Published On: Mon, Jan 17th, 2011

Everonn clarifies on NSDC stake news reports

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Everonn Education Ltd, referring to news reports that National Skills Development Corporation of India (NSDC) has decided not to pick up 27 per cent stake in its 100 per cent subsidiary Everonn Skill Development Ltd (ESDL), has clarified that the company and ESDL both have not received any communication from NSDC.

Earlier it was reported in Times of India on 14th January 2012 that NSDC has decided not to take up the 27% stake in ESDL as part of the agreement it had signed on April 18 2011. This move only affects the equity stake and not the loan amount that NSDC was to extend to Everonn. Under the agreement, NSDC was supposed to give Rs 101.34 crore as loan to ESDL, take up a 27% equity stake at a cost of Rs 14.15 crore and Everonn was to train 15 million workers by 2022. NSDC, however, is now looking to distance itself from the controversy-ridden Everonn, whose founder P Kishore was arrested by the CBI in connection with bribing a tax official and tax evasion . As a first step, NSDC won’t be going ahead with 27% equity stake. A decision on the loan amount will be taken soon, according to sources.