Viom Networks hires KPMG to probe an allegation into misappropriation of funds
14 Sep 2011
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Viom Networks, a joint venture between telecom operator Tata Teleservices and SREI Group firm Quippo, has hired KPMG to probe an allegation into misappropriation of funds by Kanorias and its chief executive. The probe by the forensic division of KPMG follows charges by former Viom company secretary Arun Bansal that Kanorias and CEO Arun Kapur colluded for personal benefits, causing losses to other shareholders, The Economic Times reported today.
According to Business Standard the fund diversion was to the tune of about 3 billion rupees.
"The company has recently disengaged the services of a few non-performing employees who in turn have raised some issues claiming alleged irregularities," a Viom spokesperson said.
Bansal, the former secretary at Viom that is looking to buy the troubled rival telecom tower firm GTL, has charged that the financials of Viom do not represent the truth and that the chief executive has been acting against the interest of other shareholders.
Other share owners include Infrastructure Development Finance Co., Oman Investment Fund and Government of Singapore Investment Corporation, popularly known as GIC.
Tatas own 52 per cent, but a shareholder agreement gives management control to Kanorias as long as they own 12 per cent of the firm. Other shareholders include Infrastructure Development Finance, Oman Investment Fund and Government of Singapore Investment Corporation.
"Viom financials are materially untrue and reflect untrue state of affairs,'' says the letter written by Bansal to Viom board members."
"They would take about 4-6 weeks time for the audit report to be out. I don't think there is anything, but the person has been retailiating because he has been fired," Hemant Kanoria, director of Viom and chairman and managing director of SREI Infrastructure told TV channel CNBC-TV18.
