Over allegation of cheating, fabrication and forgery of documents.
Jayaram Banan, promoter and founder of Sagar Ratna has filed an FIR against the restaurant's current management led by private equity firm India Equity Partners (IEP) over allegations of cheating, fabrication and forgery of documents.
Banan has resigned as chairman of Sagar Ratna as per the agreement between him and IEP inked three years ago which ended in June. Now, as part of the same agreement, he wants to sell off his 22.7% equity in Sagar Ratna at current valuations.
IEP holds 73-75% of Sagar Ratna and the Banan family owns the rest. Banan lodged an FIR against IEP partners Sid Khanna and Ravi Sampat as well as Sagar Ratna Restaurants CEO Murli Parna based on the accusations cited above. However, IEP in turn has accused Banan of violating their contract by starting a restaurant chain Shri Ratnam. According to an IEP spokesperson, “This is a spurious and false FIR. We have lodged multiple civil cases against Banan and associates, which include severe breach of non-compete, interference in the operation of Sagar Ratna restaurants and use of force. He has political patronage from the highest levels in the Congress party, and we have taken this matter to the highest governing authorities.”