The Varanium Cloud Ltd stock fell 5 percent to hit the lower circuit at Rs 49.4 on March 22 on reports that the Bombay High Court issued a non-bailable arrest warrant against the company’s promoter Harshawardhan Sabale.
According to LiveLaw website, the warrant was issued against Sabale, with April 1 a deadline, for defaulting on a debt of about Rs 49.53 crore.
The stock has been on a downtrend since October 2023, falling nearly 80 percent from its 52-week high of Rs 240.
Referring to the Livelaw report, Varanium Cloud said the matters was sub judice and pertained solely to Sabale in personal capacity. “Varanium Cloud Limited and its assets are secure and remain unaffected by the proceedings and outcomes of these legal matters,” the company told NSE on March 21.
Also Read | Varanium Cloud Q3 net profit zooms nearly 200%, revenue jumps 260%
Creditor Cherag Shah sought court’s intervention to enforce an arbitration award of $4.44 million to be paid along with a 6 percent interest from Sabale and Ogle Technologies Ltd.
The litigation stems from Shah’s claim in a technology developed by Sabale, in which Shah was an early investor.
The arbitration award was challenged by Sabale, which led to Shah initiating execution proceedings. It was on this plea the Bombay High Court passed the order, Varanium said.
The court told Mumbai Police commissioner to seek external affairs ministry’s help to request a Red Corner Notice from the Interpol to ensure Sabale's appearance in court.
The court has appointed a receiver to manage Sabale's demat accounts, including ACML Capital Markets Limited, and to seize his unencumbered shares in Varanium Cloud Limited.
The receiver was also tasked with taking possession of Sabale's flat in Pune’s Saiba Complex and symbolically taking possession of two flats in The Latitude, Pune, after considering a request from his lawyer regarding his unmarried sisters' residency.
The court prohibited Sabale from accessing his bank or investment accounts and from trading shares until further notice.
Lawyer Rashmin Khandekar, representing the creditor, had sought freezing of the accounts, citing Sabale's deliberate disobedience of the court's orders.
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