November 20, 1998
PR No. 318/1998

Prosecution launched by SEBI 
Investigation, Enforcement & Surveillance Dept.

SEBI has filed criminal complaint in the Court of Additional Chief Metropolitan Magistrate at Ahmedabad under Section 621 of the Companies Act, 1956 for the violation of the provisions of Sections 113 and 207 of the said Act against M/s. Indo American Credit Corporation Ltd. having its Registered Office at IOL House, Near Swati Apartment, Opposite Central Bank Lane, Ambawadi Bazar, Ahmedabad 380 015 and Dr. Amit N. Shah, its Chairman, Dr. Dipti Shah, Dr. Lalitaben Shah, Shri Y.D. Desai, Shri Maheshbhai Shantilal Patel, Shri Rajan Mehta, Shri Akbarkhan Nusurullahkhan Pathan & Shri Dipak Waljibhai Choudhary, who are/were the directors of the Company when the offence of non-redressal of investors complaints regarding non-despatch of share certificates after their allotment and/or lodgement for transfer and non-payment of dividend after its declaration within the stipulated time. 
 
The complaint has also been filed under Section 24 against the Company and its present directors in terms of Section 27 for not forwarding the information asked by SEBI under Section 11(2)(i) & (la) of the SEBI Act, 1992. 
 
The Investors Grievance Redressal Record of M/s. Indo American Credit Corporation has been very poor and there were large number of investor complaints pending against it. Inspite of number of opportunities given by SEBI to the Company and its directors to make the default good, they have failed to come out with a positive response. SEBI had requested Company time and again to forward certain information in the interest of investors in general, but the Company did not respond to this and thus, it has been observed that the Company and its management has remained indifferent to the investors grievances.