Everonn Education MD arrested

Everonn Education MD, P. Kiahore was arrested for by given bribe to an income tax official. It resulted a panic selling in the everonn shares on these days. According to the sources, P. kishore offered Rs 50 Lakhs to the income tax official to conceal his taxable income of Rs 116 Cr. It was shocking news for the market. It is said that Mr. Kishore was charged by criminal conspiracy and the relevant provisions of the Prevention of Corruption Act. Andassu Ravinder is the additional commissioner of income tax, also arrested by the CBI. Two additional commissioners of income tax were also arrested according to the CBI sources. In addition Utam Chand Bohara was arrested for help the Income tax officer to shift the bribe amount.

Everonn appointed Susha John, the Chief Executive Officer to exercise the powers delegated to the managing director. Nikhil Gandhi from Sea Kings Infrastructure is also included in the management.  The corruption in India is reflected by this arrest. Everon Education was the dearest stock of stock market analysts. Now the things are changed. It is also shocking news that an educational institution like Everonn acted like this. According to CBI Press release, Mr. Kishore met the officer many times and given him the money in the night, Monday 29th Aug 2011. The bribe money and 1.8 Kg Gold was caught from the house. According to the company, the business will go as usual.

The company has also joint venture with National Skill Development to impart module to students. There was a raid by the Andasu’s team in the Everonn office. It brings out a concealed untaxed amount of Rs 116 Cr.  Mr. Kishore who met a chartered accountant named T Banu Sekar to arrange a meeting with Andasu. Andasu asked Kishore to meet him in Mumbai on August 10. He was arrested when he shifted the money to another location with the help of Bohra. Mr. Andasu was under the watch list of CBI from the last five years. CBI did not name the company in the press release.

The news was come after the close of Tuesday’s (1/9/2011) trade. Everonn shares were closed Rs 439 on 30th Aug 2011. On 7/9, the stock was trading in the levels of Rs 250. EPS of the company is 39 and Company is now trading in the P/E of 6. Fresh investment in this company is not recommended.

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