Raffles Education clarifies media reports regarding charges filed over dispute in India

MAINBOARD-LISTED Raffles Education Corporation : NR7 0% (REC) on Wednesday (Apr 20) sought to clarify media reports regarding a charge sheet filed against the company over its dispute in India.

In a bourse filing, REC noted an article that said the Delhi Police's Economic Offences Wing (EOW) had filed a charge sheet against its directors and top management, over its dispute with Educomp Group and Jai Radha Raman Education Society.

The article had also noted allegedly attempts by an REC unit to grab the education society’s land and buildings in India, as well as a supposed “criminal conspiracy” to defame Educomp Group, through forged evidence and documents.

REC said “there is no basis for any of the allegations” referred to in the article, and that it has not received any summons or notice after the charge sheets were filed. It noted that the article itself had suggested that the concerned court has not taken cognizance of the charge sheet as of date.

Adding that the article was published without seeking comment from the company, REC said it was taking legal advice to respond to both the article and the allegations.

The article said the EOW has booked REC chairman Chew Hua Seng, his wife Doris Chung, his son Chew Han Wei, legal director John Tham, independent directors Lim How Teck and Gan Hui Tin, then-independent director Teo Cheng Lok John, non-independent director Joseph He, and the corporation’s India representative Saurabh Sharma.

REC said it “believes that the allegations in the article are a response to the pending disputes” it has against Educomp Solutions and its units.

It noted that an arbitration tribunal in India had passed an arbitration award against Educomp previously, and awarded REC damages of around 163.2 million rupees (S$3.1 million), of which Educomp has to-date failed to comply with. The arbitration proceedings were regarding breeches over a share purchase agreement.

Shares of REC closed up 1.5 per cent or S$0.001 at S$0.067 on Wednesday.