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WITHOUT PREJUDICE                                                                                                                        5th August, 2001


Ref. No. …………………….. (Please quote this ref. no. in all your correspondence in future)

To:    Shareholders / Investors / Complainants / Enquirers or Querist

Ref:   Non-delivery of your alleged share certificates

We have received your complaint through –

  1. You

  2. Stock Exchange,

  3. Through your personal visit

  4. Karvy Consultants

  5. Through SRG Info-Tech and

  6. Through our Share Dept. & Investor Services Cell

  7. Depositories

  8. Central Securities Depository Ltd.

  9. Chairman of the Company

  10. Company Law Board

  11. Council of fair business practices.

  12. District Forum

  13. Economic Offence wing – Police

  14. Finance Minister

  15. High Court

  16. Investor Protection forum

  17. Magistrate Court

  18. Managing Director of the Company

  19. Member of Parliament

  20. Ministry of Law and Company affairs

  21. National Consumer forum

  22. National Securities Depository Ltd.

  23. National Stock Exchange of India Ltd.

  24. Parliamentary Committee

  25. President

  26. Prime Minister

  27. R & T Agent of the Company

  28. Registrar of the company

  29. Registered office of the company

  30. Regional Stock Exchange of the Company

  31. Respective consumer court

  32. Securities and Exchange Board of India

  33. Secretary of company affairs

  34. Secretary and compliance officer of the company

  35. Share Department of the Company

We are sorry to inform you that in absence of the share certificate which you have alleged to have delivered to Karvy Consultants / SRG Info-Tech / Vatsa Office, we are unable to help you in the matter.

In the absence of the physical share certificate and in the absence of the relevant information on our computer data as per enclosed format communicated to you earlier (but the same is given again for your ready reference – in case you have not submitted the same, please submit the same again for quick redressal of your complaint).

Even if you have sent the same to earlier Registrars, we request you to send the same to us again.

We are sorry we will not be able to help you any further regarding non-delivery of your shares unless we receive the same from your end on urgent and top priority basis.

Lately, we have been receiving lots of complaints about fake / forged certificates printed and circulated by various unscrupulous people mostly from Delhi / Haryana areas.

Immediately on confirming the fraud the company filed a Police case with the Deputy Commissioner of Police, Crime Branch.

The Police registered case under FIR No.253 / 99 dated 30.11.99 under sections 420, 467, 470, 406. 468 and 38 against M/s. SRG Infotech India Ltd. and other wrong doers.

During the course of investigation the police has also written to all the Stock Exchanges, SEBI and NSDL, CDSL for further information. (Enclose copies of police letters to stock exchange)


Modus Operandi adopted by M/s SRG Infotech India Ltd.

M/s SRG Infotech India Ltd. printed and delivered large amount of shares of Vatsa Corporations Ltd. through various stock brokers.

Other instances of fraud done by M/s SRG Infotech India Ltd.

  1. One Fraud committed by Mr.Ashok Agarwal with M/s. Integrated Master Services Ltd. (Promoter: Mr. S. C. Khaneja) against which an FIR has been filed by them with Narayana Police Station at Delhi in May 1999.

  2. Mr Agarwal sold fake shares .of M/s. Shyam Telecom Ltd. at the counter of M/s. Integrated Master Services Ltd.. members of NSE and BSE and the payment has been made by cheque to Mr.Ashok Agarwal. An FIR has been lodged by the bonafide owner of these shares.

  3. An FIR has been lodged by NECC Financial Services P. Ltd. at New Delhi (Mr. Atul Gupta. Director) in the case of sale of Duplicate Shares of Vatsa Corporations Limited.

  4. Similarly, an FIR has been lodged by Mr. Prakash Bhatia of M/s.Vishesh Technology with the Economic Offences Wing (EOW). Delhi Crime Branch. The officer in charge is DCP Mr. Dinesh Bhatt.

  5. In another case involving MAS, a SEBI registered RTA (this company was taken over by Mr.Agarwal). an FIR has. been lodged by Mr.S. K. Agarwal (ex-partner) of Mr. Ashok Agarwal) with the Sarojini Nagar Police Station, New Delhi. The case has been registered as State –v / s- Mr Dilip Bansal & Mr. Sandeep Bansal (brothers of Mr. Ashok Agarwal).

    1. I-T raids SRG Infotec, alleges Insider Trading (reported in
      Financial Express dt 13.08.1999)

    2. I-T probes Pentafour Software for fake transactions with SRG-Infotec (as reported in Financial Express dt. 16.11.1999) and I-T probes SRG offices (as reported in Business Standard dt 8.8.1999)

You would observe from all these that SRG is a master of manipulations and the brain behind the same is Mr. Ashok Agarwal.

Their actions are resulting into losses worth hundreds of crores of rupees to the Exchequer, small investors and also to the companies whose transfer activities they are holding (refer letters dated 09-Nov-2000 to SEBI NSE and BSE).

The Faulty Modus Operandi of bad delivery settlement adopted by NSE / BSE Officials under conspiracy.

NSE & BSE to avoid auction process for the bad delivery of shares (which were introduced by the Broker Associated and connected with SRG InfoTech, their Directors and their employees) have fixed the price of Re. 1.10 for every share, which has returned and treated them as bad deliveries due to fake & forged shares printed by wrong doers.

