Kerala High Court Issues Notice to Sabu M Jacob Over Petition on Kitex Financial Transactions

Kochi: A petition has been filed in the Kerala High Court seeking action over the financial transactions of Sabu M Jacob’s Kitex Garments Ltd and its subsidiaries. Shareholder A V Mohammed Firdous filed the petition, alleging that Kitex’s financial transactions through the US are suspicious.

The court has issued notices to Sabu M Jacob and the Securities and Exchange Board of India (SEBI). The petition will be considered on October 27.

The petitioner has sought action against Kitex Garments and Kitex Children’s Wear. The petition alleges that Kitex’s unusual commission transactions are causing financial losses to shareholders.

The petition also seeks an investigation into a complaint previously submitted to SEBI regarding the matter. It states that the GST authorities have recommended action against Kitex over the commission transactions and alleges that the proposed merger of Kitex Children’s Wear with the textile division could adversely affect shareholders.