Former HDFC Bank chairman Atanu Chakraborty has questioned the need for an external legal review conducted into the circumstances surrounding his resignation, stating that the exercise was unnecessary and that he chose not to participate because the bank did not disclose its scope or legal basis.
Speaking after HDFC Bank announced that an independent investigation had found no evidence supporting the concerns raised in his March resignation letter, Chakraborty said he had repeatedly requested the terms of reference for the review but did not receive any response.
According to a report by Mint, he said that multiple attempts were made to understand the mandate of the inquiry before he decided not to engage with the process. He also said he did not feel the need for external validation of his position.
His comments came a day after India’s largest private-sector lender informed stock exchanges that an independent review conducted by two external law firms had found no supporting evidence for the concerns raised in his resignation.
The review examined board minutes, committee papers, and other relevant documents, along with interactions with independent directors, senior management, and heads of key control functions.
Based on this assessment, the law firms concluded that there was no evidence supporting the issues mentioned in Chakraborty’s resignation letter.
Chakraborty’s sudden departure in March triggered significant attention in India’s banking sector and raised broader governance concerns.
In his resignation letter dated March 17, he had stated that developments and practices within the bank over the previous two years were not aligned with his personal ethical standards and values.
However, he did not provide specific details, which led to uncertainty among investors and market participants.
Following the resignation, the bank initiated an external review to independently assess the situation and clarify governance concerns.
It appointed domestic law firm Wadia Ghandy & Co along with US-based Wilson Sonsini Goodrich & Rosati to carry out the investigation.
HDFC Bank said the objective of the review was to reinforce governance standards and provide the board with an independent and objective assessment of the circumstances surrounding the exit.
The findings have now become a point of disagreement, with Chakraborty disputing both the necessity and the transparency of the process, even as the bank maintains that the investigation validated its governance practices.
