VIJAYAWADA: Taking exception to the allegations of insider trading against Heritage Foods Limited, company president M Sambasiva Rao has termed the charges baseless and said the land was acquired by the company as part of its business expansion, not for any trading. He said the company was contemplating initiating legal action against those who make such false allegations.
In a press release issued on Thursday, Sambasiva Rao said they were pained to see the repetition of the allegations, in spite of the detailed clarification issued by the company on December 18, 2019.
‘The land acquired by Heritage Foods in Guntur district during 2014 is not located in any of the 29 villages of Amaravati capital area. An extent of 14.22 acres was purchased at Kantheru village during July and August 2014 for setting up our dairy factory. It is located 20 km away from the capital,” he reiterated.
According to him, out of the 14.22 acres acquired, sale registration related to 4.55 acres was cancelled during October 2014 due to certain disputes. The company now holds 9.67 acres at Kantheru village.
“If the land purchase was based on internal trading as alleged, we could have purchased it in any of the 29 villages of Amaravati capital itself and not at Kantheru village, which is away from the capital. If the land was meant for trading, we would not have cancelled the sale deed of 4.55 acres in October 2014,” he explained. Heritage Foods also purchased land during 2014 in different States and if it was involved in land trading, it would have invested all the funds in Amaravati itself, he said.