The 114-year old Group is one of India’s biggest business conglomerates with interests in engineering, cycles, auto parts, fertilizers, sugars, insurance and financial services.
Vellayan, a fourth-generation-entrepreneur, had been in the wilderness for five months following SEBI’s charge of insider trading against him in a case relating to the acquisition of Sabero Organic by Coromandel International. He and others were asked to make good a profit of Rs 2.15 crore.
At the time while stepping down his office had said, “In keeping with family values and tradition, he has stepped aside from the chairmanship of the MCB and of Coromandel International and EID Parry India until this matter is resolved."
Vellayan had promised to cooperate with SEBI in resolving the matter. SEBI passed its order based on the analysis of trading patterns between May and June 2011 during which time the scrip soared from Rs 58 to Rs 130. It may be noted that in stepping down from the chairmanship had taken the high moral ground because the MCB was only a non-statutory body.
Now, in end October Vellayan’s office believes that "The SEBI order linking Vellayan, to trades by two individuals is based merely on suspicion and is a far-fetched tenuous conjecture." A statement of the Group said: “the Group Corporate Board has requested Mr. A. Vellayan to resume the chairmanship of the Group Board after an assessment of the status of the ongoing proceedings against alleged insider trading and after considering expert legal advice of Senior Counsel on this matter,”
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, it added.
Consequently, Vellayan has resumed charge as Chairman of MCB.