| On September 13, 1963, the Madras High Court entered a final judgment against Purushottam Raju in a civil action brought by the United States Attorney's Office for the Southern District of New York. The court held that there was no statutory obligation to recover sales tax due from a dealer under the Madras General Sales Tax Act, 1939. According to the court's order, as part of its investigation, Raju purchased a business under the name All India Trading Company under the name All India Trading Company under the name All India Trading Company without being assessed to sales tax in respect of transactions of sale which took place before the transfer of the business. As alleged, however, the registration and licensing provisions of the Act do not apply to dealers who are not a party to the scheme of the sales tax. The court found that Raju was not liable to pay sales tax under the charged provisions of the Act. The court also ruled that the amount of any return on the property of the purchaser is determined by the amount of the return paid to the seller. The court further ruled that the amount of any return on the property of the purchaser is determined by the amount of the return paid to the seller. In a parallel action, the U.S. Attorney's Office for the Southern District of New York today announced criminal charges against Raju. The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, charges Raju with violating Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and seeks permanent injunctions, disgorgement plus prejudgment interest, and civil money penalties. The SEC's investigation was conducted by Sanjay Wadhwa and supervised by R.K.P. Singh. The litigation will be led by Mr. Ram Reddy and Mr. Ganapathy Iyer. The case is being supervised by C.J. and Ramakrishnan. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York, the Federal Bureau of Investigation, and the Department of Justice. |