Binoy, if what you say is true, it is shocking! There is usually some wording in the employment contract regarding such involvement in related businesses. This is clearly a major conflict of interest, and a scrupulous company will summarily dismiss guys running with the hares and hunting with the hounds at the same time.
That a country organisation of a multinational like Skoda should be run by a clique in this arbitrary manner is clearly indicative of a total lack of corporate governance at Skoda.
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