In a major blow to its revival plans, the Srei Infrastructure Finance, CEO Rakesh Kumar Bhutoria is reported to have resigned even as the company looks to sail through the debt resolution process.
Hit by pandemic, the Kolkata-based NBFC has taken a severe hit on its finances leading to an asset-liability mismatch. The lenders of the company have already taken control of its finances to recover their dues, triggering mass level exits at Srei Group, as salary delays became a routine, and remunerations of the top-level executives have capped at Rs 50 lakh per annum.
“CEO Rakesh Kumar Bhutoria has resigned from Srei (SIFL). These top-level employees are now exploring the option of taking legal recourse for release of their salary arrears, which has been held by banks controlling the TRA (Trust and Retention Account),” top company sources said.
Even as Bhutoria’s last working day is yet to be decided, the sources said the company has appointed a headhunter to scout for a suitable candidate for the new CEO. “The headhunter has shortlisted a list of potential candidates, and they have even met the board of the company, as part of the interview procedure,” company sources said.
Earlier the chief operating officer (COO) of the company’s fully-owned subsidiary Srei Equipment Finance Ltd (SEFL) resigned in April. The company secretaries of SIFL and SEFL had resigned in March and May, respectively.