Managing Director and Chief Executive Officer Harsha Gopal Kadam

Schaeffler India, a leading Tier 1 automotive component supplier to companies including Maruti Suzuki, Tata Motors, Mahindra & Mahindra and Hyundai Motor India, has seen its Managing Director and Chief Executive Officer Harsha Gopal Kadam taken into police custody as part of an investigation into the deaths of two contract workers in a June 9 accident at its Talegaon factory near Pune, according to a regulatory filing accessed by BusinessLine.

Police took Kadam into custody at around 6.40 p.m. on October 19 after widening their investigation to include him in his capacity as the factory’s designated occupier, a position carrying statutory responsibility for workplace safety under Indian law.

His custody follows earlier instances of police action against chief executives after fatal industrial accidents. In 2025, Sigachi Industries CEO and Managing Director Amit Raj Sinha was reportedly arrested following a factory explosion in Telangana that killed dozens of workers. In 2020, police arrested LG Polymers CEO Sunkey Jeong and other senior officials after a styrene gas leak at its Visakhapatnam plant killed 12 people.

WHY THE LAW HOLDS CEOs ACCOUNTABLE

Under Section 2(n) of the Factories Act, 1948, a company must designate one of its directors as the factory’s occupier, the person deemed to have ultimate control over its affairs.

Section 7A requires the occupier to ensure, so far as reasonably practicable, workers’ health, safety and welfare, including safe operating systems, maintenance, training and supervision.

These obligations extend to safety arrangements involving outside contractors. However, designation as occupier does not automatically establish criminal negligence. Investigators must determine whether evidence supports liability under applicable criminal law.

WHAT HAPPENED AT TALEGAON

The June 9 accident occurred when carbon dioxide gas was suddenly discharged during scheduled cylinder replacement, killing two workers employed by an external service provider.

“The scope of the investigation has now been expanded to involve the Managing Director, on the basis that he is the ‘occupier’ of the factory premises under applicable law,” Schaeffler said.

The company has not disclosed the specific Bharatiya Nyaya Sanhita provisions invoked against Kadam.

COMPANY SAYS OPERATIONS UNAFFECTED

The company manufactures engine, transmission and chassis components for passenger vehicles, commercial vehicles, two-wheelers and tractors. Its LuK, INA and FAG brands cover clutch systems, engine components and precision bearings, while its portfolio also includes electric and hybrid vehicle technologies.

Schaeffler said its officers and managing director had cooperated with investigators and would continue to do so. Senior management remains in charge of day-to-day operations, which continue normally.

Published on October 20, 2026