Calcutta Chief Metropolitan Magistrate Court issues

Criminal Process against the Directors of Austral Coke

M/s Gujarat NRE Coke Ltd. has filed a criminal complaint before the Ld. Court of Chief Metropolitan Magistrate, Calcutta for alleged offences of mis-statements contained in the offer document issued by Austral Coke & Projects Ltd., a Kolkata based company.

On being satisfied with the complainant’s deposition, Ld. CMM Court held that a prima facie case is made out under Section 199 & 200 of IPC read with Section 63 of Companies Act 1956 and has issued summons against five Directors of Austral Coke & Projects Limited viz. Mr. Ratan Lal Tamakhuwala, Mr. Rishi Raj Agarwal, Mr. Rajendra Kumar Khaitan, Mr. M. K. Sinha, Mr. S. K. Chowdhary and its Auditors M/s T N Datta & Associates.

The Austral Coke & Projects Ltd., promoted by Mr. Ratanlal Tamakhuwala and his son, Mr. Rishi Raj Agarwal, has recently launched its IPO for issue of 72,60,000 equity shares of Rs.10/- each at a price band of Rs.164/- to Rs.196/- per share, which closed for subscription on 13th August 2008.

The complainant had stated in detail before the Ld. CMM Court the nature of misstatements and suppression of facts viz. stating the number of chimneys as 4 (four) instead of two number of chimneys which they actually had, thereby claiming the inflated production capacity and several other mis-statements including suppression of their various acts in their background as detailed in the Prospectus.

This is for the information of all concerned that the next date for appearance of all the accused persons being directors and auditors of Austral Coke & Projects Ltd. has been fixed on 10.11.2008.