Pyramid Saimira MD held, released in Indiabulls loan case

Pyramid Saimira Managing Director P S Saminathan was today arrested by the Haryana Police on a loan default complaint filed by Indiabulls, but the company claimed he was let out shortly after.

“The misunderstanding has been sorted out and both the parties have agreed to an amicable settlement,” Pyramid Saimira said in a statement. On the arrest, it said: “All the formalities in this regard are being complied with.” Besides, the media and entertainment firm said it would shortly sort out “...an ex-parte order of the Madras High Court”.

According to Pyramid Saimira, the company had taken a loan of Rs 60 crore from Indiabulls, out of which more than Rs 40 crore had been repaid.

“There has been a misunderstanding on the terms of settlement between Indiabulls and Saimira Holdings and Services Pvt Ltd, a promoter company which has taken loans from Indiabulls for the purpose of working capital/investments in Pyramid Saimira Theatre Ltd,” Pyramid Saimira Chairman N Narayanan said in the statement.

The Indiabulls spokesperson could not be contacted on whether they had reached a settlement and had withdrawn the complaint against Saminathan.

The Chennai-based company today claimed that it faces only short-term liquidity issues and, due to certain other unfavourable environmental circumstances, had to also face publicity constraints.

Pyramid Saimira also claimed that it is on a revival path despite heavy losses in the last nine months and assured “...all stakeholders that the company/group is fully solvent”.

Pyramid Saimira has been courting trouble since last year for allegedly forging letters, claiming the market regulator Sebi’s approval for an open offer, but this is unrelated to the Indiabulls complaint.

Last week, the company had informed the Bombay Stock Exchange that its board would meet on June 26 to discuss the financial results and raising of funds through Qualified Institutional Placements (QIPs).