Shareholders of Raymond Ltd rejected the sale of apartments in the company’s headquarters JK House to certain promoters.

Chairman of the company Gautam Singhania had urged shareholders to vote against the resolution as the sale of the apartments would cause losses to the company as a whole.

Four duplex flats were let to four members of Gautam Singhania’s immediate family, including his father Vijaypat Singhania and cousin Akshaypat Singhania from 1994 onwards at a rent of Rs 7,500 per month per flat.

An agreement was signed that these flats would be sold to the tenants at Rs 9,200 per sq. ft after JK House was renovated by Raymond.

The agreement was rejected by shareholders today, even though the tenants have gone for litigation on the matter.

“Today at the 92nd Annual general meeting of the company held at its registered office in Ratnagiri, the company had put forth all relevant facts pertaining to tripartite agreement between the company and related parties, with respect to apartments in J.K. House for shareholders considered decision making. The shareholders voted against the resolution,” Raymond Ltd said.

Commenting on the development, Gautam Hari Singhania, Chairman and Managing Director, Raymond Ltd said “I am happy with the outcome of voting against the resolution as this decision by shareholders is in the best interest of the company and shareholders and is aligned to my personal opinion on this issue expressed earlier.”

“With sustained efforts towards innovation and zest for quality, the renewed growth focus of the company is to revitalize the core business of textiles and high growth in its apparel business. The company is adapting an asset-light model for retail expansion in smaller towns for increased market penetration by leveraging the brand equity thus ensuring better value creation,” the textile maker said.

Last week, the management said that the audit committee and board of directors decided that the matter should be placed before the shareholders after disclosing all relevant facts, for their opinion and vote.

Gautam Singhania abstained from voting on the resolution.

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