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The Government on Saturday suspended Mr A.K. Srivastava, Chairman and Managing Director of the National Aluminium Company Ltd (Nalco), following his arrest by the Central Bureau of Investigation (CBI) on Friday in an alleged bribery case.
In a statement on Saturday, the Ministry of Mines said, “Mr Srivastava has been put under suspension with immediate effect following investigation/inquiry in a case of criminal offence”.
The Government of India owns 87.15 per cent stake in Nalco.
Sources in the Mines Ministry said the senior-most Nalco official, Mr P.L. Bagra, Director (Finance), has been given the additional charge of chairman-cum-managing director, till further orders.
Nalco has convened an extraordinary general meeting on March 5 at Bhubaneshwar to seek shareholders' approval for a stock split and issue of bonus shares.
The board had decided on January 31, 2011, to split face value of the existing shares from Rs 10 each paid-up per equity share into two equity shares of Rs 5 each paid-up. It had also decided the issue of bonus shares in the proportion of one equity share of Rs 5 each for every one equity share of Rs 5 each of the company, post stock-split.
The company is also seeking shareholders' approval to more than double its authorised capital from Rs 1,300 crore to Rs 3,000 crore.
Nalco shares closed about 4 per cent higher on the BSE on Friday at Rs 440.
The company reported a net profit of Rs 256 crore on revenue of Rs 1,443 crore for the quarter-ended December 2010.
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