The Ruby Mills Limited has informed the Exchange about General Updates
RUBYMILLS · price
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The Ruby Mills Limited has disclosed that the Enforcement Directorate (ED) has filed a Prosecution Complaint under the Prevention of Money Laundering Act (PMLA) before the City Civil and Sessions Court, Mumbai, naming the company and its Managing Director Mr. B.M. Shah. This relates to an old dispute involving Shreem Corporation (formerly Rajput Retail Ltd or RRL), SBI, and others dating back to FY 2011-12. The company had voluntarily paid ₹101 crores to the Resolution Professional of Shreem Corporation and claims it is a victim, not an accused, in the underlying fraud allegedly committed by RRL in connivance with bank officials. The ED has provisionally attached a bank balance of approximately ₹2.6 crores (₹2,59,90,569) held with Bank of India, representing alleged interest earned on certain instruments. The company is engaging senior legal counsel to defend itself and seek discharge.
Short-term negative sentiment is possible due to the PMLA naming of the company and its MD, plus the ₹2.6 crore provisional attachment of bank balance. However, the quantum of attachment is small relative to the company, and management is contesting the allegations while positioning itself as a victim. Investors should watch for legal updates on the discharge petition, as a favourable outcome could limit downside while an adverse ruling may increase regulatory and reputational risk.