Chennai: Everonn Education chairman J J Irani has resigned from the board of directors, the company said on Friday. This follows the arrest of the company’s CEO, Mr P. Kishore, on Tuesday by the Central Bureau of Investigation for allegedly bribing an Income-Tax officer.
A company filing with the BSE said, “The board took note of Jamshed J Irani’s resignation as chairman of the company and accepted the same whilst appreciating his valuable services and guidance.”
It also said that “The board of directors met on September 01, 2011, to review the extraordinary situation arising out of the managing director P Kishore having been taken into judicial custody. The board took stock of the situation and appointed Susha John, wholetime director as the CEO to exercise the powers delegated to the managing director.”
Dr Irani, former Managing Director of Tata Steel Ltd, was appointed additional director and non-executive Chairman of Everonn on December 9, 2010.
Kishore was arrested by the Central Bureau of Investigation (CBI) on Monday night. Along with Kishore, a senior income tax official was also held.
The CBI said Kishore was arrested when he was paying a bribe of Rs 50 lakh to Andasu Ravinder, an additional commissioner of Income Tax Department after the pair clinched a deal to hold back profits of Rs 116 crore, which was not reflected in the books of the company. The company earned revenues of Rs 301.6 crore and a net profit of Rs 72.9 crore for the fiscal ended March 2011.
The stock of Everonn was hammered 20% on exchanges. The counter closed at a fresh 52-week low of Rs 351.4 at the BSE with a loss of Rs 87.85.