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| Viom looks for new chairman after Bhargava's exit |
| Mansi Taneja & Surajeet Das Gupta / New Delhi Feb 15, 2012, 00:54 IST |
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Viom Networks, the joint venture tower company between Tata Teleservices and the Srei Group, is looking for a new chairman.
Subodh Bhargava had quit as head earlier this month, following differences with the management. The company will decide whether to continue with the existing policy of appointing an independent chairman or not in its next board meeting, to be held this week.
Explaining Bhargava’s exit, the vice-chairman and managing director, Sunil Kanoria, told Business Standard, “He (Bhargava) is a professional man. He was of an opinion that ownership and management control should be separated, while we had the contrary view. So, the thought process was different and, subsequently, he quit.”
He said Bhargava was brought in as an independent chairman in 2009, in line with the agreement between the Srei Group and Tatas. This was preceded by the merger of the tower businesses of Tata Teleservices and Quippo to form Tata Quippo, later named Viom Networks.
Srei holds 46 per cent stake with other investors. The Tatas have majority control, with 54 per cent. But the management control is with Srei, in line with the agreement. Kanoria also categorically said: “There are no differences between Srei and Tatas. Tata Teleservices is our big customer and we are committed to long-term development of the company.”
He added, “We are looking for a new chairman. We will have our Board meeting this week and we will take a call on this.” The company may also have a non-independent chairman if both partners agree.
Bhargava decision to quit came after KPMG gave a forensics and audit report on the company. Arun Kapur, former chief executive, had also quit late last year.
Last September, the company had run into controversy over charges of financial irregularities, when a former company secretary alleged the Kanorias had diverted Rs 300 crore to private institutions. The company had appointed KPMG to probe these and other charges. Kanoria said KPMG had found all the allegations were baseless.
Viom has about 38,500 towers and around 95,000 tenancies, with a tenancy ratio of 2.5.
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