Gitanjali faces top level exodus in the wake of PNB fraud

NEW DELHI: The PNB scam has triggered a top level exodus at Gitanjali Gems, with board member S Krishnan saying that there was no one to even organise a board meeting to clarify the issues surrounding the purported fraud.

While compliance officer Pankhuri Warange said there is a "sense of fear and uncertainty" among the employees in the company and there is an "absolute cluelessness" from the senior management, forcing her to quit.

She also cited resignation of chief financial officer Chandrakant karkare and others from the company.


In the regulatory filings, Warange also mentioned that the board meeting and quarterly results disclosure, which was scheduled on February 14, had to be postponed as there was "no guideline" from the senior management.

Gitanjali Gems could not respond to queries raised by the regulator over media speculations pertaining to the company because officials were engaged with the investigating agencies, she said.

"The regulators will appreciate that the postponement of the results and non-submission of disclosure was unintentional and solely on account of aforesaid events and absence of any guidance from the senior management...," she said in the filing.

Citing reasons for resigning as independent director of the company, Krishnan said. "I notice that the KMPs (key managerial personnel) of the company relinquished their position and there is no one to organise a board meeting in the company or giving clarifications.