KRBL shares nosedive 13% as independent director Anil Kumar Chaudhary quits, flags governance issues

Chaudhary had resigned from KRBL’s board last week on September 8, 2025.

“After careful thought and consideration, I have concluded that I am no longer able to meaningfully contribute to the Board's functioning in the manner envisioned under the regulatory framework for independent directors. I believe that effective governance and truly independent oversight are essential ingredients for safeguarding stakeholder interests, and I find the prevailing dynamics of the Board to be inconsistent with these principles,” Anil Kumar Chaudhary said in his resignation letter.

Chaudhury stated that certain issues have persisted and, despite his earnest efforts to address them through constructive dialogue, they continue to pose professional and ethical dilemmas.

Here are the issues flagged by Chaudhary:

• Inconsistencies in the recording of minutes of the board and committee meetings

• Instances of information being withheld, impacting informed decision-making

• Unjust write-off of certain export receivables without adequate deliberation

• Concerns regarding the use of CSR funds

• Arbitrary distribution of variable pay and annual increments to persons holding office or place of profit

• Significant changes to the object clause undertaken without comprehensive discussion

• Undue interference by the invitees in the proceedings of the Board and Committee Meetings

“I have raised these matters whenever appropriate, hoping for resolution in the interest of the company and its stakeholders. In such an operating environment where dissent is suppressed or sidelined, remaining on the Board would compromise both my professional ethics and obligations as defined under Indian corporate governance codes,” he further added.

Following this, shares of KRBL declined on Monday. At 9:55 AM, the rice exporter’s stock was trading at ₹400.30, tanking 9.86%.

In the last five trading sessions, shares of the firm have declined 14.17%, while for the six-month period, the stock has zoomed over 55%. Since the beginning of the year, the stock has gained nearly 33%.

KRBL Limited is one of the world’s largest integrated rice producers and exporters. The company oversees the entire value chain—from seed development and contract farming to processing, branding, and global distribution—emphasising quality, sustainability, and innovation.