While Kazi Aviation is claiming non-payment as the reason, Concurrent is saying that the company's name was not included in various licenses by Kazi Aviation as per an agreement
Concurrent (India) Infrastructure Ltd's game of moving what seems to be false information with the stock exchanges and investors continues unabated. The latest in the series is a cancellation of its deal with Kazi Aviation & Travel Services due to non-funding as per a previous agreement.
Earlier in March, Concurrent announced that it had bought a majority stake in Kazi Aviation for an undisclosed sum. However, Kazi Aviation, an aviation service provider, has cancelled the memorandum of understanding (MoU) signed between the two companies as Concurrent has not infused any funds into the aviation business as per the terms and conditions of the agreement.
Confirming the cancellation of the deal, Dr Hamid Abdulaziz Kazi, chairman, Kazi Aviation, said, "We were supposed to get Rs1 crore upfront for purchase of various ground handling equipment and as royalty. We issued a good number of shares on preferential basis to Concurrent. However, they did not pay us any money. Therefore we decided to terminate our MoU."
Fayyaz Shaikh, executive director, Kazi Aviation said, "Concurrent has misused our company and business contacts. It was our company that was instrumental in awarding three projects, the Sikkim power project (read more: http://www.moneylife.in/article/8/6290.html), the Sri Lanka land deal and the MoU with Prince of the Kingdom of Saudi Arabia for a joint venture in ground handling services in Saudi Arabia."
According to Mr Shaikh, Concurrent could not even pay the licensing fees in Saudi Arabia. "The company has a habit of just making announcements, but there is nothing on the ground level. Even for the Sikkim power project, which was in the pipeline, the company went ahead and declared it. I think Concurrent is only interested in raising money from the market through announcements," he said.
However, K Sudhir Babu, chairman and managing director (CMD) of Concurrent has a contradictory view. He said, "As per our deal with Kazi Aviation, the company was supposed to include Concurrent's name in its licenses, especially for the maintenance, repair and overhaul (MRO) license at Chennai. However, it did not. It was repeated with all licenses related with the Director General of Civil Aviation (DGCA)."
"Concurrent has asked Kazi Aviation to return the token amount of Rs5 lakh as the deal fell through," he said.
The Concurrent CMD said that the company is in final discussions with other MRO services providers from Hyderabad, he said that he hopes that this (new) deal would be more beneficial rather than the Kazi Aviation deal.
Similarly, Kazi Aviation has also found another partner, US-based Arjay Global Ltd, which has agreed to invest Rs10 crore for various aviation activities and aviation fuel supplies, Dr Kazi said in an email.
Interestingly, there is an error while accessing the home page of the Kazi Aviation site. However, the other pages are loading properly.
Compucom Software Ltd said it won an order worth around Rs10.4 crore from the Rajasthan Council of Elementary Education.
The company will provide computer aided learning programme (CALP) in 836 government schools of Rajasthan.
On Monday, Compucom Software shares ended 6.3% down at Rs37 on the Bombay Stock Exchange, while the benchmark Sensex gained 1.6% to 19,906 points.
Nexxoft Infotel Ltd said it won an order worth Rs15.5 crore from an international hotel chain for providing security solutions.
The company will use its state-of-the-art security solution package for its properties mainly based in the Middle East. The order will be executed in phases over 15 months, it said in a regulatory filing.
On Monday, Nexxoft Infotel shares declined 1.4% to Rs180 on the Bombay Stock Exchange, while the benchmark Sensex gained 1.6% to 19,906 points.