The Bolivian government is set to approach the Interpol in a bid to nab executives of Jindal Steel for allegedly leaving the country ?clandestinely?. Bolivia has accused Arvind Sharma, the CEO of the firm, of going back on investment obligations.
?These people have to answer to the government why they failed to invest and for this we are going to an international body like the Interpol to seek their help in arresting these people with an international warrant,? a Bolivian court said.
The firm?s vice-chairman and head (global hunt), Vikrant Gujral, reportedly left the country in May and some other senior officers, including Sharma and director of legal affairs, Jorge Gallardo, left Bolivia through Puerto Su?rez (Santa Cruz) to Brazil.
The courts in Bolivia are investigating an alleged breach of contract by the Jindals and their failure to invest around $600 million in the first four years since the signing of a contract in 2007 for operation in the Mutun iron deposit. Jindal Steel and Power (JSPL) decided to liquidate the joint venture agreement signed by its subsidiary Jindal Steel Bolivia (JSB) with the Bolivian government for the exploitation and industrialisation of iron ore from El Mut?n recently, arguing that it lacked legal securities to carry on.
FE had earlier reported how all the necessary logistics for the steel complex (road or rail from the site of the Mut?n Puerto Busch) ? which should have been done by the Bolivian government in a given period of time ? were not provided.
?There had been immense pressure on the government to allow foreign investors, and Jindals was perhaps one of the biggest investors in the country. The government failed to provide whatever was contracted between the two parties, hence forcing the Jindals to withdraw,” a few local industrialists told FE.
According to reports, on April 11, the Directorate of Legal Affairs of the ministry of mining said the steel firm of the Mut?n (ESM) hired Delta Consult SMS Bolivia to audit JSB’s investments. Audit reports showed JSB made an investment of $12 million dollars. While the MEA has made several attempts to assist both sides to sit and resolve the issue amicably, and Jindals have urged the Evo Morales administration to ensure the safety of all its employees, the ground is now set for international arbitration.
