ICRA sacks CEO amid regulatory probe

ILand FS got favourable rating from agency Rating agency ICRA, which had earlier sent its managing director and chief executive officer Naresh Takkar on leave amid a regulatory probe into alleged interference by its officials to ensure good rating for troubled ILand FS, has terminated the services of Mr. Takkar. “The board of directors of ICRA Limited , at a meeting today, after due consideration and taking into account the best interests of the company and its various stakeholders, has decided to terminate the employment of Mr. Naresh Takkar as managing director and group CEO of ICRA, effective immediately,” said the agency in a stock exchange statement. “ICRA remains committed to ensuring the independence and integrity of its ratings process and sound corporate governance,” it added. While the board will commence a search for a replacement, Vipul Agarwal, who was appointed interim chief operating officer on July 1, would be responsible for the daily operations until a new CEO is appointed. Mr. Takkar was sent on compulsory leave in July. The statement comes almost four months after the agency — without naming ILand FS or any of its subsidiaries — disclosed that the Securities and Exchange Board of India had initiated adjudication proceedings in a matter related to rating assigned to one of its clients and its subsidiaries. It further disclosed that SEBI had also forwarded an anonymous complaint that it received against the company. “The company is in the process of addressing certain matters (i) related to credit rating assigned to one of its customer and subsidiaries, regarding which adjudication proceedings have been initiated by SEBI and (ii) related to an anonymous representation that was forwarded to the company by SEBI,” said the company, as part of its earnings statement dated May 9. It further said that the company has appointed an external expert to assist into the matters. According to reports, the rating agency has appointed KPMG to look into the matter.