In a case questioning the functioning of the AEPC (Apparel Export Promotion Council), the official body of Indian Apparel Exporters, filed 2 years ago, there have been some significant development in recent days. Sources told Apparel Resources that in a letter, the Ministry of Textiles (MoT) has asked the Ministry of Corporate Affairs (MCA) to suspend the Executive Committee (EC) of AEPC.
The case is with the Delhi bench of The National Company Law Tribunal (NCLT) and the next hearing is on 15th November 2018.
Sources also informed that the case is being transferred to another bench, as the issue of ‘recuse’ has been raised. There are total of 28 members in AEPC’s EC and all of them are well-known apparel exporters of the country.
It was claimed in the said petition that the AEPC, in connivance with all its EC members, has from time to time grossly mismanaged the administrative powers of the Council, neglected to address the concerns of small and medium exporters and has been involved in activities beyond the objectives enshrined in the Articles of Association of the AEPC.
The petition has also requested that the Government be directed to appoint a Board of Directors to revive the AEPC Company, so as to cure the continuing acts of oppression and mismanagement.
Reacting to the recent developments, Rakesh Vaid, EC Member from Northern region and MD of Usha Fabs, in a telephonic conversation from New York with Apparel Resources, informed that as the matter is sub-judice, he can’t comment on the developments. However, he added that none of the EC members have done anything wrong. “This (suspension) of EC committee was the decision of the previous secretary and since then, there is a major change in the view now…”
HKL Magu, Chairman, AEPC and EC Members Gautam Nair, Sudhir Sekhri, Lalit Gulati, Narendra Kumar Goenka were also reached but were unavailable for comments.
