Dissolve TMB board: Nadars

In a new twist to the ongoing Tamilnad Mercantile Bank saga, the two Nadar community associations""the Nadar Mahajana Sangam and the Dakshinamara Nadar Sangamhas""have requested the Company Law Board to dissolve the board of directors of the bank. The associations have also opposed the move to sack Tamilnad Mercantile Bank Chairman and Chief Executive Officer R Natarajan.

The associations today said the Reserve Bank of India (RBI) should transfer the remaining 34 per cent shares of Tamilnad Mercantile Bank to the Nadar community. They pointed out that a section of the directors of the bank were in collusion with non-resident Indian (NRI) investor Sivasankaran of the Sterling group, and wanted him to retain the 34 per cent stake.

Addressing a press conference, R Sudharson, treasurer, Nadar Mahajana Sangam, said, "The Company Law Board should dismiss the present board of directors of Tamilnad Mercantile Bank and elect new members. The RBI should not permit the transfer of the remaining 34 per cent stake in the bank to Sivasankaran. We would like to buy back the stake for the Nadar community."

Sivasankaran had bought a 67 per cent stake in Tamilnad Mercantile Bank. The Nadar community has so far bought 33 per cent from Sivasankaran for Rs 80.75 crore. Now, the Nadar Mahajana Sangam wants the remaining 34 per cent stake for a total price of Rs 155 crore. Sivasankaran is understood to be demanding close to Rs 100 crore for the balance stake.

The Tamilnad Mercantile Bank has not held a annual general meeting for the last seven years.