Charges Against Apollo Chairman May be Unsustainable

The mismanagement allegations made by Narinder Jeet Kanwar against his elder brother, Apollo Tyres chairman Onkar Singh Kanwar, might not be sustainable in Chennai’s Company Law Board (CLB) as the younger brother is not a company shareholder, report both Apollo Tyres and independent legal experts. A spokesperson from the company has stated “Narinder Jeet Kanwar has no stake in the company.” Therefore, it was added, he is not in a position to bring the issue before the CLB.

India’s Business Standard newspaper has quoted the position of a Chennai based company law expert, M R Venkatesh, regarding the matter. “The petitioner or petitioners as a group must hold at least a 10 per cent stake in the company for the CLB to accept the petition. It is not an easy process, unless this 10 per cent stake is held by a person,” said Venkatesh.

Meanwhile, a separate petition is being filed with the CLB in Chennai, this time presented by the All India Tyre Dealers Federation (AITDF), who allege that Apollo’s management have engaged in trade malpractices. According a member of the federation, however, the AITDF petition is not intended as a gesture of support for Narinder Jeet Kanwar. The AITDF, says the member, is “merely using the opportunity to enable the CLB hear our woes too.” The federation claims that Apollo Tyres is favouring particular dealers over others by directing about 25 to 30 per cent of its business towards a particular 200 to 300 dealers from its nationwide network of 4,500 dealers