Fis Not To Press For Itc Changes
BAT Plc, the foreign parent of ITC, said that although no formal communication had been received from the directorate, they would cooperate with the authorities. They said a "joint approach" was being worked out with financial institutions.
In Mumbai, financial institution sources said they were drawing up a defence strategy to cover their errors at ITC Ltd, which is bound to come up at the board meeting sought by BAT Industries Plc on November 12.
Sources at the financial institutions, however, put the blame squarely in the finance ministry's court.
"All that happened at ITC Ltd after BAT tried to oust Chugh was with the concurrence of the finance ministry. Now, it is not fair for the finance ministry to pass the buck to us," an FI source said.
The FIs are reportedly not in a hurry to take any decisions on top-level changes at ITC. The are looking to the finance ministry for guidance. It, however, felt that the FIs do want to take any decisions in a hurry.
Says the FI sources, "There is no need to make any top-level changes in a hurry. In fact, there has been no proof that Yogi Deveshwar has been involved in the Fera violations. In fact, he has come clean and agreed to cooperate with the enforcement directorate." However, the FIs say, "Not all top-level executives are safe. If we find them linked to the Fera scam, we will press for their ouster".
IIFCI, one of the FIs which has a representative on the board, said any decision on opting for alternative shareholder groups in case existing managements are discredited should be taken jointly by all FIs, without referring specifically to the ITC situation.
In Calcutta, Deveshwar was interrogated for a second time yesterday A harried Deveshwar while emerging from the enforcement office said: "Why are you doing this to me? I have no comments to make."
Asked whether he would resign, Deveshwar said: "Why should I resign? I was the youngest director of ITC and had successfully run Air India and ITC Hotels. I feel I have the capability to carry this company forward".
Terming his company's involvement in Fera violation charges as "a mixture of fact, fiction and politicking", Deveshwar refused to comment on the arrest of his predecessors Chugh and Sapru.