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J Kumar Infraprojects features in Sebi's suspected shell companies list

The company was blacklisted by country's richest civic body – Brihanmumbai Municipal Corporation on graft charges

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J Kumar Infraprojects is among the 331 firms listed as suspected shell companies by the Securities and Exchange Board of India (Sebi).

The company was blacklisted by country's richest civic body – Brihanmumbai Municipal Corporation (BMC) on graft charges. In March, BMC issued blacklisting order wherein for the next seven years it will not be able to bid or bag any projects from the civic body.

The company has numerous metro rail construction projects for various Indian cities like Delhi, Mumbai, Navi Mumbai and Ahmedabad. Among the road projects include National Highway Authority of India's work to have port connectivity road for Jawaharlal Nehru Port.

Trading was suspended starting Tuesday as it featured in the list of suspected shell companies or 'Grade Surveillance Measure Stage VI' with immediate effect.

In a statement, J Kumar Infraprojects said it is not a shell company and "the suspicion of the regulator is uncalled for."

Kamal Gupta, executive director of J Kumar Infraprojects told DNA Money that the company has already taken up the issue with the authorities concerned, "We have already applied for revocation and have taken the subject as high priority."

"Majority of our clients are government authorities not only in Maharashtra, but also in other states. Even presently, we have several government contracts. Thus, there is no question of us being a shell company," said Gupta.

When asked if there is a cap on deposit or withdrawals on the bank accounts of the company, he replied in negative. He also clarified that the existing work orders will be executed as per schedule as only trading on the bourses has been suspended and bank accounts are operational. Even bids submitted with various authorities continue to be in fray and will not get disqualified. "Listed and unlisted, both type of companies can participate in any tendering process, suspension of trading doesn't mean we cannot bid for any projects," explained Gupta.

As on March 2017, the company had reported total income of Rs 1,466.22 crore and profit after tax was at Rs 105.51 crore.

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