Forgery cloud over top execs of Original Choice whisky

The Andhra Pradesh police have registered a case against John Distilleries, the Bangalore-based spirit company that produces Original Choice whisky, reports the media. The case has been filed on a complaint by the Hyderabad-based Prag Distilleries, on charges of cheating and dishonestly inducing delivery of property and forgery.

The police registered the case against the chairman of John Distilleries and senior officials of the company, after a magistrate���s court, which heard the complaint from Prag Distillers, directed the police to investigate.

The police, after the preliminary investigation, filed the FIR naming senior officials of the company. ET has a copy of the FIR. A senior official of John Distilleries in Mumbai declined to comment.

Among several charges levelled by Prag, one is about an allegedly forged memorandum of understanding between the two companies, for acquisition of the Prag distillery by John Distilleries.

The allegedly forged MoU, according to the complaint, was created by the accused for defeating the time limit of 60 days mentioned in the MoU for completing the transaction, and bypass the 60-days expiry time of the MoU.

The MoU originally signed has provisions for forfeiting the amount paid in advance if John Distilleries could not comply with requirements mentioned in the MoU in 60 days.

The complaint also mentions that a sum of Rs 3 crore has been already been paid by John Distilleries to Prag following the signing of the MoU.

John Distilleries also had a lease and licence agreement between the two companies.

According to the Prag complaint, the MoU allegedly signed on April 11, 2007, was dishonestly created to defeat the time limit of 60 days mentioned in the actual MoU dated February 22, 2007. Prag Distillery is based in Hyderabad.

It has a bottling unit of India-made foreign liquor. John Distiller���s Original Choice whisky is the largest-selling single brand in Karnataka.

The FIR has named Paul P John, KK Srinivasan, executive director, Sridhar Pongur, vice-president, R Srinivasan CFO, and others.