From Toxic Air to Broken Roads: Corporate India's Breaking Point with Failed Urban Governance
Moneylife Digital Team 29 December 2025
Delhi's air pollution crisis has claimed an extraordinary professional casualty, marking what appears to be the first publicly documented case of a senior executive at a listed Indian company resigning primarily due to environmental conditions. Rajkumar Bafna, president of finance at pharmaceutical major Akums Drugs and Pharmaceuticals Ltd (Akums), has stepped down from his position, citing the capital's toxic air as the sole reason—a decision that underscores how hazardous pollution levels are no longer just a public health concern, but a decisive factor shaping careers and corporate leadership choices.
 
A Brief Email That Spoke Volumes
Mr Bafna, who had worked with Akums for decades and stepped into senior management roles just three to four months earlier in August 2025, submitted his resignation through a terse internal email dated 3rd December, addressed to chief financial officer (CFO) Sumeet Sood. The compactness of his message reflected the urgency of his decision:
 
"I would like to inform you that due to Delhi pollution level I am resigning from my position as President Finance. Kindly relieve me asap. If I can be any help during this transition Pls let me know."
 
The company accepted the resignation and agreed to relieve Mr Bafna with effect from 31 December 2025. In his response, CFO Sood acknowledged the health concerns driving the decision: "Though we regret your decision however given your health issue we will not be able to persuade you. As desired we will formally relieve you on 31st December 2025."
 
Akums formally acknowledged the resignation on 12 December through regulatory filings to the Bombay Stock Exchange and National Stock Exchange, though the company cited 'personal reasons' in its public disclosures. The internal correspondence, however, revealed the stark reality: pollution had made staying untenable for the senior finance executive.
 
A Company That Serves India's Pharmaceutical Giants
The resignation is particularly significant given Akums' stature in India's pharmaceuticals sector. The Delhi-based company is one of the country's leading third-party drug manufacturers, producing formulations for 26 of the 30 top pharmaceuticals companies in India, including major players like Sun Pharmaceuticals, Cipla and Dr. Reddy's Laboratories, according to its annual reports.
 
Mr Bafna's departure raises critical questions about talent retention at a company serving such vital national health interests, and whether other senior professionals might follow suit if conditions don't improve.
 
A City Choking on Toxic Air
The resignation comes amid one of Delhi's worst pollution episodes on record. The capital's air quality has deteriorated sharply this winter, with real-time monitoring stations recording air quality index (AQI) levels that frequently enter the 'severe' and 'hazardous' categories.
 
On 28th December, Delhi recorded overall AQI readings between 391 and 401, placing much of the capital in very poor to severe pollution categories. Neighboring areas fared even worse—Noida registered levels between 419 and 434, while Greater Noida and Ghaziabad recorded readings of 414 to 445. Hotspots like Knowledge Park V and Loni exceeded AQI 450, signalling critical public health hazards.
 
The crisis deepened dramatically in mid-December when several monitoring stations hit the maximum measurable AQI of 500 or came close, marking some of the worst air quality days in Delhi's recorded history. 
 
On 22 December, according to the Delhi Pollution Control Committee, PM2.5 concentrations reached a staggering 526 micrograms per cubic meter—approximately nine times the standard limit of 60 micrograms per cubic meter and more than 30 times the World Health Organisation's recommended annual average of 15 micrograms per cubic meter.
 
Dense fog and cold conditions have created winter inversion layers that trap fine particulate matter near the surface. Pollutants from vehicular emissions, industrial activity and stubble burning in neighboring states remain trapped with little wind to disperse them. Meteorological advisories warn these conditions will likely persist into early January, keeping exposure risks dangerously elevated.
 
Health experts caution that prolonged exposure to such fine particulate matter can penetrate deep into the lungs and bloodstream, aggravating respiratory and cardiovascular diseases. 
 
Authorities have enforced Stage IV of the graded response action plan, halting construction activity, restricting non-essential vehicles, and mandating work-from-home arrangements for many offices—though these measures were lifted even while overall pollution remained high, drawing criticism from environmental advocates.
 
Part of a Growing 'Pollution Exodus'
Mr Bafna's resignation reflects a wider pattern that many now describe as a 'pollution exodus' or 'smog refugee' trend from Delhi-NCR. An increasing number of people living in Delhi are considering relocating to different parts of India as the city's air has made it feel uninhabitable.
 
Professionals in the technology and corporate sectors have increasingly spoken of cutting short visits to Delhi or permanently shifting bases due to persistent respiratory issues, eye irritation, chronic fatigue, and concerns about long-term health impacts. Several companies, including multinational firms, have reinstated work-from-home arrangements during peak pollution periods, acknowledging that asking employees to commute through toxic air is becoming untenable.
 
While relocation remains an option largely available to the affluent and professionally mobile, millions of lower-income residents—street vendors, daily wage workers, construction labourers, and service workers—continue to endure the worst effects of toxic air with little choice or protection, creating a stark environmental justice divide.
 
Corporate and Economic Implications
Akums has not yet announced a successor to Mr Bafna, and his departure raises broader questions about talent retention in heavily polluted urban centres.  The resignation also highlights an uncomfortable reality for India's corporate sector: governance failures around air quality are no longer externalities that can be ignored. They directly impact human capital decisions, operational costs and potentially even company valuations if key personnel cannot be retained.
 
