Ex-company secy levels charges against Kanorias.

Viom Networks, a venture between Tata Teleservices and Srei Group enterprise Quippo, has run into a cloud of controversy over charges of financial irregularities.

The company has appointed KPMG to assess the extent of the graft, if any, after a former company secretary alleged that the Kanorias of the Srei Group diverted funds to the tune of Rs 300 crore to some private institutions.

In 2009, the tower businesses of Tata Teleservices and Quippo were merged to form Tata Quippo, which was subsequently named Viom Networks. Initially, Tata had 51 per cent stake and Srei the balance. The stake of Srei has subsequently come down to about 18 per cent, but they still have management control over the company.

According to a contract between the two partners, the Srei Group will continue to have management rights till it has 12 per cent stake in the venture.

When contacted, Hemant Kanoria, chairman and managing director of Srei Infrastructure, said the company secretary was fired on

July 25, following which he made certain allegations. "Since the company has a whistle-blower policy and shareholders maintain higher standards of corporate governance, it was decided to appoint an independent auditor for a probe."

According to people close to the development, KPMG has already started looking into the issue.

In a late evening statement, Viom said the shareholders, board and management of Viom Networks were committed to the highest standards of corporate governance and the action reflected that philosophy.

Viom has more than 38,500 towers and around 95,000 tenancies. The company plans to roll out nearly 20,000-25,000 additional towers in the next two years. According to the company's website, Viom is the strongest player in neutral host shared in-building communication solutions, with installations already completed at most of the major airports.