Raasi Gets Stay On Raju'S Claim In Sri Vishnu Cements

Raasi Cements Ltd has got an interim injunction from the city civil court in Hyderabad staying any claims of ownership of the 40 per cent stake in Sri Vishnu Cements Ltd (SVCL) by the nine companies and B V Raju, erstwhile promoter of Raasi Cements.

India Cements Ltd, it may be recalled, has just taken over Raasi Cement from B V Raju.

On taking over the management at Raasi, India Cements decided to look closely at the sequence of events that led to the ownership of Sri Vishnu Cements being transferred from Raasi to a group of nine investment companies.

 

The entire affair came into the open when Raju and the nine companies came out with an "open offer" to buy 20 per cent of public holding in SVCL "for signing the non-disposal undertaking required by the financial institutions".

Raasi Cements believes the open offer was made because they anticipated things coming out in the open when the new management started looking into the details of the transactions.

The case filed by Raasi in the civil courts of Hyderabad forms the second plank of attack mounted by Raasi to "protect its property."

Already it has lodged a complaint with the Securities and Exchange Board of India (Sebi), alleging violation of the take over code when the 40 per cent stake in Sri Vishnu was transferred from Raasi Cements to a clutch of 9 firms that have close association with B V Raju.

The civil case essentially focuses on the "fraudulent transfer of property" from Raasi and will also highlight that the management did not take either the board of directors or the shareholders of Raasi when Raju effected the transfer of SVCL shares from Raasi to the nine investment companies.

Raasi's original stake in SVCL was some 19.74 per cent and went up to 39.5 per cent when it brought in Rs 5 crore as additional investment, as recommended in the rehabilitation package worked out by the Board for Industrial Financing and Reconstruction (Bifr) for Sri Vishnu Cements. Financial institutions have a 30 per cent stake in SVCL. The case has been posted for hearing on August 28.