[Resolved]  Sahara City Homes — consumers duped

Address:

Tamil Nadu

THE ARROGANT BEHAVIOUR OF SAHARA NOT TO REPLY/RESPOND TO THE LETTERS FORCED ASSOCIATION TO COMPLAIN TO THE FOLLOWING AUTHORITIES:

To
The Regional Director,
Ministry of Corporate Affairs
5th Floor,
SHASTRI BHAWAN,
26, Haddows Road,
CHENNAI- 600 006 Date: [protected]


Sub : Proposed IPO by SAHARA PRIME CITY LIMITED
Ref : SAHARA PRIME CITY LIMITED DRHP dated 29.09.2009

Sir,

We would like to bring it to your notice that M/s SAHARA PRIME CITY LIMITED, having their Regd. Office at Sahara India Centre, 2, Kapoorthala Complex, Aliganj, Lucknow- 226 024 (U.P.), is planning to offer Public Offer through IPO to collect funds for their proposed realty projects in different parts of the country including one at Chennai, Tamilnadu. The above company has already collected a huge amount in the year 2003-04 from general public in the name of constructing a world class township at Chennai. The company have failed drastically and even could not construct a boundary wall and put a board at the proposed site which they promised to complete by 2007.

In this regard, the representatives of the people who paid money to company to book their houses, wrote several letters to the management of Sahara Prime City Limited, but in vein. The management of the company did not bother to answer the letters written to them. Fading up with the attitude of the management of the company, all the members who paid the money to the company took the matter with a national magazine to highlight the issue as they considered it as a serious fraud to general public. The matter was suitably presented to public by the national magazine “OUTLOOK BUSINESS” in their issue for the period 8th August, 2010 to 21st, August, 2010.

Surprisingly, the management of the company which never bothered to redress the grievances of their customers suddenly woke up from deep sleep after reading the article in the magazine and used their discretionary powers to cancel the booking of Dr. Shankar who highlighted his plight in it. Though the Company has taken a swift action in using their discretionary power but have forgotten their basic duty of informing the status of project to their 1400 customers from Chennai project alone who are waiting for the past 6 years in dark having invested by Rs.3100 Lakhs.

We are enclosing herewith following documents for your perusal;

a. Letter written by Mr. Ramesh Haritwal to management of SPCL on 29.01.2010
b. Letter written by Mr. Ramesh Haritwal to management of SPCL on 09.03.2010
c. Joint memorandum submitted to the management of SPCL on 13.03.2010
d. Letter written by the Association to the management of SPCL vide letter no SCH CMA/SPCL 001/2010-11 dt 19.05.2010
e. Letter written by SPCL to Dr. Shankar cancelling his booking for highlighting issue in magazine.
f. Copy of the report published in the magazine.

Seeing the misery of Dr. Shankar who was promised a heaven on earth by the management of SPCL, this Association is of the opinion that the company management is not fair in their approach. They have collected the money from general public six years back and have done





nothing, are planning to collect money from Public through I.P.O for the same cause. What would happen to the new investors when the earlier investors are suffering at the hands of the Company. Hence, the Association feels that it is a fit case for considering a serious fraud as the company has failed drastically in their obligations. The company is yet to prove the genuineness of the Public Offer ( IPO ) by taking some positive steps in practical not on papers.

We therefore, request you to look into the matter and initiate a suitable action where thousands of prospective investors can be saved from an apprehensive fraud.


Thanking you,

Yours truly,
For, Sahara City Homes Chennai Members Association



Secretary

CC : 1)Additional Director (FA-I)
Serious Fraud Investigation Office
2nd Floor, Paryavaran Bhawan,
CGO Complex, Lodhi Road,
New Delhi- 110003

2)Ministry of Corporate Affairs
A Wing, Shastri Bhawan
Rajendra Prasad Road,
New Delhi- 110 001

3) Chairman,
SEBI, C4-A, ‘G’ Block,
Bandra Kurla Complex
Bandra (East), MUMBAI-400051

4) The Press Trust of India,
#10, United India Colony,
1st main Road, Kodambakkam,
CHENNAI- 600024
(with a request to take up the matter in larger interest of general public)