June 23, 1995
The presentation of ITC Global was made to the Board of ITC Global at Calcutta where the issue of the EST. Group advances were discussed.
Andrew Milne called me late in the evening and advised me that his investigations were proceeding well and that he had found out that Lokman as a company had not been wound up and that is was still in existence.
....Investigations had revealed significant amounts still lying in the accounts of Lokman in Zurich and Vaduz and his advice to me was to seek an immediate injunction in the courts.
I met Mr F R Vevaina later in the evening...... I advised him that I would inform the Board of complete details at a later date.
June 27, 1995
I spoke to Mr Kutty and explained the view of Mr David Yeow. Mr Kutty asked me to have a word with Mr Chitalia.... I have not however, mentioned to Mr Kutty the fact that I have evidence that Lokman is still in existence....
Mr Suresh Chitalia insisted that nothing could be done about Lokman since the company had already been wound up. I mentioned that this had brought ITC Global into an awkward spot to which he responded that he was exactly in a similar position because of ITC Ltd.
June 28, 1995
I started work on preparing a complete dossier on the Lokman dues....
June 29, 1995
Andrew confirmed to me that the funds in the bank accounts were still available and that if we did not move fast, he feared that the funds would fly.
June 30, 1995
At this stage, I decided to seek the views of Mr Sitaraman.
Mr Kutty called me and asked me why I wanted to speak to Mr Sitaraman I advised him of any concern regarding Lokman and that there was need to protect the ITC Global Board. He advised me that he would be going to the US with Mr Sitaraman.
July 1, 1995
I have been advised by Sriram that R K Kutty and Mr N Sitaraman ITC will be going to the US on 10th July 1995 to try and arrive at a settlement with the Chitalias. I am therefore delaying taking further action.
July 6, 1995
I have today sent one complete set of papers pertaining to the Lokman issue including copies of bank transfer certificates as well as the legal opinion received from the lawyers to Mr Malcolm Fry at the office of Norman Davis at London, today by registered mail.
July 8, 1995
I received a call from Mr Kuttys secretary advising me that he had postponed his trip and that was planning to leave on the 12th for London. This further delay got me worried....
July 9, 1995
I mentioned to Kutty about the concerns of our auditor as well as the fact that ... Citibank withdrawing our bank facility. .
It is now my belief that this visit is unlikely to take place in a hurry. I think I will have no option but to take action tomorrow morning. .
July 10, 1995
I have today decided to take legal action to seek injunction in the courts of Liechtenstein and Zurich to freeze the funds due to ITC Global upto a maximum of US 4 million.
My main worry in taking action is the repercussions on ITC Ltd as well as the reaction of ITC to settle the dues of ITC Global.
July 11, 1995
Barry Roy called me and advised me that Mr Suresh Chitalia had instructed Mr Sanjeev Jain not to open the Letter of credit for the Magnolia Ace Vessel valued at US $ 2.2 million till the ITC matters are resolved. This was a part of the normal ship breaking business that is being done with Mr Jain.
This move of Mr Chitalia puts a different complexion on the action that we are proposing since Mr Suresh Chitalia has obviously decided adopt measures that will result in precipitative action from ITC Global.
July 12, 1995
Spoke to Andrew Milne in the evening who advised me that the lawyers in Liechtenstein has discovered that there was no further money available in the accounts. However, it appeared that the funds in Habib Bank were still available.....
July 13, 1995
Mr R K Kutty reached London and inquired on the status of our inquiries. I instructed Sriram that I would decide on the timing of informing the Board.
July 14, 1995
Sriram is leaving for the US with Mr Kutty for a meeting with Suresh Chitalia on Sunday morning at New York. I have advised Sriram that his primary interest is ITC Global ....that we in ITC Global have been put in a very compromising position vis-a-vis Singapore law. Three issued that needed be addressed with him from the perspective of ITC Global:
a. Lokman Dues
b. Magnolia Ace
c. Hup Hoon shareholding
July 17, 1995
Sriram told me that his meeting with Suresh Chitalia had not gone too well and that he was maintaining the following:
1. That he would retain 30% of the amount (US $ 10 million) to protect himself in case of a legal issue that may be instigated by BAT after Mr Chugh steps down.
2. That there was nothing he could do about Lokman since the company had been wound up but that he would be willing to consider setting off the additional US $ 1 million by visiting Liechtenstein with us.
3. That he had advised stoppage of LOC on Magnolia Ace and that once he was in a position to raise additional funds, he would attempt to give us the LOC
4. That he was ready to transfer the shareholding of Hup Hoon as advised but that he wanted the original transfer deed back before he signed a fresh deed.
My impression of this meeting was that Mr Suresh Chitalia had decided to dig his heels in.
July 18, 1995
I advised Mr N Sitaraman that we had just found out that Lokman had not been wound up. I have also asked Sriram to advice Mr Kutty accordingly. Met Mr Simon Smith and took him through the entire matter regarding Lokman
To be continued tomorrow