Mishtann Foods denies SEBI allegations, calls them baseless

Mishtann Foods Ltd. has issued a clarification regarding the show cause notice received from SEBI, asserting that the allegations in the notice are baseless and devoid of reality. The company emphasized that it is obtaining legal advice and taking appropriate steps to address the claims, which it believes are unsustainable in law.

The Board of Directors and management of Mishtann Foods Ltd. (MFL) do not agree with the observations made in the said interim order cum Show Cause Notice. The allegations made in the interim order are baseless and devoid of any reality, company said in exchange filing.

The company assured stakeholders that all business activities and growth plans remain unaffected despite the ongoing legal proceedings. Mishtann Foods reiterated its commitment to corporate governance and expressed confidence in emerging unscathed from this phase of confusion.

Previously, Mishtann Foods shares hit a 20% lower circuit for the second consecutive day after SEBI alleged misappropriation of Rs 100 crore through fictitious transactions. Mishtann strongly denies the claims, maintaining that its legal team is addressing the issue.

SEBI’s notice highlighted the “misrepresentation of large proportions” in Mishtann Foods’ financial statements. According to the regulator, the company inflated its sales and purchases by recording fictitious transactions involving non-existent entities. These entities were allegedly created using the names of the promoters and their relatives. In response, Mishtann Foods has denied these allegations and stated that its legal team is working to address the queries raised by SEBI.

Mishtann Foods Limited is an agro-product company founded in 1981. It is a public limited company based in Ahmedabad which primarily focuses on agricultural business. Mishtann Foods is involved in the manufacturing, processing and trading of various food grains including rice and wheat. It also provides agri-commodities such as basmati rice, wheat, dal and rock salt.