NEW DELHI, Oct 5: Industry Minister Murasoli Maran's refusal of attend the Cabinet meeting on Wednesday last in protest against the abrupt transfer of Probir Sengupta, Chairman of the Maruti Udyog Limited, as Secretary in the Department of Petroleum, made the Prime Minister reverse his decision.

Sengupta will now continue as Secretary in the Heavy Industries Department and Chairman of the Maruti Udyog Limited. Vijay Kelkar who was transferred to from Petroleum to the Planning Commission, will stay put until further orders.

Sources say that Maran was so upset with the development that he took up the issue of Sengupta's transfer with the Prime Minister and made it clear that he would not be in a position to remain in the Cabinet. He felt that the transfer will demoralise all those who made the Suzuki Motor Company (SMC) to see reason.

So agitated was Maran that he refused to attend the Cabinet's meeting although he was in the Capital. However, Gujral reported is to have assured him that Sengupta need not be relieved. Before his departure to Chennai, Maran told some of the United Front's Steering Committee members yesterday at its meeting that the issue had been sorted out after his talks with the PM.

Maran's Additional Private Secretary confirmed that he did not attend the Cabinet meeting on Wednesday as he was preoccupied elsewhere. Maran himself was not available for comments. He also confirmed that Sengupta has not handed over the charge as yet.

Two members of the Steering Committee confirmed that Maran informed them that the transfer of Probir Sengupta has been stayed after he took up the issue with the PM.

Maran had a running battle with the SMC on the appointment of RSSLN Bhaskarudu as Managing Director of the MUL and Sengupta as its Chairman.

However, the SMC called for a truce and Maran responded positively. But Sengupta's sudden transfer upset him and he felt it would compromise his position as Minister. Maran also wanted that the issue of allowing Suzuki acquiring 10 per cent extra shares in the Joint Venture company during the Narasimha Rao regime in 1992 at a throw away price of Rs. 23 instead of the then expected price of Rs. 200 per share be investigated.

He said that the profits of the Joint Venture company were on the rise ever since it came into existence in 1983. Even if the government wanted to reduce its stake in MUL by 10 per cent and off-loaded shares, it should not have given the shares at a throw-away price to SMC. The disinvestment should have been made to Indian Financial Institutions or the public which have got more money.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.