Mumbai, 30 August: One the eve of the Annual General meeting of SHCIL Services Ltd (SSL) and with days to go before the AGM of the parent Stock Holding Corporation of India Ltd. (SHCIL), the organisation has got itself a new Whole Time Director in Ramesh Chander Razdan. There were reports late in the evening that Mr.Razdan may even be taking over as the Managing Director of SHCIL instead of merely holding charge on a full time basis.
Mr.Razdan, we learn, may replace R.K.Bansal, who has virtually run SHCIL for the part four and a half months. Razdan has a post graduate degree in Marketing Management and is a Chief General Manager at IDBI. He is currently based in Delhi and responsible for operations in north India.
It may be recalled that on April 15, IDBI, which is the biggest shareholder of SHCIL had sent its rouge CEO R.Jayaraman Iyer on leave and asked Mr.R.K.Bansal to take control of the organisation and initiate a damage control exercise. The then IDBI chairman V.P.Shetty was asked to take charge of SHCIL on the direct intervention of the Prime Minister when a dubious plot to defraud the organisation was exposed by this writer. This included siphoning profits from an e-stamping contract through a Singapore entity, setting up several private companies with the pre-fix SHCIL to cause confusion and outsource lucrative contracts from SHCIL and to alienate SHCIL’s 100% subsidiary, SHCIL Services Limited and divert business from the parent by causing confusion over management. Astounding as it seems, neither the SHCIL board nor the regulators knew that SHCIL’s holding in SSL was down to 25% and it had no control over the subsidiary, until we exposed the shady activities. Jayaraman Iyer achieved this in cahoots with S.Ramanathan CEO of the subsidiary.
R.K.Bansal did indeed succeed in regaining control over SSL, formerly a 100% subsidiary of SHCIL where 75% of the shares were surreptitiously transferred to three individuals and a Singapore based entity. However, Bansal was reluctant to initiate any action against officials who colluded with the previous management. Although the official line is that SHCIL is waiting for a report by KPMG’s forensic fraud detection unit, we learn that this may not be particularly hard hitting.
We learn that Mr.Bansal looked at the SHCIL charge as a temporary assignment and is keen on returning to IDBI, what remains to be seen is whether Mr.Razdan maintains continuity and ensures a thorough clean up of the organisation.