Gujarat NRE Coke files civil suit against Austral Coke

Gujarat NRE Coke has claimed Rs 4,761 crore in a civil suit filed in the Calcutta High Court against Austral Coke and Projects Limited (Austral), its directors, auditors and merchant bankers and others associated with Austral Coke’s IPO.

According to a press release issued by Gujarat NRE Coke, the company has taken serious objection to Austral Coke’s use of the Gujarat NRE Coke name in a distorted and misleading way to sell its issue to public investors.

Gujarat NRE Coke has prayed before the High Court that by using its name, Austral Coke has severely damaged the reputation of Gujarat NRE Coke, leading to a loss in its market capitalization and shareholder interest for which it has sought compensation.

Gujarat NRE Coke has also sought a declaration from the High Court that there is no family relationship and injunction restraining the Austral promoters from terming the matter as a family dispute.

The company has also sought a declaration that the merchant bankers associated with the audit issue did not carry out proper due diligence, the books of accounts maintained by Austral and audited statements, profit and loss account and balance sheet are not in accordance with law, all the directors of Austral are liable for prosecution for various misstatements made in the red herring prospectus.

Further, Gujarat NRE Coke has sought an injunction restraining Austral Coke or any its associates from making and publicizing any sort of comparison between the company and Austral Coke.