The raging row over the alleged takeover bid of Tamilnad Mercantile Bank (TMB) by a clutch of foreign institutional investors (FIIs) has taken a new turn, with one of the top officials of the bank shooting off a letter to the Reserve Bank of India (RBI) accusing one of the directors of the bank of `illegally’ selling his holding to the FIIs.
In his letter to the apex bank, a copy of which is available with FE, B Ramachandra Adityan, executive director of TMB, has requested the apex bank to “issue directions for the thorough investigation into the whole transfer of share, and source of funding for the acquisition of the said shares”. He has also requested the RBI to issue appropriate directions that the investors do not exercise any right on the shares in view of the findings of the of Madras High Court to ensure proper management of the bank in terms of the said order. “I have to bring to the knowledge of RBI the following startling information in respect of MGM Maran, who is a director of the Tamilnad Mercantile Bank for the past eight years and was also the part time chairman for a period of one year from May 2007 to April 2008. MGM Maran and myself entered into an agreement with Shivsankaran’s Sterling Group on 10th May 2006 for the purchase of 33.6% of shares of TMB which was held by Shivsankaran as the beneficial owner. We completed the purchase of shares from Shivsankaran by allotting 16.42% to foreign investors and 7.07% to Gokul Patnaik & Vector Program Pvt Ltd. and the balance to the investors of the Nadar community which includes myself (4.8%) and MGM Maran 3% (MGM Maran totally owns 5% of shares of TMB.)”
