Eclipse Looms Over Chandamama: Bombay HC Orders Its Sale Over Parent Company’s TroublesChandamama Magazine (@VividBharthi/Twitter)

Intellectual-property rights of Chennai-based popular kids magazine Chandamama have been ordered to be put on sale by Bombay High Court, reports The New Indian Express.

Founded in 1947 the magazine is currently valued at Rs 25 crore.

Its rights are currently held by the magazine’s parent company Geodesic Ltd which is facing liquidation over allegations of misappropriation of funds and fraud. Three Geodesic directors Kiran Prakash Kulkarni, Prashant Mulekar and Pankaj Shrivastav are currently in jail.

Geodesic had acquired Chandamama for Rs 10.2 crore in 2007 from the son of its co-founder B Nagi Reddy.

The order passed by Justice S J Kathawalla stated that,“ the directors of Geodesic have appeared before the court and given their unconditional consent for the possession and sale of tangible and intangible assets of Geodesic Ltd, including its subsidiary companies (both Indian and overseas companies) in favour of the Enforcement Directorate (ED) as ordered by the court of law”.

“….the issue as to whether the official liquidator/creditors of the company are entitled to receive the sale proceeds deposited with the PML Court as proceeds of crime, is kept open,” stated the order.

In June 2014 the Bombay High Court had taken possession of Geodesic’s assets after the company failed to pay $162 million to its Foreign Currency Convertible Bond (FCCB) holders.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement