HDFC Bank Review Finds No Evidence for Ex-Chairman Chakraborty's Claims
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HDFC Bank's independent legal review, conducted by US and Indian law firms, found no evidence to substantiate former chairman Atanu Chakraborty's resignation claims of unethical practices or governance issues, despite his non-participation in the probe.
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Mumbai: HDFC Bank said on Friday that an independent legal review into concerns flagged in former chairman Atanu Chakraborty's resignation letter had concluded and found no evidence to substantiate his claims. ET on June 16 reported that the law firms that conducted the review found no merit in the concerns raised by Chakraborty.
The bank in March appointed US-based Wilson Sonsini Goodrich & Rosati and India's Wadia Ghandy & Co to examine allegations related to unethical practices or corporate governance issues flagged by him during his tenure.
The firms conducted the review over three months, examining board and committee meeting records, interviewing independent directors and senior management, including the MD and CEO, and reviewing additional documents, HDFC Bank said in a stock exchange filing. It said Chakraborty did not participate in the probe despite repeated requests from the bank and the external law firms. The findings have been submitted to the board following completion of the review.
The bank said the law firms found that Chakraborty's statements and their implications were not substantiated by documentary evidence or witness accounts. It said the minutes of meetings attended by Chakraborty were a product of a comprehensive drafting, review and approval process, allowing him to record any happenings and practices not in congruence with his personal values and ethics.
The bank also said no contemporaneous support for Chakraborty's statement was found in board or board committee minutes or materials reviewed, or in contemporaneous communications on the review and approval of minutes of meetings he attended.
The bank said the review found no evidence supporting concerns raised by Chakraborty regarding the "Dubai matter". There were allegations that the bank's Dubai branch was involved in mis-selling of Credit Suisse's AT-1 bonds. The bank had denied the allegations. In March, Chakraborty resigned citing certain happenings and practices observed over the past two years that were not in congruence with his personal values and ethics. After Chakraborty's resignation, the bank appointed independent director Keki Mistry as interim chairman, and last week extended his term by three months to oversee the review process.
