Vikram Akula behind SKS Microfinance-Trust tussle?

The tussle between leading microfinance company SKS Microfinance and its largest shareholder, SKS Trust Advisors Pvt Ltd took a new turn on Thursday, with the former issuing a statement pointing out factual errors in the allegations of irregularities made by the latter about the way the company's annual general meeting (AGM) in Mumbai on December 3 had been conducted.

"As news reports have indicated, a shareholder of SKS Microfinance Ltd (SKS Trust Advisors Private Ltd) has recently questioned the proxies issued (and therefore the votes cast) by some promoters and public shareholders of the company at its AGM... Earlier today, the company responded to the said shareholder pointing out the factual errors in its version and making some basic legal corrections... to curb unnecessary speculation around a complete non-issue, the Company has offered to make these documents available for inspection at its registered office," the statement said.

The standoff between the two is widely seen as a battle between Vikram Akula, the man who founded SKS Microfinance, and its current management. Akula was forced to quit the microfinance company following a series of developments two years ago.

"Through the trust, Akula seems to be trying to make a come back into the company," says a sector insider. "It seems more of an ego issue."

Asked for his reaction Biksham Gujja, Chairman and Managing Director of SKS Trust Advisors, said in an emailed response: "SKS Trust, as the largest shareholder, with 12.6 per cent stake, and the original promoter of SKS Microfinance, had nominated Vikram Akula to be its representative on the Board of the company which has not yet been accepted by them."