MAM Ramaswamy, a well-known industrialist in South India and a horse-racing enthusiast, who once set a record of winning over 300 races, has lost the race to retain the ownership of Chettinad Cement Corporation, the flagship company of Chettinad Group, a business conglomerate with interests ranging from cement to civil
Shareholders of the succession battle-ridden Chettinad Cement have passed a resolution rejecting the reappointment of Ramaswamy, the current chairman, as director. Ramaswamy’s tenure as director expires by rotation. However, on his adopted son MAMR Muthiah’s request, who has been fighting a succession battle, the shareholders have given the nod to appoint him as chairman-emeritus.
The move by shareholders comes on the heels of the CBI arresting Manuneethi Cholan, the registrar of Companies, Chennai, for allegedly receiving a Rs 10- lakh bribe from Ramaswamy. The CBI had also booked Ramaswamy, but did not arrest him because of his old age. He is 84.
The CBI had on Tuesday said it had arrested Manuneethi Cholan for accepting a Rs 10-lakh bribe from Ramaswamy in lieu of declaring Wednesday's AGM proceedings as null
According to the CBI, as there was an attempt by a rival group, headed by Ramaswamy's adopted son MAMR Muthiah, to take control of Chettinadu Cement during the AGM on Wednesday, and Ramaswamy sought the help of RoC to get the move declared as illegal.
According to shareholders, at the Chettinad Cement AGM here, a resolution seeking Ramaswamy's non-appointment as director of the company was moved and passed. Ramaswamy has been the chairman of Chettinad Cement while his adopted son MAMR Muthiah served as its managing director.
With the shareholders rejecting Ramaswamy's reappointment as director, the post of chairman at Chettinad Cement would become vacant for the time being, a shareholder said.