Philips said that Parekh, who had been serving as non-executive director from 1998, had cited non-availability of time and put in his resignation on February 2. The Philips board accepted Parekh's resignation at a meeting on February 26.

Industry sources said that Parekh resigned to protest Philips' deal with rival Videocon to sell its colour television factory at Salt Lake in Calcutta and the management's behaviour towards its employees and shareholders at the extraordinary general meeting held on December 4 last year. The Videocon deal has since been stayed by the Calcutta high court. Parekh, in a letter dated February 2 to Philips' chairman DN Ghosh, stated that he took this decision after a long hesitation.

"There have been moments of hesitation and regret before I write this letter butcircumstances compel me to do so. As you are aware, my responsibilities over the years have increased manifold. My executive responsibilities at HDFC, as well as my other assignments, my commitments as the chairman of Infrastructure Development Finance Company Ltd and various committees constituted by the Government of India leave me with very little time," Parekh stated. At the stormy EGM on December 4, Parekh had hinted at quitting the post. When the financial institutions forced a poll on the sale resolution, the employee shareholders of Philips urged Parekh not to be party to the goings on and requested him to resign to "protest the high-handedness" of the Philips board.

Parekh, reacting to them in front of The Financial Express, said, "I am seriously considering it." Even when the shareholders were insisting on including their nominee to conduct the polls, against the wishes of the Philips management, Parekh was the only board member seen trying to convince the others to accept the demand.

The HDFCchairman has offered to help Philips "in any measure as may be required in the years ahead".

Philips managing director K Ramachandran, in a press release on Saturday, expressed the company's gratitude towards Parekh. "The company will be indebted for his extremely valuable counsel and guidance over his long tenure with Philips India Ltd. We remain confident that his counsel will be available to us in the future," the release stated.