PUNE — Schaeffler India Managing Director and CEO Harsha Kadam was taken into police custody Tuesday as part of an investigation into a June factory accident that killed two workers, the company disclosed in a regulatory filing.
Kadam was detained by officers from the Talegaon MIDC Police Station under the Pimpri Chinchwad Police Commissionerate in connection with the June 9 incident at one of the company’s manufacturing facilities.
The accident occurred when carbon dioxide gas was suddenly released during a scheduled cylinder replacement, killing two workers employed by an outside service provider.
According to Schaeffler India, authorities are investigating the incident under provisions of the Bharatiya Nyaya Sanhita, India’s criminal code enacted in 2023.
“The company has been informed that Harsha Gopal Kadam, CEO & Managing Director of the Company, has been taken into custody for investigation by the Talegaon MIDC Police Station,” Schaeffler India said in its regulatory filing.
The company said it and its employees, executives and managing director have cooperated with investigators since the accident.
Authorities recently expanded the investigation to include Kadam because he is designated as the factory’s “occupier” under applicable law, a position that carries statutory responsibilities for workplace operations and safety.
“The scope of the investigation has now been expanded to involve the Managing Director, on the basis that he is the ‘occupier’ of the factory premises under applicable law, and the authority has taken the Managing Director into custody for investigation,” the company stated.
Schaeffler India said it is consulting legal advisers and will continue cooperating with law enforcement authorities as the investigation proceeds.
The company also sought to reassure investors that the development would not disrupt its business. Senior management will continue overseeing daily operations, with activities proceeding as usual, according to the filing.
Meanwhile, Schaeffler India shares closed Monday at 3,623.40 rupees, a decline of 1.25% from the previous closing price of 3,669.20 rupees. The broader Nifty index fell 1.11% during the same session.
The stock opened at 3,671.90 rupees and traded between 3,603.60 and 3,675.50 rupees during Monday’s session.
The investigation remains ongoing, and the company has not disclosed further details about potential legal proceedings against Kadam. (Source: IANS)
