Shares of KRBL, one of India’s leading basmati rice exporters, plummeted by 9.6 percent on the Bombay Stock Exchange (BSE) on Monday following the resignation of independent director Anil Kumar Chaudhary from the board.
Chaudhary announced his resignation on September 8, citing that the current dynamics of the KRBL Board “are inconsistent with the principles of effective governance and truly independent oversight,” which he deemed essential for safeguarding stakeholder interests. In his letter, he raised several issues, including inconsistencies in recording minutes from Board and Committee meetings, withheld information that hampers informed decision-making, unjust write-offs of export receivables, concerns over the use of Corporate Social Responsibility (CSR) funds, arbitrary distribution of Variable Pay and Annual Increments to certain officials, significant changes to the “Object Clause” without thorough discussion, and undue interference by invitees during Board and Committee meetings.
In response, KRBL, which markets basmati rice under the India Gate brand, stated it would appoint a reputable independent agency to investigate the issues Chaudhary raised. This agency is expected to submit a report on the company’s financial and other matters within 30 days, with a deadline set for October 14.
Anil Kumar Mittal, Chairman and Managing Director of KRBL, confirmed that the Board discussed Chaudhary’s resignation letter in detail during their latest meeting and decided to appoint an independent agency to address the observations made. He refuted the allegations stated in the resignation letter, labeling them false.
Aside from Chaudhary, the board comprises three other independent directors: Desh Raj Dogra, Priyanka Sardana, and Surinder Singh.
On the stock market, KRBL’s share price fell to ₹401.50, after starting the day at ₹401.35, down from the previous closing price of ₹444.10. The day’s trading range saw a high of ₹413.25 and a low of ₹387.05.
KRBL informed the stock exchange on September 13 regarding Chaudhary’s resignation and shared his letter addressed to the Directors. The company reported an export revenue of ₹489 crore in Q1 FY 2025-26 compared to ₹247 crore in the same period the previous year, marking a 98 percent increase. Total revenue in Q1 reached ₹1,617 crore, showing a 32 percent rise from the previous year.
Published on September 15, 2025.
