Srei Equipment Finance's company secretary resigns; banks lift salary cap

The Srei group continues to face human resource crisis with Srei Equipment Finance (SEFL) company secretary putting in her papers on Monday, even as the banks have lifted the cap on the salary of senior-level executives.

Srei Infrastructure Finance Ltd (SIFL), the parent company of Srei Equipment, saw its company secretary Sandeep Kumar Lakhotia resigning earlier in March this year.

"We wish to inform that Ritu Bhojak, company secretary of Srei Equipment Finance Ltd has resigned from the position of Company Secretary & Compliance Officer of the company and will be relieved w.e.f. close of working hours of 10th May, 2021," SEFL said in a statement.

SEFL, an unlisted company on bourses, said the company will be shortly appointing a new company secretary and compliance officer.

As per sources, over 200 employees have left the Kolkata-based Srei group since December last year in the wake of the pandemic induced economic pressure which created an asset-liability mismatch.

This made the lenders of the group, which is into asset financing and leasing space, take control of its finances besides capping the salary of high level executives to Rs 50 lakh.

Sources said while the NCLT order prohibits banks to take any coercive actions, banks had put a cap on salaries of senior employees.

"The cap has been removed with effect from April 1, 2021," they said.

However, since the arrears have remained uncleared and salaries are routinely delayed, employee exits continue unabated, they added.

Besides, chief operating officer of SEFL Pavan Trivedi also left the organisation earlier in April, said the sources, adding more senior-level exits may happen if the situation is not addressed quickly.

However, it is learnt that the company is discussing with banks to find a solution and release arrear payments.