PETALING JAYA: Kamdar Group (M) Bhd, via its wholly-owned subsidiary Kamdar Sdn Bhd, is suing its former chairman Bipinchandra Balvantrai, Jayesh R Kamdar Rajnikant and contractor Yap Kim Hong for allegedly withdrawing funds totalling RM8.7mil from the company.
Kamdar, in its filing with the exchange yesterday, said it was also claiming general, aggravated and exemplary damages, compound interest and such further and other reliefs as the court deemed fit.
Kamdar Sdn Bhd filed the writ of summons together with statement of claims through the Kuala Lumpur High Court on Oct 3.
Kamdar Sdn Bhd, via its solicitors Messrs Amrit & Co, has served the same to the three defendants to initiate the proceedings on Oct 9.
Leading to this lawsuit, the Kamdar group has appointed Messrs Morison Anuarul Azizan Chew as a special auditor in March to help in its investigation over an alleged withdrawal of the said amount from its main subsidiary - Kamdar Sdn Bhd.
According to previous reports, Yap was believed to be a proxy for Bipinchandra Balvantrai, who is the cousin of Kamdar’s current managing director, Kamal Kumar Kishorchandra.
Bipinchandra is now a non-executive director at Kamdar.
The Kamdar group dispute involved Yap, who had RM5.7mil worth of shares bought under his name during the company’s listing exercise in 2005.
Yap bought 4.8 million Kamdar shares at RM1.20 apiece then.
According to reports, on March 23, 2005, a cash cheque for RM2.42mil was withdrawn, signed by Bipinchandra.
Consequently, two days later an amount of RM580,000 was withdrawn allegedly made payable to Jayesh Kumar, who was the company’s CEO from November 2004 to June 2011.
Jayesh is Bipinchandra’s nephew and a cousin of Kamal Kumar.
Collectively, this makes up the missing RM8.7mil.
Bipinchandra, who was redesignated as chairman of the group in March 2008, joined Kamdar Sdn Bhd in 1980 and became a director in 1994.
Earlier in March 2013, the group was caught in a power struggle over the direction of the company that led to Bipinchandra and Gautam Kamdar Bipinchandra, who collectively owned more than 10% of Kamdar’s stake, calling for an extraordinary general meeting to remove three directors, including Kamal.
But the move was withdrawn.
Kamdar’s latest financial results for the half year ended June 30 showed its net profit had shrunk to RM4.8mil from RM8.7mil in the same period last year on the back of RM90.9mil in revenue.
It is engaged in the provision of garment and textile business.
Kamdar Group closed unchanged at 62 sen yesterday with a market capitalisation of RM122.7mil.