Board-Level Differences Surface At Vadilal Industries Following Director Resignation

Vadilal Industries has initiated a review of its wage compliance and governance processes following concerns flagged by Independent Director Shivakumar Dega, who has since resigned.

In a regulatory filing, the company disclosed that issues were raised regarding alleged payment of wages below the statutory minimum to factory workers. Dega stated that non-payment of minimum wages constitutes a violation of the Minimum Wages Act, 1948, and the Code on Wages, 2019, and could attract legal consequences under constitutional provisions relating to forced labour.

He also indicated that the financial results and share price may have reflected the impact of the alleged underpayment. In addition, differences were flagged over certain leadership decisions, including the appointment of a Chief Executive Officer (CEO) and the proposal to hire a Chief Operating Officer (COO).

The company said it had already begun assessing compliance with statutory provisions before receiving the resignation. The Board has formed a sub-committee and is appointing independent advisors to examine the matters raised.