Independent non-executive director on the Board of Bhushan Steel V K Mehrotra has resigned from the company citing "falling health".
This is the first resignation from the 11-member Board of the steel maker after its Vice Chairman and Managing Director was arrested by CBI in an alleged loan-for-bribe scam.
"V K Mehrotra, non-executive director of the company, has resigned from the Board of the company due to falling health," Bhushan Steel said informed the BSE today.
With around 40 years of experience in banking industry, Mehrotra worked with various banks including State Bank of India as Deputy Managing Director.
A consortium of bankers that has around Rs 40,000 crore exposure to the company decided last week to appoint three nominee directors on Bhushan Steel's Board representing the lenders.
They also ordered a forensic audit into the books of account of the company among others cracking a whip on the cash-starved steel maker.