More exits at Ernst & Young

The exit of former Arthur Andersen partners, who had joined Ernst & Young (E&Y) India as part of the 2002 merger between the two firms, cont...

The exit of former Arthur Andersen partners, who had joined Ernst & Young (E&Y) India as part of the 2002 merger between the two firms, continues. The latest is Rajiv Dimri, national head of indirect tax practice, who has also indicated his intention to move on. E&Y India’s chairman Jairaj Purandare’s name also figures in the list.

Dimri’s decision to quit comes barely two weeks after his senior, Mukesh Butani, national head of tax practice, put in his papers. He joins two other senior partners, Sanjay Mehta and Lalit Ahluwalia.

When contacted, Purandare initially said, ‘‘I have not resigned. You will get to know once I do.’’ A few hours later, however, he said that ‘‘he was not resigning’’. An E&Y India spokesperson said, ‘‘There is nothing at this point of time. We will tell you as and when something happens’’.

Dimri was not available for comment.

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However, sources said both Dimri and Purandare have informed the top management, including chief executive officer Rajiv Memani, of their intention to move on. Purandare was elevated as chairman of E&Y India in April this year after the retirement of K.N. Memani, former chairman, E&Y India.

It is learnt that a top executive from E&Y worldwide is expected to be in India soon to take stock of the developments at the consulting firm. Sources confirmed that Memani has been in touch with some of the partners who want to quit the firm, in an effort to persuade them to stay on.

It is believed that the E&Y management has zeroed in on Gaurav Taneja, also a former Arthur Andersen partner, as Butani’s successor to head the national head of tax practice.

The last five or six resignations have all been submitted by former Arthur Andersen partners. The first to go was E&Y India CEO Bobby Parikh last year. Issues pertaining to corporate culture between Aurthur Andersen and E&Y India after the merger and the elevation of Memani’s son, Rajiv Memani, as CEO are believed to be some of the contentious factors.