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Mr Arun Jain

CHENNAI, Dec. 30

POLARIS Software Lab Ltd plans to write off about $1 million on the Bank Artha Graha-related expenses. This included about $6,60,000 Polaris got from the bank for the order and legal expenses, Mr Arun Jain, Chairman and Managing Director and CEO, Polaris, told reporters after the company's extraordinary general meeting here today.

"Except the $1 million, there is no immediate and long-term effect on the company due to the entire episode," he added.

Meanwhile, the company's board today recommended that it move an arbitration proceeding against Bank Artha Graha in Singapore as specified by the contract for commercial disputes. The board, which met here, also recommended the company to move legally in Indonesian courts to quash any criminal charges under the Indonesian Law, according to a company press release. The board also recommended Polaris to contemplate any other legal action(s) with respect to Bank Artha Graha.

Reviewing the episode involving the detention of Mr Jain and the company's Senior Vice-President, Mr Rajiv Malhotra, the board unanimously agreed that the case was clearly a "commercial dispute" between Bank Artha Graha and Polairs and did not qualify, under any circumstances, as a "criminal dispute," the statement said.

The board also appointed a legal committee to oversee the above actions of Polaris against Bank Artha Graha. Mr Arvind Kumar, Director on the Polaris Board and Supreme Court lawyer, will head this committee.

Mr Arvind Kumar, in the statement, said, "We clearly recognise this to be a commercial dispute only. However, even as we proactively initiate arbitration proceedings to settle the dispute with Bank Artha Graha, we will explore all legal avenues to see what action could be taken against the bank for its unlawful action against our Chairman and another senior executive."

Mr Jain told reporters that Polaris was also doing due diligence of all the small clients (about 12) in developing countries. The company in future would also approach and inform the Indian embassies in the respective developing countries while doing business with small clients (in the range of about $1 million), he added.

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