software and Services Companies (Nasscom) and the Indian embassy in Jakarta. The statement said that the board of directors of Polaris, at an extraordinary meeting in Delhi today, appointed Mr Govind Singhal, Executive Director, as acting CEO of Polaris. It quoted Mr Singhal as saying that there was a "specific provision in the agreement for arbitration in Singapore to settle any dispute and it is disturbing that our chairman and a senior executive have been subjected to humiliating treatment for a commercial dispute. We expect their early return to India and in the meanwhile, the management and staff of Polaris are conducting its business in a normal fashion".
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