Office bearers of The Soybean Processors Association of India (SOPA) have alleged massive irregularities in the demutualisation process of The National Board of Trade (NBOT) – a body promoted by SOPA. In a news conference held in Mumbai on Tuesday, the SOPA office bearers levied a series of serious allegations regarding the demutualisation process against the NBOT chairman Kailash Shahara, who is also the chairman of Ruchi Soya Industries Limited.
Rajesh Agarwal, past chairman, SOPA said, ?Around seven companies promoted by the friends and close associates of Kailash Shahara allotted NBOT?s equity shares of the face value of Rs 10 at par in the year 2003. Now, the board is planning to go for an initial public offering. The current daily turnover of NBOT is over Rs 700 crore and the board?s present equity valuation is pegged at around Rs 20,000 crore.?
?Kailash Shahara has been holding the post of NBOT chairman since the last nine years. Although it is an illegal act, we do not wish to drag him on this issue to a court of law in the near future. However, we have brought this and the equity placement?s issue to the notice of the Forward Markets Commission chairman, BC Khatua and are going to approach the Securities and Exchange Board of India too,? added Agarwal.
Meanwhile, Ravessh Bafna, executive director, NBOT said, ?The consent of all 119 NBOT members was taken in the year 2003 before the equity shares were allotted to various companies by following the best corporate governance procedures. None of these companies are in any way related to the chairman of NBOT. The legal certificate of formation of a demutualised company was issued by the Union Ministry of Company Affairs, which is legally recognised as the conclusive evidence of compliance of the entire applicable process for forming such an entity.?
He said, ?The NBOT board, consisting of 6 NBOT members and 4 government nominees, has elected Kailash Shahara as their chairman time and again and often in accordance with all concerned governing rules and regulations of the body.?
Bafna informed that the current share capital of NBOT is Rs 1 crore, the total capital deployed is less than Rs 10 crore and its annual net profit is around Rs 2 crore.