3 Independent Directors at PTC Financial Services resigns citing corporate governance breaches

20 Jan 2022 , 11:43 AM

Three independent directors of PTC Financial Services Ltd., NBFC arm of PTC India Ltd. resigned citing corporate governance lapses on several occasions on part of the company’s management. The three Independent Directors namely, Thomas Mathew T, Kamlesh Shivji Viakmsey, and Santosh B Nayar resigned.

The resigning Directors have raised serious concerns about corporate governance breach on several occasions by the management of PFS India which is led by the Managing Director and CEO Pawan Singh.

In their resignations, all three Directors have highlighted that Singh acted in violations of several of his powers. The Directors have also raised questions on the lack of action on part of the major stakeholder PTC India on the said issues, which is expected to have a debt close to Rs 11,000 crore.

In conversation with the press, PTC India’s Chairman and MD Rajib Kumar Mishra stated that the company’s management is committed to corporate governance and no breach may have occurred. The matter is under investigation for now, and necessary will be taken to rectify it. The company will take care of stakeholders and is of prime concern for the company.

The Independent Directors also highlighted a unilateral change in conditions of highway loan worth Rs 150 crore by the company.

The issue came to the board’s notice only as a coincidence but it further raises doubt on many more such instances of similar nature that may exist in the company, and the board might be unaware of such non-disclosures by the company.

The Directors alleged that Singh put on hold the company’s board decision to appoint Ratnesh as the company’s Director Finance and Chief Executive Officer.

The independent directors also flagged disbursements of Rs 125 crore loan to NSL Nagapatnam Power and Infratech. They further commented that previous PTC chairman Deepak Amitabh highlighted the corporate governance issues in August last year, the issues remain open and unresolved.

PTC India is currently trading at Rs101.55 down by Rs11.25 or 9.97% from its previous closing of Rs112.80.