The Hindu Business Line : IDFC MD Munjee's resignation accepted

THE Chairman of Infrastructure Development Finance Company (IDFC), Mr. Deepak S. Parekh, on Wednesday accepted the resignation of the company's Managing Director and Chief Executive Officer, Mr. Nasser Munjee.

Mr Munjee, who had put in his resignation along with six other senior executives of the company to express his "unhappiness" over the reported move of the Government to bring IDFC under the umbrella of State Bank of India earlier this month, has been relieved of his duty. "Today was the last day of Mr. Munjee at IDFC," an official confirmed.

Mr. A.K.T. Chari, IDFC's Chief Operating Officer (COO), will be holding temporary charge of the office till a final decision is taken at the IDFC's next board meeting slated for April 20.

Although the Finance Ministry had subsequently clarified that it had no intentions of handing over IDFC to SBI, the senior executives of the company had resigned, following reports that the Ministry was keen on merging IDFC with SBI so as to have a bigger say in the operations of the Rs. 50,000-crore infrastructure fund that was proposed by the Finance Minister, Mr. Jaswant Singh, in the interim Budget.

The reports had it that the Government's plan for the merger was to begin with transfer of RBI's 15 per cent stake in IDFC to SBI, which at present owns six per cent equity in the company. While the Government has 20 per cent, it planned to have a tighter grip on the company by transferring the smaller shareholdings, like UTI's 3 per cent, to have control of about 43 per cent of IDFC's stake, according to the reports. In fact, the day he put in his papers, Mr. Munjee had told Business Line that any move to bring IDFC under SBI would affect the operations of the company and dilute its autonomy.

Sources said the resignations of the six other senior executives who had put in their papers along with Mr. Munjee have not yet been accepted. "The issue will be decided at the board meeting," they said.

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IDFC MD Munjee's resignation accepted