Ernst & Young withdraws petition against Ebix

Eraaya Lifespaces has informed exchanges that Ernst & Young (E&Y) has opted to withdraw the petition against Ebix Singapore and the matter has been amicably resolved.

"Although a claim was filed by E&Y, after the Eraaya and Ebix teams engaged with E&Y and presented the true facts about the insolvency proceedings, E&Y opted to withdraw their petition, and the matter has since been amicably resolved. There is currently no pending litigation between Eraaya, Ebix, or any of the group's subsidiaries, and no adverse financial consequences for any of the parties involved and related to this matter," the company said in a regulatory filing on Tuesday.

The company also said that the confusion and complications arising from Robi Raina's actions led E&Y to initiate legal proceedings against Ebix Singapore at the Delhi High Court. 

Eraaya Lifespaces said that there is currently no pending litigation between Eraaya, Ebix, or any of the group's subsidiaries. 

Meanwhile, Eraaya Lifespaces has started a comprehensive overhaul and amid this, the board has suspended Robin Raina as the chairman of Ebix. Raina has also been suspended as Chairman and Director of New Delhi-based Eraaya.

Eraaya Lifespaces recently acquired Ebix Inc.

“The board was informed regarding certain financial irregularities committed by Robin Raina pertaining to operations of Ebix, Inc and all its global subsidiaries, and as a measure of good corporate governance practice, the Eraaya board unanimously decided to initiate investigation of the alleged financial irregularities, entrusted the task to High Powered Steering Committee,” Eraaya Lifespaces said in an exchange filing.

The company has also constituted an Advisory Board composed of industry leaders, seasoned professionals and experts.