SEBI -Please Make your actions truly helpful for investors not only penal to defaulters

TEXT OF LETTER WRITTEN TO SEBI

SMALL INVESTORS’ WELFARE ASSOCIATION

     23^rd  October  2021,

 Ref. Open Offer pending for more than 20 long years-- by Dahiya family of Polo Hotels Ltd.

Sub. Make your actions truly helpful for investors not only penal to defaulters

This is an Extreme SOS situation. The shareholders’ value of more than 200 Crores will be lost completely. SEBI’s and SC’s 4 orders are ignored by the defaulters,  investors are bleeding but the mischiefs are enjoying the fruits of their misdeeds.

Very brief case history is- The Dahiya family took over Hotel Polo Ltd. On 31.03.99 and tried to cheat the investors by giving a wrong price for such acquisition and brought out an Open offer @ Rs. 8.75 against their actual acquisition price of Rs.23.75. SEBI ordered them to announce offer @ 23.75. They filed appeal in SAT 3 times, Punjab & Haryana High Court 2 times, Hon’ble Supreme Court 5 times.

There are many shareholders who have died in last so many years. One of the largest Public shareholder, a gallantry award winner soldier is about 75 now waiting for justice for last 20 years. He and Kommalam Sardana were the first to complain. While Komamalam Sardana died, the soldier is also counting his last days and has been requesting us to do something to get justice for the investors.

We request you to please look into the matter urgently and  if thought fit take strong action as suggested by us earlier: 

             

1.   Immediately remove the Acquirers and their nominees  from the Board of directors of the company. As per the Regulation 22 & 23 of SAST 1997, the Acquirers are not entitled to sit on the Board of the company till such time they have completed the offer or deposited 100% of the amount in an Escrow account.

2.    For day to day management of the company, appoint an administrator or a professional on the lines of RP (Resolution Professional) under the IBC, or allow the minority shareholders to appoint the Board of directors and a managing committee to manage the hotel.

3.    Impound the passports of all the Acquirers or have “Look-out” notice issued so that they cannot flee the country.

4.    Expedite   prosecution proceedings against Mr. Abhey Ram Dahiya, Mr. Amardeep Dahiya and Mr. Pankaj Dahiya, for their failure to comply with SEBI order of June 3, 2019.

5.    Speed up the process of recovery of funds by selling the properties of the Acquirers and deposit the money in escrow a/c to complete the Offer.

6.    As provided in SAST 1997 Regulation 44 (a) appoint a merchant banker for  selling share of the defaulting  acquirer 

7.    As provided in SAST 1997 Regulation 44 (d) Freeze the  voting or other rights  on these shares.( You have already frozen the DP account.)

8.    Appoint a merchant banker to complete the process of Open offer, any shortfall ( approx. 10 Crores only) in the fund may please be temporarily made up from the huge corpus of IPEF and subsequently recovered from the defaulters.