Conflict Of Interest: Vinayak Chatterjee Also Quits IFCI Board

Wed, 09/19/2007 - 21:15 — Sahad P V

Vinayak Chatterjee, chairman of infrastructure and engineering consultancy firm Feedback Ventures, has also quit the board of the state-owned lender IFCI, which is currently selling a 26 per cent stake to strategic investors. Chatterjee has quit following IDFC and HDFC have emerged as two of the 10 bidders/consortia for the stake.
IDFC owns 20 per cent stake in Feedback while HDFC owns 10 per cent, and the top managers of both the companies are sitting on the board of Feedback. Since Chatterjee sits on the board of IFCI where his investors are also bidders, that will amount to conflict of interest. IDFC is bidding solo, while HDFC is part of a consortium which also includes WL Ross and Standard Chartered Bank.
Last week, IFCI chairman N Balasubramanian quit the post as he is the advisor of Standard Chartered Bank which is leading a consortium.