Three promoters of Regaliaa Realty, including Chairman & Managing Director D Sudhakara Reddy, have offered to resign from the board after Karvy Financial Services transferred to themselves the majority shares that had been pledged with them, according to information provided by the company to the BSE.
At the board meeting last week the chairman had explained that the promoters had pledged 55.56 per cent shares held by them as additional security for a project loan on February 24, 2011.
Karvy Financial Services invoked the pledge and transferred the shares in its favour “without informing the individual shareholders or the company on February 16, 2012,” according to the announcement. Following the transfer, Reddy’s holding had dropped to 4.63 per cent while that of the other promoters Usha Reddy and Deeptha Reddy fell to zero.
The promoters have written to the company asking it to recover the value of their shares along with interest from the date of transfer.
Erratum
With respect to the report titled ‘Regalia promoters offer to resign after Karvy Financial invokes pledge’ (dated December 29), Sudhakar Reddy, former CMD of Regalia, has clarified that it is incorrect to say the residential project The Ferns “did not take off”. Most units have been sold and the project is already under the management of a residential association. The news copy has been modified to remove a reference to The Ferns project.
The error is regretted.