Aruna Hotels Limited, the parent company of Pharos Hotel, is embroiled in a massive financial scandal involving alleged manipulation of over ₹100 crores, affecting 22,000 shareholders. The company’s top executives, including Managing Director Radhaswamy Venkateswaran, have been accused of involvement in the scandal.
The accused individuals, who have been shrouded in mystery, include:
- Freeda Gnanaselvam Kanagiah, Non-Executive Director
- K Lakshmi, Co. Secretary & Compliance Officer
- Muralidharan Ramasamy, Non-Executive Non-Independent Director
- P Nagaraj, Chief Financial Officer
- R Rajkumar, Non-Executive Non-Independent Director
- Suyambu Narayanan, Independent Non-Executive Director
Their lifestyle and past business transactions have sparked concerns about potential criminal connections, leaving shareholders and investors stunned.
The Mumbai High Court’s decision to hand over the case to SEBI (Securities and Exchange Board of India) raised hopes for justice and accountability. However, SEBI’s announcement to settle the case with a mere ₹2 crore fine has sparked outrage and raised questions about the regulator’s effectiveness.
Shareholders have lost faith in SEBI, and the incident has tarnished the regulator’s reputation. The question remains: Can SEBI be trusted to protect investor interests?
This incident highlights the need for greater transparency and accountability in corporate governance and regulatory oversight. The public demands answers and reassurance that those responsible will face justice.
A closer look at Pharos Hotel’s financial parameters reveals:
- Revenue: ₹25.14 crores (2020-21)
- Net Profit: ₹1.43 crores (2020-21)
- Total Assets: ₹43.67 crores (2020-21)
- Total Liabilities: ₹23.45 crores (2020-21)
The company’s principal business activities include hospitality services, hotel operations, food and beverage services, and conference and banquet facilities.
Aruna Hotels Limited was incorporated in 1985, and Pharos Hotel was launched in 2005 as a unit of the company.
The company has transactions with related parties, including Radhaswamy Venkateswaran, Freeda Gnanaselvam Kanagiah, and K Lakshmi.
Aruna Hotels Limited is involved in several legal cases, including a case against SEBI regarding alleged financial irregularities and a case against shareholders regarding disputes over dividend payments.
Furthermore, the company has delayed payments to MSME suppliers, with an average delay of 120 days and a total overdue amount of ₹50 lakhs (as of 2022).
The settlement amount of ₹2 crore is a mere slap on the wrist, considering the magnitude of the scandal. Shareholders are demanding a thorough investigation and strict action against those involved.
The incident has also raised concerns about the lack of effective corporate governance and regulatory oversight in India. The public is losing trust in regulatory bodies, and it’s essential to restore this trust.
In conclusion, the Aruna Hotels Limited scandal is a wake-up call for regulatory bodies and corporate India. It’s essential to ensure transparency, accountability, and effective governance to protect investor interests and maintain public trust.
The incident raises several questions about the effectiveness of SEBI and the lack of corporate governance in India. Why did SEBI settle the case with a mere ₹2 crore fine? Why are the accused individuals still not facing strict action? Why are the related party transactions not being investigated?
The public demands answers to these questions, and it’s essential for SEBI and the government to take strict action against those involved. The incident should be thoroughly investigated, and those responsible should face justice.
The Aruna Hotels Limited scandal is a reminder that corporate governance and regulatory oversight are essential for protecting investor interests and maintaining public trust. It’s time for regulatory bodies and corporate India to wake up and take action.
By Anusmita Bhatta
Reporting for,
TRUE TO LIFE News Media Pvt Ltd
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