Hyderabad: The XII Additional Chief Metropolitan Magistrate of Hyderabad City acting on a complaint moved by the Mauritius Commercial Bank has ordered personal appearance of the board of directors of Sujana Universal Industries Ltd including Union Minister, Y.S. Chowdary, now a non-executive director of the company.
The bank has alleged in its complaint that the board of directors had committed various offences under the Indian Penal Code.
Court told Directors not in India
The complaint includes cheating, dishonest or fraudulent removal or concealment of property to prevent distribution among creditors. This was despite the order of the court to disclose the details of all its assets including details of all bank accounts, through an affidavit.
The bank further alleged that this was done as a deliberate attempt to defeat the legitimate claims of the bank, which is pursuing the execution of a United Kingdom High Court Order against Sujana Industries.
The bank submitted that the company stood as guarantor for a loan availed for Mauritius based Hestia Holdings Ltd which is its subsidiary and the company has to repay Rs 106 crore to it.
Earlier, the court issued summons to the board directors to appear before the court on March 5. When the case came up for hearing on Saturday, counsel appearing for the board of directors G. Srinivasa Raju and the Union minister submitted to the court that both directors were out of the country.
According to Sanjeev Kumar, counsel for the Mauritius Commercial Bank, the magistrate while adjourning the case to March 22 ordered that the directors be personally present before the court on the day.
