Prudential Sugar Corporation Limited takes on legal recourse over false allegations

At the outset I wish to clarify the Press that the allegations leveled by Mr. Ch. Krishna Murthy against M/s Prudential Sugar Corporation Limited and Mr. Vinod Baid as appeared in Newspaper on Monday the August 29, 2016 are totally false, baseless, frivolous and mischievous. I may also add that I and the Company are taking appropriate legal recourse against Mr. Murthy for going to Press with such false statements and damaging our reputation. However, for greater clarity to the Press, I give the following clarifications for your understanding so that the same can be appropriately published in your immediate next edition:

1. That Mr. Ch. Krishna Murthy’s claim that he is a 50% Partner in M/s Prudential Sugar Corporation Limited is blatantly false, incorrect and untenable as the Company is a Public Limited Company Registered under the Companies Act, 1956 having more than 11000 Shareholders. It is to be noted that in a Public Limited Company there cannot and shall not be any Partners as alleged. Mr. Nanda Kumar is fully authorized by the Company to act and make statement on behalf of the Company.

2. That Mr. Ch. Krishna Murthy, contrary to his claim, holds a mere 5.94% of the Shareholding (Fully Paid-up Shares) of the Company, whereas his three other family members together hold 11.19% of Shareholding (Fully Paid-up Shares) in the Company. This is evident from the records available with Bombay Stock Exchange and other Competent Authorities. It is to be noted that Mr. Ch. Krishna Murthy’s claim is not supported by any valid documents to substantiate his 50% Shareholding.

3. That Mr. Ch. Krishna Murthy’s claim that he has invested Rs.40 Crores in M/s Prudential Sugar Corporation Limited is a false statement. Mr. Ch. Krishna Murthy is in the habit of forum-shopping claiming that he has invested Rs. 20 Crores, Rs. 30 Crores, Rs .40 Crores and so on, before the Government Authorities, Courts of Law, Press and also the public at large without any consistency just to gain sympathy and creating false rumors amongst public. Factually, Mr. Ch. Krishna Murthy’ has not invested any amount with the Company, he and his family members have altogether extended only advances to the Company in tune of Rs. 1.02 Cr. and had paid Rs. 10.52 Cr. towards consideration of shares purchased by him as stated in point No. 2 and moreover still there is Rs. 3.13 Cr. receivable from him on account of shares transferred to him and his family members.

4. That his allegation of investing Rs. 50 Crores in the Sree Venketeshwara Sugar Industries Pvt. Limited is absolutely false and baseless, he invested only Rs. 1.22 Cr. equal to the amount which I invested with the Company and authenticity of the same may be vouched with the audited balance sheet of the Company.

5. That during Mr. Ch. Krishna Murthy’s tenure as Managing Director of the Company from December 11, 2008 to May 13, 2013, all financial transactions were vouched and approved by him, as such, there is no question of siphoning of funds and I categorically deny any such kind of allegations.

6. That Company has been operating legitimately and is fully law compliant and there are no irregularities as alleged at all and all the workers, farmers, suppliers, vendors, etc. are absolutely happy and supportive and the Company has been carrying out numerous development and social works for the community benefits and for the welfare of the people in and around factory, from time to time.

7. It is to be noted that no Court of Law has given any “right of entry” as 50% Partner to Mr. Ch. Krishna Murthy as alleged. It is a fact that there is an Order of the Hon’ble High Court to maintain status quo of Assets and Liabilities of the Company as on 31.03.2015, but it does not confer any right on Mr. Ch. Krishna Murthy to trespass into the factory premises or interfere in the smooth functioning of the Company. However, the Apex Court, on hearing the SLP filed by me and the Company, has extended the compliance period of the Hon’ble High Court’s Order. The matter is sub-judice and hence, it is not proper on my part to draw any conclusions or make any comments like Mr. Ch. Krishna Murthy. Ultimately, the Law of the Land shall prevail and we, as the Citizens of this Country abide by it.

8. The fact which was not disclosed by Mr. Ch. Krishna Murthy to the Press in his exclusive interview is that of a Compromise Meeting held at his instance in Chennai on 28.02.2016 wherein his well wishers, his Auditors, his Brother-in-Law, and me and others had participated to arrive at a compromise for a final settlement to put all legal litigations to rest. The minutes of the same was also signed by Mr. Murthy. However, Mr. Ch. Krishna Murthy, living upto his reputation, has backed-out after signing the Agreement. This document can be made available to the Press.