NFDC MD Nina Lath Gupta issued fresh termination order by I&B Ministry; allegations of lapses withdrawn

The Information and Broadcasting Ministry has been forced to backtrack on its sacking of National Film Development Corporation (NFDC) chief Nina Lath Gupta.

Lath Gupta, who took charge of the NFDC in 2006, was embroiled in a row in February this year, when the I&B ministry terminated her services alleging procedural lapses under her watch. As a Firstpost report dated 1 March 2018 had stated:

The ‘procedural lapses’ that the I&B ministry discovered were regarding the release of advertisement spots by NFDC to certain private channels (specifically Sun TV Network) in excess of the prescribed 5 percent limit stated in the electronic media policy, non refund of commission (15 percent) to the client ministry, along with charging the I&B Ministry an extra Rs 4.29 crore than the actual expenditure. Additionally, the ministry also cited non-adherence to standard operation procedures for the co-production of regional movies along with the NFDC’s failure to utilise the allotted funds for the restoration of movies as an oversight.

Lath Gupta immediately filed a petition against the ministry’s decision in the Delhi High Court, and was reinstated to her post after the HC issued a stay on the order. At the same time, the ministry also approached the Central Bureau of Investigation (CBI) to launch a preliminary inquiry into alleged irregularities and malpractices that occurred under Lath Gupta’s tenure.

Now, the I&B ministry has had to withdraw its reasons for dismissing Lath Gupta. The portions referring to the alleged irregularities and ‘procedural lapses’ in the ’termination of services’ letter that was issued to Lath Gupta have been redacted .

The development followed Lath Gupta’s counsel argument in the HC that the allegations contained in the original termination letter were unfounded.

A fresh termination order has now been issued, which reads: “the President of India has decided to terminate the services of Nina Lath Gupta, MD NFDC, with immediate effect giving three months’ salary in lieu of three months’ notice period”.