No Hiccups For Itc Chief At Board Meet

The board endorsed the company's decision to apply to the government for a joint venture with ConAgra in ITC Agro Tech, a proposal to clear up the mess in ITC Global Ltd and the first quarter results which shows an increase in trading profits by 50 per cent compared to last year during the same period.

The session was lengthy, as non-executive directors were filled in on the details of the controversial issues that have rocked the company over the last several months. It lasted from 10 a m till late into the afternoon.

According to inside sources, the tobacco major has decided that the Rs 180 crore due from it as deposit to the Customs Excise Gold (Control) Apellate Tribunal this fiscal will be generated through internal accruals. It could not be ascertained whether this was discussed at the meeting.

 

The board was given a clarification on two key issues which include the payment of hospital bills of Y C Deveshwar when he went to the US for a by-pass surgery which are alleged to have been made by the Chitalias. The board was told categorically that the payment was not made by the Chitalias but by ITC Ltd.

The board also clarified that while ITC employees were offered a discounted rate for buying apartments being constructed by Landbase, a company in which ITC -owned Travel House has a substantial shareholding, the directors bought flats at commercial and not at a discounted rate.

The financial institution members are believed to have heard through the explanations and will revert to their respective managements with them.

The board is believed to have also congratulated Y C Deveshwar and his team for the surge in profits in the trading profits of the company in the first quarter. The board also discussed the proposal of ITC Ltd to go in for a joint venture with US multinational ConAgra as part of its plan to rope in international companies in areas were ITC does not have special expertise.

Deveshwar's position on charges of Fera violation were also made clear publicly at the company's AGM yesterday. He said he was not a legal man and was in no position to offer comment on the alleged Fera violations by some of the company's top executives, which could prejudice the interest of ITC or any individual, because the matter is either sub judice in New Jersey or under examination by the Enforcement Directorate.

Deveshwar said that to the best of his knowledge and the knowledge of the board of ITC, there is no evidence as of now of Fera violation. Deveshwar's observations were evidently based on the findings of the special audit committee report.

Fallout of ITC board meet

* Company's decision to apply to the government for a joint ventur with ConAgra in ITC Agro Tech cleared

* A proposal to clean up the mess in ITC Global Ltd approved

* First quarter results, which shows a 50 per cent year-on-year increase in trading profits passed

* Board also clarified that while ITC employees were offered a discounted rate for buying apartments being constructed by Landbase, the directors bought flats at commercial rates