In a significant development, the Delhi High Court on Thursday approved the removal of Novman Ahmad, a Miniratna Central Public Sector Enterprise (CPSE) MD from service. Ahmad is posted as MD at Hospital Services Consultancy Corporation (HSCC) Limited and was scheduled for superannuation in 2035. But he will now have to relinquish this coveted post nine years ahead of his retirement.
It is worth mentioning here that the HSCC is a Mini Ratna Category-I CPSE and a wholly-owned subsidiary of NBCC (India) Limited.
The Delhi HC’s order comes as a culmination of a high-stakes battle between the ministry and the PSU head over jurisdiction, resulting in the latter losing his job midway.
The legal battle began after the Ministry of Housing & Urban Affairs (MoHUA) seized his administrative powers and delegated them to the Chairperson of NBCC in his capacity as HSCC Chairman on Feb 2 last month.
Ahmad moved the Central Administrative Tribunal (CAT) seeking a stay on this order. But the table turned after the Delhi HC observed that the CAT’s stay was legally untenable and declared the CAT’s order null and void. The HC thus restored the Ministry’s executive authority.
The timing of Ahmad’s exit is crucial, as he was slated to complete his five-year tenure on February 23, 2028. Thus, his term is now cut short by two years.
The ministry took the decision to terminate Ahmad’s services as the MD on the basis of a formal recommendation from the NBCC Board.
Market observers feel that the message is clear: the ministry wants to tighten oversight over its subsidiary operations.
Worse, besides losing his position, Ahmad may now have to face a departmental inquiry.
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