HYDERABAD: The Hyderabad bench of the National Company Law Tribunal (NCLT) has restored the stakes of a few individuals who were allegedly duped by the management of Hira Multi Construction Ventures Pvt Ltd (HMCL).
It was alleged that the family of Saudi-based non-resident Indian (NRI) Habib Abdul Razzaq Hadi Ali Albaghdadi had fraudulently transferred about 50 per cent of shares in the company belonging to other promoters to his own family. The NCLT had already struck down the Albaghdadi family’s takeover of another company, Greenscape Mega Resorts Pvt Ltd, again allegedly using fraudulent methods, and restored the ownership to the original promoters.
Incidentally, Greenscape and HMCL had entered into an agreement with another company, Kancharla Constructions, to develop Vooty, an international golf course project, in about 200 acres at Vikarabad on the city outskirts. Greenscape which owned nearly 100 acres was taken over by the Albaghdadi family.
The NCLT declared the takeover illegal and cancelled the sale agreements/ development-cum-general power of attorney subsequently entered into by the Albaghdadi family as illegal and collusive and unenforceable under law.
Deccan Chronicle had carried a report ‘NCLT terms realtor HMCL’s shares transfer fraudulent’ in October last year in these columns, highlighting the tribunal’s ruling that it had no hesitation in holding that the respondents (Albaghdadi family) had indulged in fraud and perpetuated fraudulent acts.
The case pertains to individuals complaining that they were allotted shares sometime in 2008 but finding, to their shock, that the same was transferred in the name of Albaghdadi family members without their consent or knowledge.
The NCLT dismissed the contentions of the Albaghdadi family that the complaint was time-barred and that the transfer of shares was effected following a letter from the original promoters. Later, the Albaghdadi family changed their version and claimed to have received an oral request to transfer shares.
The NCLT categorically said transfer of shares should not be registered except on the production of the instrument of transfer duly stamped. At one stage, contempt proceedings were initiated against the management for not implementing the NCLT order.
On August 22, the HMCL management informed the NCLT of a board meeting held in Saudi Arabia that passed a resolution rectifying the register of members of the company pursuant to the tribunal order. Accordingly, 19,100 shares (29 per cent) were restored to the original promoters. Sources said the number was likely to go up to 50 per cent because other promoters whose shares were also fraudulently transferred had approached the NCLT and a hearing is underway.
