Nadar Bank Investors Forum to stage protest on June 12

Published: Thursday, June 7, 2007, 16:38 [IST]

Chennai, June 7 (UNI) The Nadar Mahajana Bank Share Investors' Forum will stage a protest demonstration in Chennai and Tuticorin on June 12 demanding a CBI probe into the alleged transfer of 24 per cent of the shares of Tamil Nadu Mercantile Bank (TMB) to 'fictitious' foreign firms in Mauritius and US.

A decision to this effect was taken at the advisory committee meeting of the Forum, which consists of Nadar Mahajana Sangam and Dakshina Mara Nadar Sangam, here today.

While the agitation in Chennai would be led by Forum General Secretary G Karikolraj, the one at Tuticorin, to be held in front of the head office of the TMB, would be led by Dakshin Mara Nadar Sangam.

The forum would also submit a petition to the CBI demanding a probe into the deal.

Talking to reporters after the meeting, Mr Karikolraj alleged that Sterling Group Chairman C Sivasankaran, in connivance with two others, had transferred 24 of the 33 per cent shares belonging to the Nadar community, to five firms in Mauritius situated in one address, and to the two US firms at higher rates.

Claiming that the total value of the 33 per cent shares was Rs 165 crore, he said Mr Sivasankaran had quoted a similar amount for 24 per cent of the shares to the foreign firms, and had transferred the balance nine per cent of the shares worth Rs 60 crore, in his favour.

The Forum claimed that the transfer itself was illegal as the shares belonged to the Nadar community, which was ready to purchase the entire 33 per cent shares.

Of the total 67 per cent shares, the Essar Group had given back 34 per cent shares and Mr Sivasankaran was entrusted with the task of retrieving back the remaining 33 per cent to the community as per an agreement signed four years back.

Though the agreement still exists, Mr Sivasankaran had unilaterally transferred the shares in connivance with the TMB authorites, the forum said, and demanded a CBI probe into the deal.

Despite the Forum getting an interim injuction from the Madras High Court on transfer of shares on May 15, Mr Sivasankaran had transferred it later at a pre-fixed date of May 13, the Forum alleged.

UNI

 

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