Polaris CMD detained in Indonesia

BANGALORE: It is reported that Jain had traveled to Jakarta with his team of senior executives in charge of a software development project for Jakarta based Bank Artha Graha to resolve some commercial issues. Polaris Software had signed agreements with Bank Artha Graha in June 2002 and August 2002 covering Central Processing, Disaster Recovery and Branch Server related work. The contract was supposed to be completed by July 2003.

Bank Artha Graha served notice of termination on Polaris Software on 27^th November 2002. Polaris responded on 3^rd December 2002 stating that the grounds for termination were incorrect and offered to resolve the issue through discussion.

However, on their arrival in the office of Bank Artha Graha on 13^th December 2002, they were detained and were not allowed to leave the premises. In the evening, Bank Artha Graha filed a report with the Police Station at Jalan Truno Joyo Tiga 3 of Jakarta and on that basis the Indonesian Police detained them.

Their detention continues and the company is making vigorous attempts to secure their release through the Ministry of External Affairs, Ministry of Information Technology, NASSCOM and Indian Embassy in Jakarta.

The Board of Directors of Polaris met today in Delhi in an extraordinary meeting to review the situation and appointed Govind Singhal, Executive Director as acting CEO of Polaris. "We are deeply shocked and saddened at the turn of events" said Mr. Singhal. "There is a specific provision in the agreement for arbitration in Singapore to settle any dispute and it is disturbing that our Chairman and a senior executive have been subjected to humiliating treatment for a commercial dispute. We expect their early return to India and in the meanwhile, the management and staff of Polaris is conducting its business in a normal fashion."