Under the normal circumstances, if this bad delivery would have been affected through the Trading / Auction process, the price of Vatsa Corporations, would have gone up beyond Rs. 100/-.

Effectively the Brokers connected with wrong doers and Exchange Authorities have conspired jointly and deliberately suspended the above scrip at BSE and NSE for more than 12 months.

Every time the Company approaches NSE / BSE authorities for the purpose of lifting the ban on trading, NSE / BSE Authorities deliberately delay and give illusive replies.

In view of the above circumstances, unless the original share certificate is physically delivered / available with us or if you have photo copy of the share certificates (back and front) alone with following particulars, we will not be able to help you any further in this regard:


  1. Contract Notes and Bills received from Broker along with payment proof and other database such as

    1. Date of payment,

    2. Name of the bank,

    3. Cheque number details,

    4. Bank statements or

    5. Letter from bank certifying your claim that the payment is made and the same Is debited to your account and credited to sellers / Brokers account.

  1. Photocopy of front and back of your share certificate lodged with us in case where Xerox copy Is not available, details like

    1. Certificate no.,

    2. Dist No.,

    3. Name,

    4. Address and

    5. Folio no. of seller,

    6. Name and address of witness, etc.

  2. Photocopies of transfer deeds (front and back).

  3. Proof of dispatch by you through postal authorities.

  4. Proof of acknowledgement received from R&T or postal authorities.

  5. Any other communication received by you from R&T Agent or Company.

  6. Any other proof which can enable us to process your claim.

  7. Your current email address and other Contact Details such as Landline and mobile number etc.

We also advise you to make police complaint at the police station nearest to your home or office and lodge proper FIR regarding this and forward the same to us for follow up actions and justice, and take appropriate legal steps to protect your interest.

You may complain against Mr. Joshi, Executive Director and Governing Council Members. President etc of BSE., Mr Ravi Narain of National Stock Exchange (NSE) and SRG Info-Tech Ltd and Mr Ashok Agarwal. Mr. S.K. Agarwal, Mr. Rastogi and Mr Jain and all previous employees from SRG Info-Tech who were in charge of Vatsa share transfer work and who are involved in alleged fraud committed by them along with the introducing Brokers who in return have conspired with the exchange authorities at BSE and NSE and other Exchanges from where your Brokers have purchased shares and .delivered to you and swindled your money, by taking advantage of the faulty mechanism and loop holes in trading and settlement rules of the exchange.

In view of the same, you (investors) are entitled to claim damages and refund of your monies from the

  1. Brokers

  2. Stock Exchanges

  3. also from the investors protection fund maintained by Stock Exchanges

  4. Insurance Companies where your Broker and Stock Exchanges are insured.

We have all the sympathy for you but, we are unable to help you any further in this regard, however, your money may be refunded by Stock Exchange through auction process immediately, when the trading in the script is started.Kindly note that some of the top influential persons at Stock Exchange have conspired with the Brokers and suspended the trading in the script with a view to benefit these Brokers and wrong doers at the cost of investors and company.Please, therefore, take up the matter with the SEBI authorities to get the trading started so you get your money back through auction process which may be much higher than your purchase price instead of fixed price at present.

The Company has taken written legal opinion from various High Court and Supreme Court Ex-Judges and Addl. Advocate General of Maharashtra and they have advised that the Company is not in anyway responsible for any actions of the wrong doers as per Supreme Court and various High Court Judgements.

By complaining to Exchange Authorities and to SEBI against the company will not give you any fruitful results because as per the various Supreme Court and High Court Judgments the Company is not responsible for anything and these influential people and wrong doers, who have conspired with the top Stock Exchange officials, have fixed a last traded price for settlement of your claim against fake and forged shares to very much below the real price or the book value or the highest market value of Rs.160/-.

The Exchange authorities at NSE and BSE are presently settling the claim at Rs.1.10 paise for every Rs.10/- paid-up shares, whereas if the trading takes place regularly /daily then these shares will have to go in through auction process and the price for Re. I/- paid-up share may go beyond Rs. 100/-.

The original investor who have purchased these 100 shares at Rs. 10/- have now 4000 shares at his disposal (after bonus and split) and if you count Rs. 100/- per share you may get more than Rs.4 lakhs against the original investment of Rs.10/- for each share. You may note that the company has paid dividends four times for four consecutive years and the highest dividend was @ 30% per year.

Instead of complaining against the Company, the shareholder / investors should go and complain against these corrupt officials at Stock Exchanges, who are bent upon for not allowing the trading of the scrip so that the wrong doers are benefited who have conspired with Exchange officials and who, in return, have arbitrarily fixed a “settlement” price of Rs.1.10 paise and made rules which will ultimately benefit wrong doers.

The magnitude of this loss to the investors account only for this is estimated at Rs.75,000 crores (Rupees Seventy Five Thousand crores only)

If shares are listed and properly traded and if the fake and forged shares are returned through Exchange’s auction process then in that case, every investor who have purchased these shares through their respective Brokers will be benefited in lakhs of rupees and the wrong doer will be punished through auction and through the normal trading in the Exchange.


Chief – Investor Grievances Cell

Email: * web: