On Monday, Aditya Birla Capital said that outgoing CEO Ajay Srinivasan was being transformed into a new role created at the group level in consultation with him. After serving as chief executive for more than 14 years, Srinivasan expressed a desire to take on a new role within the group, the statement said. The clarification came after a news report earlier today quoted a whistleblower letter, alleging that Srinivasan had been asked to leave due to corruption, internal trade and running in front of Aditya Birla Sun Life Asset Management Company (AMC). “A story has been published this morning based on a hint of interest. These allegations are untrue and we strongly want to deny them, “said a spokesperson for Aditya Birla Capital.
The whistleblower letter, which Aditya Birla accused Sun Sun AMC of internal transactions and pioneering, was sent to the board and asked Aditya Birla MF CEO Balasubramanian and CIO Mahesh Patil to investigate, according to the news report. It is learned that Girish Patil, a senior equity trader at the fund house, has demanded an inquiry. “The company has received a complaint alleging that Aditya Birla Sun Life AMC and its employees were involved. As per the policy of Aditya Birla Group, an independent committee was formed to investigate the allegations. The committee did not find any merit in the complaint. No complaint was lodged against Ajay Srinivasan by the employee, ”the spokesperson added.
A company spokesperson further clarified that Girish Patil and Mahesh Patil are not related, the report said. “Girish Patil and Mahesh Patil are in no way related to each other,” the statement said.
Denying the allegation of employee departure due to corruption in the fund house, the spokesperson clarified, “No employee of Aditya Birla Capital and Aditya Birla Sun Life AMC has resigned as a result of this corrupt allegation. Girish Patil left the company for better prospects outside the group. Vineet Malu has joined the Aditya Birla group internally, in line with the group’s policy of career advancement. “
Regarding all the claims made in the article about corruption, front running and insider trading in Aditya Birla Sun Life AMC, the company said in its statement: We have a strong system in place to deal with complaints and grievances across the Aditya Birla Group. ”
Shares of Aditya Birla Capital, the holding company for the group’s financial services business, including mutual funds, fell 5% to close at Rs 95 on Monday.