HDFC appoints law firms to review resignation letter

HDEC Bank's board has appointed external law firms to review former part-time chairman Atanu Chakraborty’s resignation letter, where he alleged that certain “happenings and practices” at the bank were not in congruence with his values and ethics.

- SUBRATA PANDA

In an exchange filing, the bank said, “To reinforce the robust governance standards of the bank, the board of directors of the bank, at its meeting held on March 23, took a proactive step and approved the appointment of external law firms (domestic and international), to conduct review regarding Chakraborty’s resignation letter.”

The law firms have been advised to provide their report within a reasonable period of time.

‘According to sources aware of the development, the appointment of external law firms for an independent professional investigation is also to give all stakeholders a reassurance that in their opinion, there is nothing wrong from a governance standpoint.

Sources added that one domestic law firm and another US-based law firm have been tasked with the exercise. Their names could not be independently verified.