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Why Bharat Earth Movers Limited (BEML) is Crashing?

As we are aware that today Bharat Earth Movers Limited (BEML) has closed 5% down at Rs 623 and same is attributable to the allegation of Chief of Army Staff General V K Singh against Lieutenant General Tejinder Singh that the retired officer offered him a bribe of Rs 14 Crores. The Chief alleged that retired officer was acting as a conduit for BEML to make sure that defective Tatra and Vetra vehicles gets supplied to Army.

It is a known fact that BEML is making huge profit by selling Tatra vehicles to Army and as per allegations, said vehicle can be bought at half the price in the international market (Eastern Europe).


Such type of allegations tarnishes image of a company and with the allegation having been made in the public, it is unlikely that BEML will get repeat order for TATRA vehicles from Army and thus fate of BEML is sealed for a short duration till the time the dust settles.

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