The notices pertain to non-compliance with certain provisions of the Listing Regulations related to the composition of the Board of Directors and its Committees. As a consequence of this non-compliance, both stock exchanges have imposed a fine of ₹14,19,540 (inclusive of GST) each on the company.
In its submission, IREDA clarifies its status as a Government Company. It states that according to its Articles of Association, the power to appoint Directors to its Board is vested with the President of India, acting through its administrative Ministry, the Ministry of New and Renewable Energy (MNRE), Government of India. The company asserts it has no role in the appointment process of Directors.
The matter of the imposed fines and the underlying non-compliance is being placed before the company's Board of Directors for review. Furthermore, the disclosure states that the company has been consistently pursuing the matter with MNRE for the appointment of the requisite number of Independent Directors to ensure future compliance with the Listing Regulations.
The disclosure was signed by Ekta Madan, Company Secretary of Indian Renewable Energy Development Agency Limited.