The Hindu Business Line : Guwahati HC stays Shoppers' Stop IPO

THE Guwahati High Court has stayed the IPO of Shoppers' Stop following a PIL filed by a little-known organisation of minority shareholders, North East Investors' Association. The matter will come up for listing tomorrow.

Mr Justice B. Lamare (of the Shillong Bench) today stayed the issue, reacting to the petition that certain members of the Raheja family (the promoters of the company) who are also members of the Shoppers' Stop board, have allegedly misled the public.

Meanwhile, a Kolkata-based organisation of minority investors, Burrabazar Investors Welfare Association, has also moved the Calcutta High Court against the IPO of Shoppers' Stop. The allegations are roughly the same.

The Association, which has named Mr C. Raheja, Mr R. Raheja and Mr Neel Raheja as the violators, has also made SEBI a party to the case.

A writ petition filed today has referred to Section 274(1)(g) of the Companies Act, 1956, claiming that these directors were also directors of certain other companies that have not met the requirements laid down in the statute. The other companies include Eastlawn Resorts and Mass Traders, it has been alleged.

Section 274(1), it may be mentioned, relates to disqualification of directors. It lists the grounds on which a person shall not be capable of being appointed director of a company. Specifically, Section 274(1)(g) deals, inter alia, with persons who are already directors of a public company that has not filed the annual accounts and annual returns for a certain period of time.

The Act has dealt with disqualification, provided such a person shall not be eligible for appointment as director of any other public company for a period of five years from the date on which such public company (in which he is a director) failed to file annual accounts and annual returns under certain clauses.

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Guwahati HC stays Shoppers' Stop IPO