When Mr. Narayan Murthy raised concerns about Corporate Governance which resulted in the resignation of the CEO & other Board members, he was acting not as founder but to use his own words “ an average Joe”
The present case is -- Polo Hotels Ltd. CA Arun Goenka has taken up the cudgels on behalf of the shareholders of Polo Hotels Ltd. Investors meet is being organised at many cities—Mumbai, Delhi, Kolkata, Bangalore, Chandigarh etc.
This is one of the most unique case . The Acquirers/ Promoters have been dodging their responsibility for past 18 years to come out with an Open offer. The case has travelled all possible levels and stages of Justice delivery system - CLB, High Court, Takeover panel, SEBI Chairman, SAT and Supreme Court. In Supreme Court, they lost not once, not twice but 3 times- Appeal, Review and the Curative Petition. The last Supreme Court order is dated 2 March 2017 . They had to bring the offer around 17 April 2017, yet there is no sign of the Offer. It seems that the acquirers/promoters want to start the cycle of appeals and review petitions all over again and want to spend their and most of the investors’ lifetime in such appeals.
The Securities Appellate Tribunal (SAT) could see through their evil design and reprimanded them and placed a penalty of 50,000/- on them. The operative part of SAT order dated 29 August 2017 is reproduced below:
“5. In our opinion the present appeal is filed in gross abuse of the process of law
merely with a view to delay implementation of the order of SEBI dated 1.8.2003
….
6. In these circumstances, we grant extension of time for a further period of four
weeks for compliance of the order of SEBI dated 1.8.2003 subject to payment of
costs quantified at Rs.50,000/- to be paid by the appellant to SEBI within a period of 2 weeks from today”
Besides the above the company is thoroughly mismanaged. On an Asset size of about 135 Crores, revenue is not even 2%. For the whole year ended 31 March 2017 total income is shown as Rs.1.78 Crs. CA Arun Goenka initiated a move to oust such an inefficient and corrupt management and their collaborative auditors. There is no transparent accounting for Rs. 74.91 Crs. Parked under the head “ Capital work in progress”. Special Notices under Section 169 & 140 (4) of the Companies Act, 2013 for removal of some directors and appointment of Auditors respectively has already been served on the company.
The original complainant and many other shareholders have died or become too old. Some active shareholders under the guidance of Arun Goenka have decided to FIGHT for the RIGHT of such and other shareholders.
CA Arun Goenka is a shareholder activist and his efforts has been appreciated by WIRC-ICAI who has awarded him for such social service. He has also been featured by The Economic times. Mr. Goenka is following up with all concerned authorities , very vigorously . He is confident that the Acquirers/Promoters have no place to hide now and will have to come out with an Open offer wherein all the Shareholders will get a per share Rs. 23.75 Plus interest @ 15% p.a. for the past 18 Years. Roughly the about Rs. 90 per share.
To educate all the investors in the company, a series of investors’ meet has been planned all over the country. For the purpose a core team of knowledgeable investors has been formed. Investors are advised to please contact us on: It will be appreciated if a mail is sent to polohotelsprotest@gmail.com or whatsapp on 093230 91348
Please give the following details:
(a) Name of holder, (b) Folio No. (c) No. of shares held, (d) PAN No.
(e) Proxy—Please sign, scan the form and email and also send by courier to my above address.
Meeting of the Shareholders of the company in Mumbai will be held on 15th September 2017 at
Mumbai 400 059
Upon shareholders’ request, the meeting in any city can be organised/rescheduled.
All shareholders are requested to kindly attend the same.
RSVP : Heena – 022-2838 1348-9
