Center asks PFS, PTC to take corrective steps, doctors show

“In this regard, the PTC and PFS should, without any further delay, comply with the report of RBI and the recommendations to the satisfaction of RBI. This includes reversing decisions that impair proper corporate governance, maintaining a reasonable distance distance between the two companies, and promptly addressing conflicts,” the ministry reviewed according to a November 5 communication. Mint,

This was communicated to PFS and PTC India against the backdrop of inspection of PFS under Section 45N of the RBI Risk Assessment Report reviewed by the Union Ministry of Power.

“Furthermore, both the PTC and the PFS may seek and address the presence of any other conflicts,” the power ministry wrote. “The overall compliance report on the above matter along with the certificate that all the issues raised by RBI have been resolved. The closure may be sent to this Ministry within 15 days to their satisfaction,” it said.

Former bureaucrat Rakesh Kakar on Friday stepped down as an independent director from the board of PTC India, citing corporate mismanagement. Last week, all three independent directors of PFS resigned alleging “instances of serious default in corporate governance”, resulting in sharp selloff in PFS and PTC shares.

Union Power Secretary Alok Kumar confirmed the stand of the government Mint And he said that he is sure that RBI, Securities and Exchange Board of India and Ministry of Corporate Affairs as well as promoters, regulators like NTPC Ltd, PGCIL, NHPC and PFC will take a call to bring in corporate governance soon. back on track.

PTC India was established in 1999 as a public-private initiative. Four state-owned companies are the promoters of PTC India with 16.20% stake.

“I think a few months back we got RBI inspection report about PFS. Hence, we advised PTC to follow RBI instructions and take corrective action,” Kumar said and pointed out that PTC is a government owned is not a company or a Central Public Sector Enterprise.

Emailed queries to a PTC spokesperson late Sunday night did not elicit any response at press time.

Kumar said, “We always aim for strong corporate governance and we are doing the same in our CPSUs and we have issued guidelines for distribution companies as well. We sincerely hope the same will happen in PTCs. Corporate Governance Track But will come back,” he said.

On Friday, PTC India Chairman and Managing Director Rajiv K Mishra in a press conference had termed the allegations leveled by three outgoing independent directors of PFS as an attempt to “defame” the company and questioned the timing and intent of the resignations. . Come a few hours before Kakar’s resignation.

PFS plans to accept the resignations of all three independent directors and take steps to appoint new independent directors at the board meeting on January 22. However, the board meeting could not take place as SEBI had not approved it. Audit firm KPMG has been asked to conduct a “forensic study” of the allegations against the company’s management.