The Hindu Business Line : Anil Nanda skips board meet — Escorts passes Rs 100-cr term loan proposal

The loan is to be raised by pledging a range of securities with the Life Insurance Corporation (LIC). The securities are believed to include 16 lakh shares of Escorts Heart Institute and Research Centre (EHIRC), an Escorts Ltd subsidiary.

The board also took on record the letter of dissent written by Mr Anil Nanda, the younger brother of Escorts Ltd Chairman, Mr Rajan Nanda. In the letter, Mr Anil Nanda had expressed his dissent over a recent decision by Escorts Ltd's Borrowing Committee to raise a term loan of Rs 100 crore by pledging 16 lakh shares of EHIRC and called the move "wholly improper and illegal".

He did not attend the board meeting held today.

In a letter written to Escorts Ltd's company secretary dated May 10, Mr Anil Nanda had said that the move to pledge shares of EHIRC "is not only against our commitment to preserve the public charitable status of EHIRC but is also wholly improper and illegal. These shares have a paid-up value of Rs 1.60 crore only. If these are held out as a security for a loan of Rs 100 crore, it can only be on the basis that either we do not any more want to register EHIRC as a Section 25 company (a non-profit charitable company) or that we are not disclosing to LIC our commitment to do so".

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