Mahindra and Mahindra (M&M) vice-chairman and managing director Anand Mahindra has offered to resign from the state-owned Air India board as an independent director citing conflict of interest almost a year after he was assigned the job to improve the operational and financial health of the company.
While Mahindra has said in his letter to the civil aviation minister Vayalar Ravi that the new business opportunities to his group company poses a potential conflict of interest, in reality Mahindra Engineering Services which is into aerospace was founded in 2003 and has been in operation for many years.
Anand Mahindra did not reply to either text message or phone calls made to him by FE.
The Mumbai-based Mahindra Engineering Services had in 2009 acquired 75.1% stake each in Aerostaff Australia and Gippsland Aeronautics to manufacture aircraft component.
The government had in May last year approved the appointment of four independent directors, including Anand Mahindra, on the Air India board. The other directors were former Indian Air Force chief Fali H Major, Ambuja Realty group chairman Harsh Neotia and Ficci secretary general Amit Mitra.
?I have received the letter of Mahindra. Since his appointment had the approval of the PMO I will first take this with them,? aviation minister Vayalar Ravi told FE.
Ministry sources indicated that at least two more independent directors may also quit the company before they complete their term. At the time of appointment the government had said that the new directors would have a three-year term or till further order whichever occurs earlier.
