There have been a plethora of unsubstantiated and motivated allegations made against Sujana Group, mainly in a bid to target Shri YS Chowdary’s character. Several manufactured charges were thrown at the Group in a slew of media outlets since his entry into politics. In the spirit of transaparency and good faith, here is an attempt to provide clarifications on certain issues raised in sections of the media:
During the ordinary course of business, Shri YS Chowdary provided a personal guarantee to secure various financial facilities availed by Sujana Group Companies from banks and financial institutions. Two of the banks, SBI and IDBI, proceeded to recover the dues, stating that the matter is being settled through the Insolvency and Bankruptcy Code (IBC).
The opening of several companies in our group follows a meticulous procedure with the Registrar of Companies. These companies are incorporated, considering the growing business needs and adhering to the due procedures outlined in the Companies Act.
Our established practice is to maintain transparency in our operations. In accordance with the rules of the land, we conduct our business, and the actual revenues are accurately reflected in our statements. We have never sought sanctions based on exaggerated figures from banks.
We never intentionally resorted to rescheduling loans. However, due to economic conditions and a slowdown in a specific business vertical, we opted for the rescheduling of loans. This serves the dual purpose of reducing the Non-Performing Asset (NPA) burden on respective banks and allowing additional time for that particular vertical to break even.
Our operation as a public limited company is highly transparent, maintaining a high level of corporate governance. Board meetings are conducted at regular intervals, and it is a standard practice of the company to inform the BSE/NSE about the developments arising from these meetings. Any fluctuations in the share prices are attributed to prevailing market conditions. When the share prices have decreased, we have adhered to the rules by making share purchases.
We do not believe in the accretion of wealth through hawala transactions. Our export-oriented companies operate within the guidelines and have not violated any rules.
Whether it’s Sales Tax or Commercial Tax, our company pays based on the actual turnover registered. In instances where taxes are assessed on the higher side due to calculation interpretations, we approach the next competent authority to resolve the issue. In our pursuit of justice, we sometimes take the matter to the courts. Consequently, we ensure that we pay taxes in accordance with judgments or decisions made by competent authorities.
Our companies are established following due procedures with the Registrar of Companies, adhering to the objectives outlined in the Articles of Association and Memorandum of Association documents. We strictly avoid circular trading practices. In instances where disputes arise, particularly regarding the interpretation of tax assessments, we seek justice through the honorable court, and these matters are currently sub-judice. From our perspective, our group companies consistently adhere to the prevailing rules and pay taxes based on actual turnover.
As the assessment by the CTD was on the higher side, we approached the Appellate Deputy Commissioner, CTD, and later the honorable court to seek justice. The court has issued a stay order on tax payments, and we refrain from making any comments as the matter is sub-judice. There are ongoing matters to settle with the Sales Tax department. It is quite natural to encounter such issues as our group expands and endeavors to avail benefits that are genuinely and legally available to the companies. At no point have we attempted to suppress information, consistently approaching relevant authorities such as the Central Excise Tribunal, Sales Tax Commissioner, and the courts to ensure justice for our group.
Our companies are seeking exemptions for the second and subsequent sales of iron and steel products from Sales Tax. Despite having strong documentary evidence to support the legal claim for exemption, our companies contested the denial when notices were issued. The matter is currently pending before the Honourable High Court.
One of the strategies of the Sujana Group is inorganic growth through takeovers/mergers. The intentions of the Sujana Group are quite positive and clear in attempting to take over ailing units. Our endeavor is to turnaround these units and at least sustain the livelihood of the employees working there. It is a time-consuming process to bring these sick units back on track, and we are committed to the promises given to BIFR on these matters.
The Sujana Group of Companies applies for credit limits based on audited financials, which were sent to BSE/NSE and other regulatory bodies as per the Companies Act. Hence, the depiction of inflated turnover figures to bankers will not arise.
Shri YS Chowdary was summoned by the CBI under Section 160 of CRPC, in relation to investigation in FIR No. 4(E)/2017, vide notices dated 22.04.2019 and 27.04.2019. This FIR is relating to M/s Best and Crompton Engineering Projects Limited (BCEPL), Chennai. Shri Chowdary has no knowledge of the affairs and management of M/s BCEPL because he is neither a director nor shareholder nor an employee nor business associate nor related to any of the directors of M/s BCEPL. It is clearly evident from the records of the Registrar of Companies, Tamilnadu, that the applicant is no way connected with functioning of M/s BCEPL.
YS Chowdary was not aware of any Look-out Circular (LoC) issue and only learned about it while traveling to the USA in November 2020. Subsequently, the Honorable Telangana High Court issued orders permitting Shri YS Chowdary to travel as per the submitted itinerary. He has since challenged the LoC in court.
Several manufactured charges were thrown at the Group in a slew of media outlets since Shri Chowdary's entry into politics. In the spirit of transaparency and good faith, here is an attempt to provide answers to these motivated allegations.