For Akums, losing a finance chief with decades of institutional knowledge just months after he stepped into senior leadership represents not just a personnel challenge but a signal that environmental conditions have become business-critical factors.
 
Bengaluru: A Different Crisis, Same Corporate Frustration
Bengaluru is facing a deepening governance and infrastructure crisis that is beginning to mirror Delhi’s pollution emergency in its impact on corporate decision-making. The issue came into sharp focus in mid-September 2025 when Rajesh Yabaji, chief executive officer (CEO) of BlackBuck Ltd, publicly expressed frustration over deteriorating conditions on the Outer Ring Road (ORR) at Bellandur, where the digital trucking platform has been headquartered since 2016. In an emotionally charged social media post, he wrote: “ORR (Bellandur) has been our ‘office + home’ for the last 9 years. But it’s now very-very hard to continue here.  We have decided to move out.”
 
Mr Yabaji pointed to daily operational challenges faced by employees, with commute times stretching beyond 1.5 hours each way due to pothole-ridden roads, dust pollution, chronic congestion, and prolonged infrastructure work. For a logistics-focused technology company that optimises trucking routes across India, the inability to ensure reliable employee access to its own office highlighted the irony and severity of the situation.
 
Amid speculation that BlackBuck was planning to leave Bengaluru altogether, the company issued a clarification the following day, stressing its continued commitment to the city. It stated: “We fully understand what the city of Bengaluru has helped us achieve and how it will be playing a major role in unlocking our potential ahead. Hence, we unilaterally refute the claims made by some media outlets that we are considering moving out of the city.” 
 
BlackBuck clarified that the move was limited to relocating offices within Bengaluru to ease employee commutes, while maintaining a significant presence on the ORR. It further added: “We will not only continue to remain in the city of Bengaluru, but will also expand our footprint here.”
 
The episode resonated across the technology ecosystem. Mohandas Pai, former chief financial officer (CFO) of Infosys, warned that persistent governance failures could erode Bengaluru’s status as India’s technology hub, stating, “Even an optimist like me is losing hope.”
 
The situation also prompted public overtures from other states, with Andhra Pradesh information technology minister Nara Lokesh inviting BlackBuck to Vizag, citing cleaner surroundings, improved infrastructure, and better livability.
 
While Karnataka’s urban development authorities ordered inspections and repairs along the ORR stretch, the controversy underscored long-standing coordination gaps between civic agencies. A 2025 study estimated that traffic congestion alone costs Bengaluru’s economy billions annually in lost productivity, fuel wastage, and higher logistics costs, reinforcing concerns that deteriorating urban infrastructure is increasingly shaping corporate location, talent retention and investment decisions.
 
A Stark Wake-up Call
As Delhi heads into another smog-choked New Year and Bengaluru's roads continue to deteriorate, the resignations and relocations of Rajkumar Bafna and BlackBuck stand as stark reminders that governance failures are no longer abstract policy concerns—they are forcing concrete, costly decisions at the highest levels of corporate India.
 
For the countless residents quietly reassessing their future in these cities—whether senior executives with options or daily wage workers with none—the question is becoming increasingly unavoidable: is staying worth the cost? And for policy-makers, the message is clear: governance failures around basic livability are no longer just humanitarian concerns but economic imperatives that will determine which cities thrive and which watch their talent, businesses and futures drift away.
 
Bafna's brief resignation email and Yabaji's frustrated social media post may have been just a few sentences long, but they speak volumes about cities—and a country—at a crossroads. When the air becomes unbreathable and the roads impassable, even the strongest corporate commitments and deepest local roots cannot hold. The question now is whether India's governance systems can reform fast enough to reverse the exodus before it becomes irreversible.
Comments
Lessons from the Past 144: New Thinking - Retraining for Success!
Walter Vieira, 26 December 2025
The media today is filled with news about artificial intelligence (AI). Newspapers have not just columns on AI but full pages, sometimes two full pages on the same day.  These are on AI and various aspects of learning AI and applying...
Govt Orders Blanket Ban on New Mining Across Aravallis, Expands Protected Zones
Moneylife Digital Team 26 December 2025
In a sweeping move aimed at long-term ecological conservation, the Union ministry of environment, forest and climate change (MoEF&CC) has directed all concerned States to impose a complete ban on the grant of any new mining leases...
Aravalli Mining Row: Jairam Ramesh Challenges Govt’s Numbers
Moneylife Digital Team 23 December 2025
Senior Congress leader Jairam Ramesh on Tuesday stepped up his attack on the Union government’s position on mining in the Aravalli range, saying recent clarifications by environment minister Bhupendra Yadav raise 'even more questions...
Delhi Court Charges Karti Chidambaram in Chinese Visa Scam Case for Criminal Conspiracy, Bribing Public Servant
Prashant Jha (Bar  and  Bench) 23 December 2025
A Delhi court on Tuesday charged Congress Member of Parliament Karti Chidambaram with the offences of criminal conspiracy and bribing a public servant in the alleged Chinese Visa scam case.    Special Judge (PC Act) Dig Vinay Singh...
Free Helpline
Legal Credit
Feedback