Rating agency ICRA, an affiliate of Moody's, has terminated the services of its Managing Director and Chief Executive Officer Naresh Takkar. He was facing an enquiry into allegations related to the IL&FS case.
"The Board of Directors of ICRA Limited, at a meeting today, after due consideration and taking into account the best interests of the Company and its various stakeholders, has decided to terminate the employment of Mr Naresh Takkar as Managing Director and Group CEO of ICRA, effective immediately. The ICRA Board will commence a search for a replacement," the rating agency said in a stock exchange filing.
ICRA stated that it will begin searching for Takkar's replacement. Vipul Agarwal, who was appointed as the interim COO on July 1, 2019, remains responsible for the day-to-day operation of the Company until a CEO is appointed.
"ICRA remains committed to ensuring the independence and integrity of its rating process and sound corporate governance," the rating agency stated.
ICRA had asked Takkar to go on indefinite leave in July earlier this year pending an enquiry into allegations against him. The step was taken after an anonymous complaint alleged that there were lapses when ICRA assigned a high rating of AAA to IL&FS last year. The complainant had alleged that ICRA's top executives meddled in assigning high ratings to IL&FS and its subsidiaries.
Takkar had been at the helm of ICRA for long and was also recently appointed by the Reserve Bank as a member of its committee on the development of housing finance securitisation market, which is chaired by Bain & Co's Harsh Vardhan.