The board accepted the resignation of Probir Sengupta as the chairman, appointed Jagdish Khattar as the joint managing director of MUL and reduced the term of current MD R S S L N Bhaskarudu to 1999 end. Pradeep Kumar, Joint Secretary in the Industry Ministry, has been inducted as a part-time director on the board in place of Anup Mukerji. From the Suzuki side, K Saito has been inducted aspart-time director. Bhaskarudu scotched all rumours about his quitting the company following the reduction of his tenure even as Saito expressed confidence in his competence and said, "I have no intention of leaving this company."

When asked whether the government had a weak case in the International Court of Arbitration, Bhaskarudu refused to comment.

Exhibiting camaraderie which had been missing for a long while, Saito and Bhaskarudu said that the immediate aim of the company would be introduce new models, but did not specify a time-frame. "We will introduce new models in all segments to meet the challenge. Our endeavour will be to ensure that Maruti remains the leader in the auto industry," Bhaskarudu said. He said that the patch-up was not related to the sanctions imposed by Japan in the wake of nuclear tests. "Negotiations have been going on for some time now, and its announcement is a coincidence," he said.

Asked whether he felt let down by the government, he said, "All disputes have been resolvedand there is no need to go into them." Saito said that all necessary technology for Maruti will be discussed and the board will take a decision on it. The next board meeting is scheduled for June 22.

Bhaskarudu announced that Maruti owed Rs 27 crore as royalty payment to Suzuki for the period April 1, 1997, and March 31, 1998, for the Maruti 800, Gypsy and Omni models.