P Kishore, the MD and co-founder, may be asked to step down.
Concerned about the hit that brand Everonn Education has taken after its managing director was arrested on charges of bribery and tax evasion, the company’s board seems likely to announce SKIL Infrastructure's group chairman, Nikhil Gandhi, as its new chairman.
, the MD and co-founder, was arrested with two others on August 30. Shortly after, Jamshed J Irani, the non-executive chairman, said he was too shocked to stay on and resigned, too.
“Yes it has been confirmed to us that Nikhil may be the next chairman. To avoid any further damage to the brand, Kishore may be asked to step down and distance himself from the company,” said an executive who is also an investor in Everonn.
Gandhi was inducted on the board of directors as a non-executive member last year. His office confirmed the Everonn development and sources said the latter’s board is likely to finalise the decision this week. In December last year, SKIL bought a 21 per cent stake in Everonn for Rs 208 crore. Kishore has an 8.52 per cent stake in Everonn. The company’s stock was down by 20 per cent, to Rs 281.20, on the Bombay Stock Exchange.
“I am not passing judgment on whether (Kishore) was guilty or not. But if he has confessed, something was wrong with the corporate governance,” Irani had told Business Standard after resigning as chairman. Kishore is charged with concealing taxable income of Rs 116 crore. And, on its detection, to have tried through an intermediary to get the tax department’s additional commissioner to suppress Rs 60 crore of the total taxable income, says the Central Bureau of Investigation, in return for a Rs 50 lakh bribe. The official was one of the two others arrested with Kishore.
Meanwhile, there is rumour that National Skill Development Corporation (NSDC), which had taken an equity investment in Everonn Skill Development Ltd, a joint venture between Everonn Education and NSDC, is likely to end its ties with Everonn after these developments.
When asked, Dilip Chenoy, MD and CEO of NSDC, said: “NSDC is evaluating the situation, as nothing is clear right now.”
The joint venture was to set up skill development centres across the country. NSDC had committed around Rs 115 crore, which included the equity portion of Rs 15 crore and Rs 100 crore of loan. NSDC has 26 per cent in the JV and Everonn the rest. The JV was planning to invest around Rs 700 crore over the next three years to set up centres. The aim was to train 15 million people over 10 years in nine key sectors, Kishore had said.
