Aditya Birla Capital clarifies on CEO Srinivasan’s exit, says found no merit in whistleblower complaints

Aditya Birla Capital on Monday said that outgoing CEO Ajay Srinivasan is transitioning to a new role being crafted at the group level in consultation with him. Srinivasan had expressed his desire to take on a new role within the group, after having served as chief executive for over 14 years, the statement said. The clarification comes after a news report earlier today cited a whistleblower letter, which alleged that Srinivasan was asked to leave due to corruption, insider trading and front running at Aditya Birla Sun Life Asset Management Company (AMC). “A story has appeared this morning based on insinuations of vested interest. These insinuations/allegations are bereft of facts and we wish to emphatically deny them,” said the Aditya Birla Capital spokesperson.

The whistleblower letter, which alleged insider trading and frontrunning at Aditya Birla Sun Life AMC, was sent to the board and reportedly asked to investigate Aditya Birla MF CEO A Balasubramanian, and CIO Mahesh Patil, according to the news report. It also reportedly sought an investigation against Girish Patil, a senior equity trader at the fund house. “The company received a complaint in which certain allegations were made about Aditya Birla Sun Life AMC and its employees. As per the Aditya Birla Group policy, an independent Committee was formed to investigate the allegations. The Committee did not find any merit in the allegations. There was no allegation whatsoever, made against Ajay Srinivasan, by the said employee,” the spokesperson added.

The company spokesperson also clarified that Girish Patil and Mahesh Patil were not related, unlike stated in the report.“Girish Patil and Mahesh Patil are not related to each other in any manner,” the statement said.

Denying the allegations of employee exits due to corruption in the fund house, the spokesperson clarified, “There have been no employee exits at Aditya Birla Capital and Aditya Birla Sun Life AMC, as a fall out of these malicious allegations. Girish Patil left the company to pursue better prospects outside the group. Vineet Maloo moved internally within Aditya Birla Group, in line with the Group’s policy of career progression.”

Regarding all the claims made in the article about corruption, front running and insider trading at Aditya Birla Sun Life AMC, the company said in its statement, “Aditya Birla Sun Life AMC has a 27 year track record and strong credibility of having adhered to the highest standards and processes. Across the Aditya Birla Group we have a robust mechanism of dealing with complaints and grievances, if any.”

Shares of Aditya Birla Capital, which is the holding company for the group’s financial services businesses including mutual funds, fell 5% to close at Rs 95 on Monday.