The managerial churn in Spandana Sporty following a public spat between the private equity firm and the promoter is getting vocal with IndusInd denying that the two top executives appointed by Spandana were false. IndusInd said that the announcement regarding appointment of CEO was not correct as Shalabh Saxena So far India has not resigned from financial inclusion.

According to an exchange filing by IndusInd, Shalabh Saxena and Ashish Damani Presently working in Bharat Financial Inclusion Limited, a wholly owned subsidiary of the Bank (BFIL), as Managing Director and Chief Executive Officer and as Executive Director and Chief Financial Officer respectively.

“Neither Mr. Shalabh Saxena nor Mr. Ashish Damani have resigned from the services of BFIL,” the statement said. “As per the terms of their employment, once they resign, it is subject to acceptance by the Board of Directors of BFIL (Board). On acceptance by the Board, a specified notice period is also required to be served. However, since they have Since no one has tendered his resignation to BFIL, such due process has not been initiated.”

IndusInd’s rebuttal comes a day after Spandana announced that Saxena and Damani had been appointed as MD and CFO respectively.

IndusInd also said that it cannot relieve Saxena and Damani from their roles in India’s financial inclusion until the ongoing review of the bank’s microfinance business is completed.

IndusInd said, “Certain transactions relating to BFIL are the subject of an on-going review and the continued employment of Mr. Shalabh Saxena and Mr. Ashish Damani at BFIL is critical to closing such process.” “Accordingly, till the completion of the said review, he cannot be relieved from the services of BFIL.”

IndusInd said that both Saxena and Damani are prohibited from accepting employment in a competitor of BFIL, unless approved in writing by the Board of BFIL. Any such move would be in violation of his terms of employment with BFIL, the statement said.

Both the microfinance institutions have faced their own problems. IndusInd recently faced allegations from whistleblowers of evergreening of debt at Bharat Financial. According to the allegations, 84,000 new loan accounts were created without adequate customer consent due to technical glitches.

While Spandana is engaged in a fight with the founder Padmaja Reddy, who resigned recently, alleging that he was ousted by Kedara Capital.