September 29, 2005
PR No. 129/2005

Order in the matter of Consortex Karl Doelitzsch (India) Ltd. (Formerly Andhra Pradesh Power Tools Ltd.)

SEBI vide order dated September 29, 2005 has issued the following directions in the matter of Consortex Karl Doelitzsch (India) Ltd. (Formerly Andhra Pradesh Power Tools Ltd.):

a) Consortex Karl Doelitszsch (India) Ltd., formerly known as Andhra Pradesh Power Tools Ltd. and its directors viz. Shri M.Sudhakar Rao, Shri V.Manohar, Shri K.Satyanarayan, Shri S.Surya Prakasa Rao and Shri G.Krishna Mohan shall not issue any further shares or alter its share capital in any manner till further directions. They are also prohibited from accessing capital market or dealing in securities, in any manner, directly or indirectly, till further orders in this regard by SEBI.

b) Consortex shall submit audit report audited by a qualified Chartered Accountant or a practising Company Secretary on the reconciliation of the records of dematerialized securities with all the securities issued by Consortex within 15 days from the date of this order. 

c) Ikon Vision Pvt. Ltd. Registrar and Share Transfer Agent is hereby directed not to transfer shares of Consortex held by the above mentioned directors directly or indirectly till further directions.

d) APIDC (A corporation of Government of Andhra Pradesh) is directed to retain all the original share certificates of Consortex in its possession in safe custody. They are also directed not to part with any of the shares till further directions. 

All the above directions shall take effect immediately and shall be in force until further orders. 

SEBI had received complaints from APIDC (A corporation of Government of Andhra Pradesh) against Corsortex Karl Doelitszsch (India) Ltd. Based on the complaint and preliminary investigation, it was prima facie found that Consortex had issued fake certificates of around 15,62,500 shares. This renders Consortex and its directors guilty of violation of Regulation 3 and Regulation 4 (2)(h) of SEBI (Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.


It was observed that the report on shareholding pattern filed by Consortex regarding the shareholding of APIDC at 8,00,000 shares under the heading "Banks and Financial Institutions", whereas, as per the records of Ikon, the shareholding of APIDC(A corporation of Government of Andhra Pradesh) is nil. It is therefore seen that the report on the shareholding pattern for the quarter ended June 30, 2005 filed by Consortex with the exchanges is false and misleading as the same does not tally with records / information furnished by Ikon. This holds them in violation of provisions of listing agreement. 

Further neither the company nor the registrar have reconciled the records of dematerialized securities with all the securities issued as required under Regulation 55 of SEBI (Depositories and Participants) Regulations, 1996. Also the differences observed in the issue listed and the capital held by depositories in dematerialized form did not appear to have been brought to the notice by the company or by the registrar. 

In view of the aforesaid and with a view to protect the interest of investors, Shri G. Anantharaman, Whole Time Member, SEBI has passed the above order.
 
 
Mumbai

September 29, 2005

For full copy of order against CONSORTEX KARL DOELITZSCH (INDIA) LTD., click here.

For full copy of order against G.KRISHNA MOHAN, click here.

For full copy of order against IKON VISIONS PVT.LTD., click here.

For full copy of order against K.SATYANARAYAN, click here.

For full copy of order against M.SUDHAKAR RAO, click here.

For full copy of order against S.SURYA PRAKASA RAO, click here.

For full copy of order against V.MANOHAR, click here.