Ajay Srinivasan steps down as Managing Director of Aditya Birla Capital

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Aditya Birla Capital Ltd (ABCL) said on Monday that Ajay Srinivasan had decided to step down as managing director and CEO of the company as he had “expressed his desire to take on a new role within the group”.

“The company has received a complaint in which certain allegations were made about Aditya Birla Sun Life AMC and its employees. In accordance with Aditya Birla Group policy, an independent committee has been formed to investigate the allegations,” the company said in an exchange filing. According to a news report, serious allegations of corruption and mismanagement, including front and insider trading, were made by a whistleblower against the ABCL and Aditya Birla Sun Life AMC.

“The committee found no basis for the allegations. There were no allegations whatsoever made against Ajay Srinivasan by the said employee,” a company spokesperson said.

“Regarding Srinivasan’s resignation, it is clarified that Srinivasan had expressed his desire to take on a new role within the group, having served as chief executive for more than 14 years,” he said. “A role is being worked out at group level in consultation with him,” he said.

“A story appeared this morning based on insinuations of vested interests. These insinuations/allegations are devoid of facts,” he said. Aditya Birla Capital’s Board of Directors recently appointed Vishakha Mulye as the next CEO of Aditya Birla Capital.

ABCL is the holding company for the financial services activities of the Aditya Birla Group. The magnitude is evidenced by the overall AUM in asset management, life and health insurance businesses, rising 16% year-on-year to over Rs 372 423 crore.

Aditya Birla Capital fell 5% to Rs 95.05 and Aditya Birla Sun Life AMC Ltd fell 7.44% to Rs 452.30 on BSE on Monday.

“There have been no employee departures at Aditya Birla Capital and Aditya Birla Sun Life AMC, following these malicious allegations. Girish Patil left the company to pursue better prospects outside the band. Vineet Maloo has evolved internally within the Aditya Birla Group in line with the Group’s career progression policy,” he said.

“The reference in the article associating his new role with the AMC company is not correct and malicious. Moreover, it is also not correct, as mentioned in the article, that Girish Patil is linked to Mahesh Patil. Girish Patil and Mahesh Patil are not related in any way,” the company said.

“Aditya Birla Sun Life AMC has a 27-year track record and strong credibility for adhering to the highest standards and processes. At Aditya Birla Group, we have a strong mechanism for handling complaints and grievances, should they arise,” he said.

Axis Asset Management Company, the mutual fund promoted by Axis Bank, recently suspended two of its fund managers for alleged improprieties, including front running.

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