P Kishore, former managing director and original promoter of Everonn, said that the allegations against him are blatantly false, malicious, defamatory and totally contrary to the company's earlier filings before the exchanges.
“This is only an attempt to cover up their own misdeeds and inefficiency and lack of administrative skills in taking forward the business model. It is a fact that the Sunny Varkey group became the promoter and took over complete management from me as early as September 19th,2011," said Kishore.
He added, when he relinquished the management control four years ago, the company had a staff strength of over 8,500 employees and was profitable business partnerships with individual educational institutions and various state governments. "We did not have even a single instance of default with any financial institutions/banks or any government authorities," he said.
He added, the price of the scrip at the time of the open offer was Rs 528 and on earlier occasions the price of the scrip had touched a high of Rs 1,300. The current price of the scrip is Rs 20 after 4 years of effective management of the new promoter Sunny Varkey group.
"This is only at attempt to mislead the financial institutions and to erode the shareholder value further since the company has no proper future business plan and the company is in deep financial crisis with mounting debt and losses," said Kishore. He further said in the 16 quarterly reports and three annual reports filed it has been mentioned that no fraud has been committed by or on behalf of the company. The said filing has been filed after thorough scrutiny and due diligence by internal, external and independent audit committees.
The present management/promoter at the time of making an open offer mentioned that proper and thorough due diligence was done by the promoter at the time of the open offer.
"The new promoters unsuccessfully attempted to file a false criminal complaint against me which, after detailed investigation and scrutiny of records, the complaint was dismissed by the police and the High Court of Madras," said Kishore.
"It is a sad attempt to avoid the huge payment of debt and to hoodwink the shareholders about the mounting losses due to their maladministration. This is probably also an attempt to avoid a term sheet signed with me March 5, 2012 wherein the Sunny Varkey group had agreed to purchase on certain understandings my and my family member’s shares at a price of Rs 331 which amounted to Rs 99 crores, with a non-compete clause".
Perhaps the Varkey group has realised that the said agreement may trigger a fresh open offer under the relevant laws in India and probably that could be why the said agreement and other understandings was willfully suppressed before the shareholders and other authorities, alleged Kishore, who added four CEO’s have resigned since the new promoter group (Sunny Varkey) took over management in the past four years.
".....trying to blame the earlier management to avoid their duties and financial obligations due to their own inefficiency and misdeeds," said Kishore.
