Anand Vardhan is Group General Counsel, Piramal Enterprises Limited, and was recently recognised in the ‘LawWiser General Counsels – Hall of Fame’ (Mumbai Chapter)

Previously viewed as a department solely focused on expenses, legal teams have undergone a significant shift. What are the key factors that have propelled legal teams from a cost centre to a strategic partner within organisations?

It’s a natural evolution, given the overall change in business and market dynamics wherein organisations are benefitting from a growing economy and the complexity in terms of laws etc have also evolved. Lawyers are required to take proactive approaches and abet in sustainable growth of their organsiations, while maintaining a hawk eye on legal and reputational integrity of their organisation.

Can you share a specific instance where your legal expertise significantly influenced a crucial business decision, and what was the outcome of that decision for the company?

In one of our significant real estate deal, legal insisted on takeover of secured units against debt appropriation in order to ring fence the ready inventory from project insolvency and claims by other lenders. This decision proved to be timely as the value of the secured units today completely under lender’s ownership has enabled us to drive resolution discussion with all stakeholders.

Throughout your career, you have undoubtedly interacted with numerous influential individuals. Can you highlight a particularly memorable or impactful interaction that has shaped your approach to your role as a general counsel?

Various interactions with Mr. Ajay Piramal, Group Chairman have shaped my thinking over the years. While instances are numerous, his ability to evaluate complex issues and retain focus on the big picture objective and ability to synergise different view points into a coherent strategy has in turn influenced me in how one thinks about evaluating issues (without losing sight of the larger goal).

With the increasing complexity of regulations and compliance requirements, how do you ensure that your legal team stays ahead of the curve and effectively manages the legal risks for your organisation?

The team has the benefit of working across a plethora of law firms pan India basis and given the myriad matters we work across various verticals, we are constantly engaged with counsels and other market participants. Having ear on the ground enables us to anticipate potential problems and take pre-emptive measures. We follow a flat and integrated structure which helps in effective collaboration/knowledge sharing on daily basis.

In today’s global business environment, cross-border transactions and international collaborations are common. Can you discuss a major international project or joint venture you were involved in and the legal challenges you faced and overcame during that process?

Setting up an MTN (medium term note) Program in PCHFL for USD 1 billion under Reg S Scheme. Internal Treasury Legal managed the entire due diligence and international documentation such as the dealer agreement, trust deed, security and various other deal nuances associated with the issuance.

USD Syndicated Social Loan of $100 million, under the ECB guidelines of the RBI. The proceeds will be dedicated to funding and supporting impactful social projects, driving meaningful change in communities. The loan has a maturity of three years and is benchmarked to a three-month SOFR (secured overnight financing rate). The financing is a secured term loan that will be used for lending in affordable housing, MSME business loans, priority sector loans, microfinance loans, and other eligible products in accordance with the Sustainable Finance framework.