Amid regulatory probe, PTC India Financial CFO withdraws resignation

PFS is searching for a new Managing Director and Chief Executive Officer due to increased regulatory scrutiny after an unsuccessful attempt to appoint a new one in 2023.

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26 Aug, 2025 12:21

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PTC India Financial Service (PFS), on March 15, announced to the stock exchange that Mahendra Lodha, their CFO, has withdrawn his resignation. PFS has been facing regulatory scrutiny over corporate governance issues and mismanagement. Lodha, who joined PFS as Director (Finance) in June 2020, was given the additional charge of MD and CEO after the previous CEO, Pawan Singh, stepped down following a Reserve Bank of India (RBI) directive.

Moneycontrol reported on March 14 that PFS is searching for a new Managing Director and Chief Executive Officer due to increased regulatory scrutiny after an unsuccessful attempt to appoint a new one in 2023. The article also mentioned that the company was attempting to keep Lodha on board beyond his scheduled departure date of March 15. At the time, the company did not confirm this, but they informed the stock exchanges later that evening.

“The Board has noted the withdrawal of his resignation in its meeting held on 14th March 2024. Sh. Mahendra Lodha will continue as Director (Finance) and CFO. He will have an additional charge of MD & CEO till new incumbent joins,” PFS said in the statement to the exchanges.

PFS is facing allegations relating to corporate governance issues and mismanagement which are being investigated by the Securities and Exchange Board of India and the Reserve Bank of India. In January 2022, three independent directors of the company resigned citing corporate governance issues.

In May last year, SEBI sent a notice to PFS Chairman Rajib Kumar Mishra and MD and CEO Singh, referring to them as the “steering wheel” in the company and holding them responsible for the failure of corporate governance. Later in June, the Registrar of Companies said that it found PFS and Singh in violation of the Companies Act, 2013, and penalised both in three separate adjudication orders. In the same month, Singh stepped down after RBI’s direction. Mishra continues to be the Chairman of PFS and Chairman and Managing Director of the parent company PTC India.

Sources in the company allegedly, Mishra has been influencing the hiring for the top job at PFS just as he, along with Singh was alleged of blocking the hiring of another key personnel in the past.

PTC India Financial Services under regulatory scanner - A brief history

In October 2023, the board had given an in-principle approval to a candidate but he withdrew after engaging with the company for five months due to delays and alleged interference by the current management.

Before this, in 2022, when PFS’ independent directors quit, they had said that MD and CEO Singh had blocked the onboarding of Ratnesh, an NTPC executive who was appointed by the board as Director (Finance) and CFO in July 2021. Ratnesh went back to his parent organisation, NTPC, in December 2021, and it was alleged that Mishra and Singh had together ensured that he did not join PFS.

The company has again started the hunt for an MD and CEO and the last date for application is March 15.