Audit company KPMG has given a clean chit to the Kanorias of Srei group in the alleged financial irregularities in tower company Viom Networks.
Viom, a venture between Tata Teleservices and Srei Group enterprise Quippo, appointed KPMG to assess the extent of graft, if any, after a former company secretary alleged the Kanorias diverted funds to the tune of Rs 300 crore to some private institutions from the company. The Tatas have a 51 per cent stake in Viom, while the Kanorias hold 18 per cent. The rest is with other investors. However, the company is run by the Kanorias.
At a meeting last week, the top management and board members, including those from the Tatas, told this to employees. A spokesperson at Viom Networks declined to comment.
In 2009, the tower businesses of Tata Teleservices and Quippo were merged to form Tata Quippo, which was subsequently named Viom Networks. Initially, the Tatas had a 51 per cent stake and the Srei group the balance. The stake of Srei has come down to 18 per cent, but it still has the management control.
According to a contract between the two partners, the Srei group will continue to have the management rights till it has a 12 per cent stake in the venture.
The company secretary was fired on July 25, following which he made the allegations. Hemant Kanoria, managing director of the Srei group, had earlier said since the company had a whistle-blower policy and shareholders maintained higher standards of corporate governance, it was decided to appoint an independent auditor for a probe.
Viom has more than 38,500 towers and around 95,000 tenancies. It plans to roll out 20,000-25,000 additional towers in two years. According to the company’s website, Viom is the strongest player in neutral host shared in-building communication solutions, with installations already completed at most of the major airports.
