BEML chairman P Dwarakanath accused of corruption, stock falls

MUMBAI: Shares of BEML came under pressure after Tehelka reported that newly appointed Chairman P Dwarakanath is “facing allegations of manipulating a contract to supply rail coaches for the Bangalore Metro”.

Dwarakanath and VRS Natarajan, former chairman at BEML, allegedly accepted a bribe of Rs 40 crore to favour Mitsubishi Corporation, Rotem and Melco in the metro coaches deal. According to RTI activist K.S. Periyaswamy, this has caused a loss of Rs 160 crore to BEML.

The stock was at Rs 392.55, down 3.65 percent on the NSE. It touched a high of Rs 407.95 and a low of Rs 388.45 in trade today.

According to Deepak Mohoni, Director at trendwatchindia.com, the stock is likely to slip lower from the current levels.

The markets are expected to be choppy with stock-specific movements this week taking cues from the results season which kicks off Thursday. ET suggests stock ideas for this week and the top 5 performers from last week.