The Hindu Business Line : ‘Misunderstanding’ takes Pyramid Saimira MD to police

Chennai, June 22 A ‘misunderstanding’ on the terms of settlement between Indiabulls and Saimira Holdings and Services Pvt Ltd, today led Mr P.S. Saminathan, Managing Director, Pyramid Saimira Theatres Ltd, to the police.

According to the company, Pyramid Saimira could not pay its dues to many, including Indiabulls, because the Income-Tax Department had frozen its accounts, which has since been withdrawn.

As a consequence, about Rs 120-crore of working capital limit could not be availed of and Pyramid Saimira’s cheques began to bounce.

Indiabulls had a warrant issued, as a result of which Mr Saminathan spent some time in the police station. While rumours said that Mr Saminathan was arrested by both the Crime Branch and Economic Offences Wing, Mr Saminathan told Business Line that he himself surrendered to the police, following the procedure to get the warrant withdrawn.

“The misunderstanding has been sorted out and both the parties have agreed to an amicable settlement,” says a press release from the company.

It says that the original loan taken from Indiabulls (by Saimira Holdings and Services Pvt Ltd) was Rs 60 crore, out of which more than Rs 40 crore has been repaid.

“We wish to state that Pyramid Saimira Group, which had suffered heavy losses in the last nine months, is on the revival path,” the release says.

The group has a lot of asset cover in the form of advances and deposits.

“We have faced income-tax problems and last week the I-T department withdrew the attachment against our overdraft/advances bank accounts, it says.

It adds that the company is going ahead with its fund raising plans.

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