Uttam Prakash Agarwal, a former board member of Yes Bank, has written to Reserve Bank of India governor Shaktikanta Das alleging violation of norms by the bank’s MD and CEO Ravneet Gill, demanding action.
Mr. Agarwal resigned from the board last month citing governance issues while Yes Bank said the board was scheduled to look into the ‘fit and proper status’ of Mr. Agarwal but he resigned before the meeting started. In his letter, Mr. Agarwal alleged breach of governance, non-compliance, undue influence and control on a majority of board members by Mr. Gill.
He said discussion on his ‘fit and proper’ status was not in the board meeting agenda which he received on January 9.
Board meet
The board meeting was on January 10.
“This was done intentionally and purposely to divert the attention from the regulators, stock exchanges, media and public at large from factual situation and his (Mr. Gill’s) own failure on various counts, major being zero progress on capital raising created by Mr. Gill in the name of [Reserve Bank] for which I am initiating separate legal proceeding against him,” the letter added.
Mr. Agarwal alleged that Mr. Gill had been able to effectively control a majority of board members and key management personnel (KMP) by various unethical means
In the letter he said, the RBI may like to take such appropriate steps including change of MD & CEO, and other key managerial personnel.