It’s a completely administration pushed and never board-driven financial institution and if issues go mistaken, the unbiased administrators are blamed. I assumed it greatest to depart an instance for unbiased administrators if issues are usually not going based on the regulation, says Uttam Prakash Agarwal, Former Director, YES Financial institution. Excerpts from an interview with ETNOW.
Please clarify what are your complaints and allegations towards the senior administration at YES Financial institution.
I will be unable to talk a lot since this matter could be very delicate and is earlier than our regulatory authority. They are going to look at and they’ll play their position. However the primary cause I resigned was the failure of company governance; I used to be not happy with the system being adopted for elevating capital.
I wish to actually choose up on these factors one after the other. I’ve a duplicate of your letter. What are you speaking about or what are you implying whenever you say deteriorating requirements of company governance? Might you give us extra particulars?
The entire world and extra notably in India, we have now been discussing for the final so a few years about company governance. So, there isn’t a particular definition however to see that the affairs of the corporate are carried out in a really systemic method and within the curiosity of the stakeholder. I’m a chartered accountant and a former president of the ICAI. I assumed when issues are usually not going correct, I ought to resign. I will be unable to talk a lot as a result of the matter is earlier than regulatory authorities. They are going to look into it and accordingly issues will come up. However this can be a whole failure of company governance which I didn’t like and I resigned at this time morning.
Are you alleging that there have been malpractices of company governance even below the brand new regime that’s below the present MD and CEO Ravneet Gill or the earlier regime below Rana Kapoor?
This can be a present one as a result of we’re speaking about capital elevating now and I’m right here within the new regime solely. I used to be there within the outdated regime hardly for one or two months. However being chairman of the audit committee and numerous different committees, I’ve seen issues weren’t occurring correctly. It’s a completely administration pushed and never board-driven financial institution and if issues go mistaken, the unbiased administrators are blamed. I assumed it greatest to depart an instance for unbiased administrators if issues are usually not going based on the regulation, we should not proceed with the board of administrators.
What based on you shouldn’t be going proper as a result of at this time as effectively the board is assembly and I consider the assembly is at present underway almost about fundraising? Whereas it has been a really delayed course of, what are you alleging particularly over right here?
This has been occurring within the public area for the final four-five months and no cash has come. So, there isn’t a want for me to say one thing.
Is it particularly on the fundraise? Additionally, when have did these points with respect to failure of company governance and failure of compliance risen? Has it been pretty current?
No, no that is already within the letter, the place it’s talked about that I’ve addressed to my board of administrators twice earlier. Yesterday additionally I submitted and at this time morning additionally I submitted and even in yesterday’s assembly additionally, I put a dissent word that issues weren’t going correctly. So at this time morning I made a decision that earlier than something goes mistaken and issues are usually not so as, I ought to resign.
What’s your large concern right here? Is it the standard of cash or the truth that the fundraising has not gone via? Do you consider that the fundraising won’t undergo in any respect and YES Financial institution gained’t have the ability to increase the promised $2 billion?
That I can not touch upon however the two names which the financial institution has given to you up to now three-four months, you of all individuals ought to know what’s their functionality. I can not touch upon it. Secondly, the method is happening for the final 4, 5 months and we want the fund, it’s not coming.
However the remaining authority really rests with the regulator, it’s the RBI who’s going to provide the ultimate approval on the standard of the cash coming in. I don’t suppose it’s in our arms, is it?
That’s the reason I’m not capable of touch upon anyone’s functionality and suits and correct or something. Subsequently I stated that this was the factor which I didn’t like in my private capability and I resigned. That is the position of our regulatory physique and they’re doing a beautiful job.
Your concern is with the people who find themselves placing within the cash. The names that are doing the rounds are Citax in addition to Erwin Singh Braich. Your concern is towards them, is that what you might be saying?
No, no, my concern was that my financial institution wanted the funds however the course of adopted by the administration group was not correct and completely failed on company governance entrance. The compliance group, the authorized group or whoever was part of that, haven’t taken it in a correct means because it ought to have been carried out.
Don’t you suppose the fundraising will undergo?
I can not remark.
Now your first step has been to jot down this letter of resignation. What’s the next move? Are you going to method SEBI or contemplate at any authorized recourse?
Uttam Prakash Agarwal: It’s nothing private. I used to be a director for one yr as a boss of the audit committee. Numerous points had been there, I attempted to placed on report in minutes and all as a result of the RBI representatives are sitting within the financial institution. They are going to come to know. They’ll let you know.
So you might have been having a problem and you’ve got resorted to the step after a while. Did you not take it up internally with the involved individuals?
It is best to undergo my minutes of the varied committees, audit committee, even numerous letters I’ve written to the board. Even in yesterday’s assembly additionally, I put the dissent on report.
Has your resignation been accepted? What’s the response from the board as quickly as you submitted your resignation letter?
There isn’t a want for an approval from the board if you end up an unbiased director and don’t wish to proceed. I’ve resigned. These days it doesn’t require approval.
Are you getting the identical feelers with different unbiased administrators as effectively? Are additionally they of the identical opinion that the fundraising shouldn’t be going via within the right method?
I can not touch upon that. The regulatory persons are taking a look at it.