[Resolved] Sterlite Industries — Misappropriation of shares
AAshit Madhusudan Desai
Sub: M/s Sterlite Industries (I) Ltd.
Ref: Unilateral appropriation my shares without my consent.
I held 200 shares of Sterlite Industries (I) Ltd., ISIN code INE268A01023 in DEMAT form with the Stock Holding Corporation of India Limited (DP ID IN301135).
On May 24, 2002 Sterlite Ind (I) Ltd. sent an offer for purchase of my equity shares accompanied by a Cheque bearing No.535246 dated May 31, 2002, for Rs.20,000/- drawn on Standard Chartered Grindlays Bank.
In pursuance of my wish NOT TO ACCEPT their offer for purchase of my equity shares and as per their instructions, I had sent back the OPTION FORM duly filled in all respects along with a copy of the cheque sent by them. This was in indication of my refusal to sell my shares. The Option Form was sent to them on 16-06-02 with a copy of the cheque that was NOT en-cashed by me. I am still holding the original cheque which has not been en-cashed.
I find that in-spite of my refusal to sell the shares; M/s Sterlite Industries (I) Ltd have unilaterally appropriated my shares without my consent. I have NOT en-cashed their cheque for Rs.20,000/-. I have REFUSED to sell my shares by RETURNING their Option Form as required by them.
M/s Sterlite Industries (I) Ltd. have not answered any of my previous letters addressed to Sterlite Industries (I) Ltd, C/o Sharepro Services. I have written letters dated 12-03-04; 15-06-05 and 18-02-06 to Sterlite Industries (I) Ltd. c/o Share Pro Services requesting them to register my complaint and seeking redressal of the issue.
On Nov. 11, 2009 M/s Karvy Computershare Pvt. Ltd. (representing M/s Sterlite Ind. (I) Ltd.) have replied to my letter dated[protected] stating that “your shares having been considered under the scheme of arrangement, stands extinguished”; “non encashment of cheque is irrelevant.”
The facts for your kind consideration are as follows.
1. Sterlite Ind. (I) Ltd., unilaterally, of their own accord, sent an offer to buy back the shares.
2. I, the share holder, refused to sell the shares and sent back the Option Form indicating my refusal to sell.
3. I have also not en-cashed the cheque they sent with their offer letter.
4. Without my consent the Company has appropriated my shares.
5. In their letter dated Nov, 11, 2009, M/s Karvy Computershare Pvt. Ltd. have stated that my shares “stand extinguished” and “non encashment of cheque” sent by the Company “is irrelevant.”
Sir, I submit that I cannot be faulted if Sterlite Ind (I) Ltd. did not record the Option Form I sent to them refusing to sell my shares. Secondly Sterlite Ind (I) Ltd claims that it is “irrelevant” that I refused to en-cash the cheque which the Company sent.
If this transaction is to be considered valid and complete three basic conditions are to be fulfilled:
1. I, as share holder, should agree to sell my shares.
2. The cheque, unsolicited and unilaterally sent by the Company, should be en-cashed by me in acceptance of the Company’s offer.
3. The sale of Shares by a shareholder should be by an affirmative action of the shareholder wherein the shareholder expresses his desire to sell and signs a document to that effect. In this case the Company has the audacity to simply appropriate the shares by default.
Also, is it not the Company’s responsibility to see whether their unsolicited payment sent unilaterally by the Company has been en-cashed by the shareholder before appropriating the shares.?
I submit that there is a larger issue for the Regulator to consider here. There are many shareholders like me who do not actively manage their portfolio; some o[censored]s may have transferable jobs and have to change addresses often or have our mail delivered to wrong addresses because we live in flats where many people have similar names. Does that mean that if I have not received a particular mail or not replied to the Company, within a particular time frame, the Company can simply appropriate my shares.
In my case, not only have I have refused the Company’s offer to buy back my Shares; I have also not en-cashed their cheque.
My Shares have disappeared into their pockets without my consent and without payment?
Kindly intervene and instruct Sterlite Ind. (I) Ltd. to credit my D-mat. account, held with SHCIL, with my original 200 shares that they have appropriated, with accrued dividends, bonus shares since issued and any other accruals.
The Company, vide letter of Karvy Computershare dated Nov. 11, 2009, is offering to pay Rs.20,000/- in lieu of 200 shares of the company, with accrued dividends, bonus shares since issued and any other accruals. They are cheating me. The value is a couple of lakhs not Rs.20,000/-.
Kindly help me by directing the Company to restore my shares. I will be very grateful and deeply obliged.
I can be contacted on e-mail [protected]@hotmail.com
Complaint marked as Resolved Aug 14, 2020