Pure Drinks Feud Turns Murkier

The bitter feud in the late Charanjit Singhs family, promoter of Pure Drinks, has taken a new turn with a Jalandhar district courts judgement that a status quo be maintained regarding disposal of properties belonging to the company or creating encumbrances over it.

The court order, which was passed on December 31, 1997, was in response to an appeal filed by Satwant Singh, managing director of Pure Drinks against Ajit Singh, his brother and Harjit Kaur, widow of the late Charanjit Singh, both of them being directors on the company board.

The court order states that the status quo over the sale of properties be maintained until the main appeal has been decided upon by the district court. The main appeal refers to the directorship of Harjit Kaur as a member of the board of Pure Drinks.

 

The appeal was filed by Satwant Singh who alleged that Ajit Singh and Harjit Kaur were attempting to dispose off the assets belonging to the company, including selling properties of Pure Drinks which would cause irreparable loss to the firm.

Satwant Singh has alleged that Ajit Singh and Harjit Kaur were clandestinely colluding to sell the properties belonging to the company through Richard Ellis, a real estate consultant.

The modus of the same was that the property would be transferred first to one A Mehra who would subsequently transfer the property to the ultimate buyer at a much higher price and the difference would be shared amongst respondent 2, 3 (Ajit Singh and Harjit Kaur) and Bhai Upinder Singh, states the appeal. Bhai Upinder Singh is Ajit Singhs brother-in-law.

Besides, it also alleges that the other directors had illegally called a meeting of the board of directors on December 29, 1997, whose agenda included an item to consider the proposal to dispose the companys properties.

Pure Drinks owns properties in the Connaught Place and Okhla areas of Delhi, besides some properties in Calcutta and Chennai. The land at Chennai, valued at Rs 300 crore, is owned by Pure Drinks (Calcutta) while the development rights are vested with the Delhi company.