Essar group GM DVCS Varma held for 'bribing' maoists

NEW DELHI: The Chattisgarh police on Tuesday arrested a general manager of Essar group on charges of paying protection money to Maoists.

DVCS Varma, the general manager of Essar Steel Limited, was arrested from Kirandul, where the company operates an iron ore beneficiation plant. He was produced before a magistrate who sent him to two days of police custody for further interrogation.

The police have arrested him under sections 121 and 124 (A) of the Indian Penal Code that amount to waging war against the state and sedition.

In a statement, a spokesperson of Essar strongly refuted the allegations, stating, "such baseless allegations are being made to hurt the image and reputation of the group, which is a law abiding corporate."

Dantewada police superintendent Ankit Garg told reporters that he was sending a team to Chitrakonda, in neighbouring Orissa's Malkangiri district, to arrest the company's deputy manager C Srinivas.

A few weeks ago, WikiLeaks had posted a diplomatic cable dated January 11, 2010 which claimed that "a senior representative from Essar, a major industrial company with large mining and steel-related facilities in Chhattisgarh, told Congenoff (Consul General Office) that the company pays the Maoists significant amounts not to harm or interfere with their operations."