Chennai: A petition has been filed in the Madras high court to restrain the Union government from approving the appointment of R.S. Isabella as managing director of Repco Bank as and when her name is forwarded by the Board of Directors.
Justice R.Mahadevan before whom the petition filed by S.P.Sreenivas, a share holder in Repco Home Finance Limited, a subsidiary of Repco Bank, came up for hearing, adjourned it by two weeks and ordered notice to the Union Ministry of Home Affairs and others.
According to Sreenivas, the managing director shall be appointed by the Board of Directors with the prior approval of Government of India. He shall be the officer in charge of day to day administration. After one R.Varadarajan, who was holding the post of managing director, retired on February 29, 2016, without approval of the Union government and without any appointment order, Isabella was given the post of Managing Director (in charge) by a resolution dated May 10, 2016 in the 194th board meeting, he added.
He alleged that there had been complete mismanagement and irregularities during her tenure as managing director and executive director. Therefore, he sent several complaints to the authorities. But no action was taken. While so, a notification has been issued by the Repco bank dated October 1, 2018 for filling up the post of managing director. The post of managing director was to be filled only by appointment by the board of directors upon approval of Union government. Therefore, in issuing the present notification a plan was hatched to confirm Isabella in the post of managing director, he further alleged.
