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Last Updated : Nov 25, 2019 12:45 PM IST | Source: Moneycontrol.com

RBI tells YES Bank to review audit panel chief's "fit and proper" status

The bank received a whistleblower complaint against Agarwal in November 2018 shortly after he was appointed as an independent director on the lender's board.

 
 
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The Reserve Bank of India (RBI) has asked Yes Bank to examine the "fit and proper" status of the lender's audit committee head Uttam Prakash Agarwal, according to a report in Mint.

The central bank's instruction comes after it came to light that Agarwal failed to disclose criminal cases filed against him, the report said.

The bank received a whistleblower complaint against Agarwal in November 2018 shortly after he was appointed as an independent director on the lender's board.

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Moneycontrol could not independently verify the story.

According to RBI norms, directors on the boards on banks are required to disclose criminal proceedings “pending or commenced or resulting in conviction in the past against the director".

Agarwal had contested the Maharashtra assembly polls on a Shiv Sena ticket from the Borivali constituency in 2014.

He had then mentioned criminal cases against him under IPC sections 406, 420, 504 and 34, two of which are charges related to cheating and criminal breach of trust, according to his affidavit.

Agarwal told the board that the charges against him are civil in nature and were dismissed in 2015, the report said.

After Agarwal submitted a fresh declaration to Yes Bank, the lender sought legal advice from Khaitan & Co and a senior retired judge. Both have concluded that Agarwal withheld material information before he was appointed, the Mint report said.

Agarwal is also a former Chairman of Institute of Chartered Accountants of India.

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First Published on Nov 25, 2019 12:33 pm
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