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Pvt. Ltd. Companies Mushrooming Like Family Properties: High Court

IndiaGlitz [Tuesday, December 24, 2013]
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The defence counsel of Dr. Mohan Babu was given a shock by the High Court of AP in the case of the Padmasri aaward controversy when the HC commented that Private Limited companies are stemming like mushrooms from within families.

At a point in the arguments, the defence counsel of Mohan Babu Anthony Reddy suggested that his client was innocent and it was the production house that was the culprit in mentioning 'Padmasri' before his client's name in the opening credits. The Judge asked who was the counsel of the production house '24 Frames Factory Pvt. Ltd.,' he was stunned to hear that he was indeed representing the production house too. The court was particularly harsh on the counsel asking him questions like the directors, their stakes and whether Mohan Babu himself was a stakeholder in it etc.

It was then the Judge commented about the Pvt. Ltd. Companies turning out to be mere family held firms and directed the company's IT returns for a scruitiny and warned the counsel Anthony Reddy that if any discrepencies are found, the company will be duly prosecuted apart from being slapped with contempt of court too.

The court directed the actors Mohan babu and Brahmanandam to return their 'Padmasri' awards in lieu of their misusage of the title as a prefix to their names in the opening credits of a movie 'Denikaina Ready'.




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