8K Miles Accuses Two Brokers Of Illegally Transferring Promoter Shares  

8K Miles Software Services Ltd. alleged that two brokers illegally transferred its promoter’s shares representing an 8.42 percent stake in the information technology company without his consent.

About 25.7 lakh shares held by promoter Suresh Venkatachari in his demat accounts with Quantum Global Securities Ltd. and Kumar Share Brokers Ltd. were wrongfully and illegally transferred through off-market transactions on various dates to various parties without his knowledge or consent, the company said in an exchange filing. At today’s closing price, the shares are valued at Rs 34 crore.

Venkatachari has taken legal action and also filed a police complaint on Sept. 17 against the brokers for “fraudulent and unlawful transactions”, it said. He held 55.80 percent stake in the company as of June, according to filings.

Both the broking firms are yet to respond to BloombergQuint’s emailed queries.

That comes as shares of 8K Miles Software Services have plunged nearly 85 percent this year. Most of the value has eroded since April when Chennai-based GHG Associates Chartered Accountants resigned as auditors of another related company with Venkatachari and RS Ramani, another promoter of 8K Miles Software, on its board. The auditors alleged 8K Miles Media Pvt. Ltd. misused the audit firm’s letter head, seal and signature of one of the audit partners. The listed 8K Miles Software has advanced loans to the 8K Miles Media group.