Kochi based businessman awaiting for SEBI to settle his dispute with PI Industries

On the other side, PI Industries, alleged in answer to SEBI's probe that the shares were transferred to other people in 1989

Babu George Valavi, a businessman based in Kochi had reportedly bought equities in a company 43 years ago, in 1978, that are at present worth rupees 1,448 crore.

 

This all initiated when Babu George Valavi and his four cousins purchased 3,500 shares of Mewar Oil and General Mills Limited which is an Udaipur-based unlisted company.

 

Babu George worked as a distributor for the company in the 70s and 80s. The 3,500 shares that he purchased are equated to a 2.8 percent ownership in the firm.

 

After his late brother's contact with the firm's founder and chairman, PP Singhal and Babu George has completely failed about the money he had invested.

 

Valavi discovered that the company had renamed itself PI Industries, a publicly traded company that was doing quite well financially.

 

Valavi's son discovered the PI Industries in 2015, and also requested the firm's registrar to transfered the physical share certificates to a demat account.

 

PI Industries' registrar was Karvy Consultants and he approached an agency to get his physical shares into a Demat account.

 

The agency, on the other side of the table had advised the family to contact the company directly.

 

When the family contacted the form, and discovered shocking truth. The Valavi family were informed that they were no longer the stakeholders and that their equities had been sold to others in 1989.

 

The company sent its senior executives to meet with Babu George Valavi in Kochi a year after the claim was filed in 2015 to settle the dispute after checking the original share certificates.

 

He says the had accepted that the documents were authentic but no further communication was made.

 

The family had plea the stock exchange regulator SEBI (Securities and Exchange Board of India) after receiving no answer from the company.

 

On the other side, PI Industries, alleged in answer to SEBI's probe that the shares were transferred to other people in 1989.

 

Babu George had also claimed that several high executives may have committed fraud by transferring the shares without the knowledge of the firm's top management.

 

He lately stated to a leading daily that the SEBI inquiry acknowledgedis still ongoing and that he is hopeful.

 

Valavi family's shareholding in PI Industries are now worth at 42.8 lakh shares, which, at the present market valuations, should be worth rupees 1,448 crore.

India Scanner News Network

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