Coal India Ltd (CIL) has sought public apology from the UK-based hedge fund TCI for demanding the removal of its chairman S Narsing Rao. The company plans to file a defamation suit against TCI if it fails to issue an apology.
TCI,a minority stakeholder of Coal India had,on March 5,sent a letter to the CILs directors alleging that Rao was incompetent in protecting CILs net income from erosion by rising diesel and wage costs and general inflationary pressures
If SN Rao is unable to take decisions as CMD for meaningful increases in coal pricing to correct this business failure,then he is not up to the job. He should be immediately replaced with someone who can run CIL professionally, TCI,partner,Mark Berbyshire said in the letter.
Rao said the hedge funds letter has triggered resentment within the management.
So we have decided to serve legal notice to it,demanding a public apology (expected within a fortnight) for seeking the CMDs removal. If it does not apologise,then we are prepared to explore the possibility of filing a defamation suit, Narsing Rao said.
The Childrens Investment Fund Management (TCI) has been accusing the state-run company of not protecting minority shareholders interest and harming the company. The firm reportedly wrote another letter to CIL board of directors expressing concern on the turf war between NTPC and CIL on the fuel supply issue saying,It is extremely bad management to allow such a key customer to become so greatly dissatisfied.