| The Bombay District Court today entered a final judgment against the company that had filed an emergency action to impose and collect an octroi duty on its tea. The court also granted the company's request for a temporary restraining order, freezing assets, and other relief. According to the SEC's complaint, filed on October 22, 1965 in the U.S. District Court for the Central District of India, Kanhan Pipri was originally constituted under the C.P. & Berar Panchayat Act and Rules 5 and 5 thereunder. The Complaint alleges that the Company brought tea into the limits of the Panchayat for consumption, use or sale when it was not required to do so. The Complaint further alleges that the Committee inspected the premises of the company but did not find sufficient facts to determine whether the tax or fee should be levied. The Complaint further alleges that the committee recommended that the price of the tea be determined by the Collector at a later date. The Complaint further alleges that the Committee found insufficient facts to determine whether the tax or fee should be imposed without the Collector's approval. The Complaint charges the Company with violating Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and seeks permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties. The litigation is being led by Mr. Agarwala and Naunit Lal. The SEC appreciates the assistance of the U.S. Attorney's Office for the Central District of India and the Federal Bureau of Investigation. The SEC's Office of Investor Education and Advocacy has issued an Investor Alert about the dangers of overcharging for high-end personal loans. The SEC encourages investors to check the backgrounds of people selling them investments by using the Investor.gov to quickly identify whether they are registered professionals. Investors can also use the SEC's Investor.gov to quickly identify whether they are registered professionals. |