Hyderabad: Taking a defiant tone, M. Srinivas Rao, CEO, T-Hub, in response to a DC report published on Thursday, with the headline, ‘BRS appointees cling to posts’, said, “T-Hub was established legally as a Section 8 not-for-profit company, with a member given to the state government on the Board. As the CEO, I report to the board and not to the government.”
As per the Companies Act, 2013, Section 8 companies are incorporated as not-for-profit but act on a financial efficiency model, and aim to garner profits, which are then reinvested and cannot be taken by the promoters. Section 8 companies, as per Central government guidelines, enjoy certain exemptions under Section 462 of Companies.
As per Srinivas, the T-Hub has heads of organisations like the ISB and Nalsar as members on the board. “I will neither resign nor can the government fire me because I am not its employee. I only report to the board, on which the government has the right to have a member.”
Heads of several other organisations have also refused to quit, despite being appointed by the BRS government, including the We-Hub, T-Sat, and Hyderabad Metro Rail Ltd., among others. Many of such posts are being occupied by individuals who have retired but have been given one or more extension of service by the previous BRS government, which is well within the quantum of political appointments.
T-Hub, We-Hub, T-Sat and HMRL did not respond officially yet.
