22 May 2015 : The SEBI order linking Mr A. Vellayan, Chairman of the Murugappa Group, to trades by two individuals in shares of Sabero Organics Gujarat Ltd., a company that was acquired by Coromandel International Ltd. in May 2011, is based merely on suspicion and is a far-fetched tenuous conjecture.
The only purported link sought to be made by SEBI between Mr. A Vellayan and these transactions is that one Mr. A. R. Murugappan is a distant relative (son of a grand aunt) and had had a property transaction with Mr. A Vellayan way before the Sabero transaction was even thought about. SEBI has jumped to the conclusion that the trades could potentially be attributed to suspected communication of unpublished price sensitive information about the Sabero deal by Mr. A Vellayan to this distant relative.
The link drawn in this interim Order is not a conclusive finding. Mr. A Vellayan is resolute in defending the serious harm to reputation caused by this Order and will take appropriate action as legally advised. He is keen to also demonstrate bona fides and will extend full cooperation to SEBI to complete investigations expeditiously, apart from seeking redress against the premature measures adopted.
In keeping with family values and tradition, he has stepped aside from the Chairmanship of the Murugappa Group Corporate Board and of Coromandel International Ltd. and EID Parry India Ltd. until this matter is resolved.
Caution Notice
The public is hereby cautioned that it has been brought to our notice that certain unscrupulous persons/agencies are issuing fake sanction letters to customers and getting their signatures in fake loan agreements purporting to be a loan sanction letter & loan agreement of Murugappa Group and such persons /agencies are attempting to extort money by demanding security deposit/processing fee/insurance fee from the gullible customers for processing the required loan etc. In the aforesaid documents, those unscrupulous persons/agencies are also using the registered logo and name of Murugappa Group against law with intent to gain wrongfully by using the goodwill and reputation of the Group.
Please be informed that Murugappa Group is not a separate legal entity and never requires any customers to pay any advance money or deposit for loan sanctioning. Public is cautioned not to rely or act on any such fraudulent sanction/offer made in the name of Murugappa Group without verifying the authenticity of the contents.
Customers who are interested in availing loans may directly contact any of the nearest branch of Cholamandalam Investment and Finance Company Limited (Cholamandalam) a constituent of our group for further details or get in touch with us at 1800 200 4565 or alternatively email at customercare@chola.murugappa.com, or SMS at 9500000312.
MURUGAPPA GROUP