Vellayan returns as Murugappa Group Chairman

New Delhi: Industrialist A Vellayan has resumed charge as Chairman of the Murugappa Group, five months after "stepping aside" from the post after market regulator Sebi slapped insider trading charges against him.

After an assessment of the status of the ongoing proceedings against alleged insider trading and after considering expert legal advice on the matter, the group Corporate Board requested A Vellayan to resume the chairmanship of the Group Board, Murugappa group said in a statement.

Consequently, Vellayan has accepted the board's request and has resumed charge as Chairman of the Murugappa Corporate Board, it added.

Defending such a step, the statement said: "The Group Corporate Board believes that this action is consistent with the group's values of putting all stakeholder interests first and enables Vellayan to resume the chairmanship of the group to continue providing the requisite strategic direction and leadership for the group's interests."

Earlier in May this year, Vellayan had "stepped aside" as Chairman of the diversified Murugappa Group as also of two group firms, Coromandel International and EID Parry.

Sebi had ordered impounding of Rs 2.15 crore lying in bank accounts of A Vellayan, his relative A R Murugappan and two others (Gopalkrishnan C, V Karuppiah) with immediate effect after finding them guilty in an insider trading case.

While rejecting the charges, the group said Sebi action was based on mere suspicion and Vellayan would take necessary legal action to defend his reputation.