- December 23rd, 2011
- Dafiq Hussein
In previous posts we have brought you news regarding the Indian telecoms scandal and today we have the news that Ravi Ruia, the billionaire founder of Essar Group, has decided to step down temporarily from his post.
This comes following the legal ruling in New Delhi that has stated that Mr Ruia is to face charges in front of a special court. This is of course part of the investigation into the telecoms scandal that is estimated to be costing India as much as £24.8 billion in lost revenue. A huge amount of money therefore, and a sum that puts cheap calls to India into perspective somewhat!
Mr Ruia is the most senior executive that has become embroiled in the scandal so far. He was charged two weeks ago along with his nephew, Anshuman Ruia, who is a director at the company. Three other directors were also charged.
Mr Ruia’s charges were filed by India’s Central Bureau of Investigation two weeks ago. The charges involve alleged impropriety relating to the acquisition of a licence in 2008 by Loop Telecom, which is a smaller Indian telecom organisation.
The decision for Mr Ruia to stand down is a blow to his family and the Essar Group. Mr Ruia, with the help of his brother Shashi Ruia, was a minor shipping and ports player before the pair of them then turned it into one of India’s largest companies. In the process both men earned an absolute fortune and they shot into the top 10 of Forbes’ India rich list.
Mr Ruia has been commenting on his decision, and he has stated: “I believe that as a good corporate governance measure and to ensure that the board and management of Essar Energy continue to be fully focused on successfully delivering against their strategy, I should step aside at this time.” He has however commented that he will take up his post at an “appropriate time”.
This latest breaking news comes as little surprise, and we will continue to keep you up to date on the story whenever there is further news.