Independent directors to exit Money Matters

The four high profile non-executive independent directors in Money Matters Financial Services Ltd, the Mumbai-based listed company, that allegedly mediated and facilitated loans to corporates from LIC, LIC Housing Finance and a clutch of state-owned banks, are set to exit the tainted company.

RN Bhardwaj, former chairman of LIC and LIC Housing Finance, told The Indian Express that an emergency board meeting has been called tomorrow. "I could have resigned today. But we were appointed by the shareholders and it will be appropriate that a board meeting is called. All the four independent directors will submit their resignation tomorrow," he said.

B Samal, former CMD of state-owned Allahabad Bank and VP Singh, former chairman and CEO of IFCI Ltd, are likely to submit their resignations. The fourth independent director is Sanjiv Kapoor, a chartered accountant, who has earlier audited the books of LIC. Bhardwaj said all four independent directors will most likely tender their resignations.

While Bhardwaj, Samal and Singh were appointed directors on the board of Money Matters on August 21, 2009, Kapoor was appointed on July 10, 2010. Bhardwaj claimed that the independent directors were not aware of the day-to-day operations of the company. He denied interaction with LIC or any other entity for arranging loans for corporates.

"The promoters wanted to professionalise the company. They wanted us to add value and recommend strategies to sustain a high level of growth," he said. Different verticals including those for securities broking, marketing of financial products, mergers and acquisitions were added based on their advice, Bhardwaj said.

Bharadwaj is on the board of more than 10 companies including JP Associates, JP Infratech, Reliance Infratel, according to the annual report of Money Matters. Singh is on the board of GMR Industries, Supreme Infrastructures and some other private limited companies. Samal is on the board of over a dozen companies including JP Associates, JP Infratech.

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