KRBL shares plunge as independent director alleges ‘misgovernance’
KRBL informed the stock exchange on September 13 about the resignation of Chaudhary and also had shared his letter addressed to the Directors
Shares of one of India’s leading basmati rice exporter KRBL fell by 9.6 per cent on the Bombay Stock Exchange (BSE) on Monday after independent director Anil Kumar Chaudhary resigned from the board.
Chaudhary quit on September 8 and in the letter announcing his exit, he said prevailing dynamics of the KRBL Board “are inconsistent with the principles of effective governance and truly independent oversight” which are essential ingredients for safeguarding stakeholder interests.
He alleged inconsistencies in the recording of minutes of the Board and Committee meetings, instances of information being withheld, impacting informed decision-making, unjust write-off of certain export receivables without adequate deliberation, concerns regarding the use of CSR funds, arbitrary distribution of Variable Pay and Annual Increments to persons holding office or place of profit, significant changes to the “Object Clause” without comprehensive discussion and undue interference by the invitees in the proceedings of the Board and Committee meetings.
KRBL, which sells basmati rice under the India Gate brand, said it will appoint an independent agency of repute “very soon” to look into the issues raised by Chaudhary. The agency will submit a report after auditing the company’s financial and other matters and submit a report within 30 days, latest by October 14.
“The Board met today and the observations (made by Chaudhary in his resignation letter) were discussed in detail at the meeting as well as separately with Independent Directors,” Anil Kumar Mittal, Chairman and managing director of KRBL said. It was decided to appoint an independent agency at the meeting. , Mittal said the report would be shared with investors as well as the stock exchange. He denied the allegations made by Chaudhary in his resignation letter, terming them as false.
Desh Raj Dogra, Priyanka Sardana and Surinder Singh are the other three independent directors in KRBL.
The share of KRBL dropped 9.6 per cent to close at ₹401.50 after opening at ₹401.35 on BSE against previous day’s close of ₹444.10. The day’s high was ₹413.25 and lowest was ₹387.05 on Monday.
KRBL informed the stock exchange on September 13 about the resignation of Chaudhary and also had shared his letter addressed to the Directors. The company has reported export revenue of ₹489 crore in Q1 FY25-26 as against ₹247 crore in year-ago period, up by 98 per cent. Total revenue in Q1 was ₹1,617 crore, up by 32 per cent from year-ago.
Published on September 15, 2025
