Mahanagar Telephone Nigam Limited (MTNL) has announced changes to its board of directors, involving the cessation of one Government Nominee Director and the appointment of another. The company disclosed these developments in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015, on January 13, 2026.

Director Cessation and Appointment Details

The board changes involve two key personnel from the Department of Telecommunications (DoT). The cessation and appointment were formalized through official communication from the Ministry of Communications, Department of Telecommunications.

Appointment Terms and Conditions

Sunil Kumar Ranjan's appointment as Government Nominee Director comes with specific terms outlined by the Department of Telecommunications. The appointment is made under Article 66-A of MTNL's Memorandum of Association & Articles of Association.

Regulatory Compliance and Documentation

MTNL's disclosure was made in strict compliance with SEBI regulations, ensuring transparency in corporate governance. The company secretary, Ratan Mani Sumit, signed the disclosure document, which was submitted to both BSE Limited and National Stock Exchange of India Limited.

The official communication from the Department of Telecommunications was signed by Amit Kundan, Under Secretary to the Government of India, and distributed to multiple stakeholders including various government officials and MTNL management. The letter referenced specific government procedures and emphasized the need for necessary action under the Companies Act, 2013.

Corporate Governance Impact

This board change represents routine government oversight in state-owned enterprises, maintaining continuity in government representation on MTNL's board. The seamless transition from one DDG-level officer to another ensures continued government participation in the company's strategic direction and governance framework.

The appointment follows established protocols for government nominee directors in public sector undertakings, reflecting the government's ongoing involvement in MTNL's operations and strategic decisions.

Mahanagar Telephone Nigam Limited (MTNL) has failed to deposit adequate funds in its escrow account maintained at Bank of India, raising concerns about the state-owned telecom company's financial compliance capabilities.

Escrow Account Compliance Issue

The telecommunications company has been unable to meet its obligations regarding the required fund deposits in the designated escrow account at Bank of India. This failure to maintain adequate escrow funding could indicate underlying financial constraints affecting the company's operational capacity.

Potential Implications

The inability to deposit sufficient funds in the escrow account may signal broader liquidity challenges for MTNL. Escrow accounts typically serve specific purposes related to regulatory compliance, debt servicing, or contractual obligations, making adequate funding crucial for maintaining operational and financial credibility.

This development could potentially impact the company's ability to meet various financial commitments and may require immediate attention from management to address the underlying causes of the funding shortfall.