Khetan brothers canvassing for their near ones

KATHMANDU:

Two promoters of Everest Insurance Company (EIC), who were suspended from the board of the non-life insurance company, are reportedly wooing shareholders to support their near ones in the upcoming special annual general meeting (AGM) of the company.

The company is issuing special AGM on February 13. The AGM will elect a seven-member board of directors.

According to a source, erstwhile board chairman Rajendra Kumar Khetan and board member Prem Prakash Khetan are using their close aides to canvass for their near and dear ones. They are coaxing shareholder to allow their vote cast by proxy.

Rajendra Kumar Khetan is on the run since December 27 2013 after the Central Investigation Bureau (CIB) launched investigation against him on the charge of embezzling Rs 60 million at EIC.

“Though the suspended board members are not eligible to contest, they are mobilizing their aides to win support for their near and dear ones,” the source said.

The Insurance Board had suspended Rajendra Kumar Khetan, Ratan Lal Sanghai, Birendra Kumar Shah, Chandra Prakash Khetan, Prem Prakash Khetan, Madhu Sudan Agrawal, Om Prakash Sikariya Niranjan Kumar Tibrewala and Ravi Kumar Tibrewala in October 2013, declaring them ineligible to run insurance business for five years. Later IB had given clean chit to Niranjan Kumar Tibrewala and Ravi Kumar Tibrewala. The duo can contest the election.

EIC has around 4,900 public shareholders. Khetan, Sanghai, Sikariya and Tibrewala groups hold 15 percent stake each in the company.
Commenting on vote canvassing, an IB official said he didn´t the shareholders would support the tainted directors.

IB had suspended the board of EIC after the latter disobeyed its directive to recover Rs 40 million paid illegally to Himalayan Snax and Noodles against fire insurance claim. Rajendra Kumar Khetan was at the helm of both the companies at that time.

Santosh Prasai, coordinator of the IB´s management team at EIC, said that the AGM would elect a new board of directors. “The new board of directors will appoint the new CEO,” he added.

A committee led by Prasai is at the helm of EIC since October 2013.

Source: Republica