ITC files Rs. 1,000 cr defamation suit against IiAS
A Rs. 1,000-crore defamation suit has been filed by ITC against proxy advisory firm IiAS at the Calcutta High Court. ITC alleged that the advisory firm was making 'defamatory' statements against the firm and its directors. ITC in its suit mentioned that IiAS had published two reports, which were "false, defamatory and malicious," on its website www.iiasadvisory.com just before the firm's AGM. Here's more.
What's it all about?
ITC asked the court to issue a "decree for Rs. 1,000 crore against" Institutional Investor Advisory Services (IiAS) and they have also sought a mandatory injunction, which would make IiAS publish an unconditional apology to the firm. Upon query, ITC spokesperson said, "We cannot comment as the matter is sub judice," while IiAS didn't reply back.
What led to this?
IiAS had asked ITC shareholders, in its advisories, to vote against the proposal of paying monthly remuneration of Rs. 1 crore to its Non-executive Chairperson Y.C. Deveshwar. IiAS said, it "believes the board structure, and the proposed remuneration, signal Yogi Deveshwar's continuing control over the company, which undermines the recently appointed CEO Sanjiv Puri. Once Yogi Deveshwar has stepped down, he must let go".