All is not well between Sanjay Kapoor and Micromax after the former exited the company last month. According to an Economic Times report, Sanjay Kapoor was rather asked to step down from the company s Chairman post. The report further said Sanjay Kapoor was facing allegations of misappropriating fuel bills. However, in his resignation letter to the Micromax board, Kapoor had said he would take legal action against the company and its directors. Also Read - 5 delayed smartphone launches in India due to COVID-19 in May 2021Also Read - Micromax In 1 goes on sale in India today on Flipkart: Top 5 features, price of all variants
In his letter dated July 27, Sanjay Kapoor had mentioned about a letter written by Micromax s Rahul Sharma on July 10. The report said Rahul Sharma had terminated Kapoor over misappropriation of fuel bills. However, the latter turned down the allegations stating the company had an arrangement with a fuel station and all bills were furnished to the company, and also no questions were raised when the bills were presented and eventually were cleared. Also Read - Micromax In 1 first impressions: Solid competition for Poco M3
He further accused the company of deliberately terminating him in order to deny him of his stock options. According to reports, Kapoor was promised 1 percent share in Micromax s stock options when he joined the company in June 2014.
“By no stretch of imagination it can be stated that I have misappropriated any amounts as no amounts were paid to me for fuel expenses. There were no cash transactions involved,” he is quoted as saying.
“The valuation of the company has increased due to my efforts. I have successfully got the commitment of huge investment in the company the fruits (of) which the company has already started to reap,” he further said in his resignation letter.
The revelation comes after weeks it was speculated that Sanjay Kapoor had exited the company due to differences with promoters over strategy. Without providing more details, Micromax was quoted as saying: “Appropriate announcements will be made in due course. We would like to thank him for his contribution and wish him luck for all his future endeavors.”
Also, prior to his exit, reports about rift between Kapoor and Micromax had already emerged. Back in April, it was reported that Kapoor had differences with the company over the issue of company s future business strategy. Reports had said that Micromax was planning to sell as much as 25 percent of its stake to Alibaba. It was even reported that as soon as the deal is done, Kapoor may exit the company. However, Micromax had turned down such report stating Kapoor was an integral part of the company .
Sanjay Kapoor had joined Micromax in June 2014. He was assigned to focus new products and drive areas such as data, access, storage, analytics, applications and content. It s notable then Samsung India mobile head Vineet Taneja and senior official at Bharti Airtel Badal Bagri were hired by Micromax around the same time Kapoor had joined.
They were assigned to expand the company s portfolio prior to an Initial Public Offering. However, the plan for IPO was shelved in order to bring strategic investors to boost Micromax s growth, which was said to come from funding by a consortium led by Ant Financial Services Group, which is associated with China’s Alibaba group. Reports also said Micromax was planning to raise about $1 billion from overseas investors, including Japan s SoftBank.
ALSO READ: Here s why Micromax hired Vineet Taneja as CEO.
Prior to Kapoor s termination, investor and a partner at Sequoia Capital Mohit Bhatnagar had also stepped down from Micromax s board. “I am resigning as a nominee director from the board of Micromax Informatics Limited with effect from July 6, 2015, on the instructions of SCI Growth Investments II which I am representing on the board of the company. In view of the above, I am also resigning as a member of the remuneration committee of the board,” Bhatnagar had written in his letter to the board.