Jyoti CNC Subsidiary Faces French Legal Probe, EUR 4M Accounts Seized
Jyoti CNC Automation Ltd's wholly-owned French subsidiary, Huron Graffenstaden SAS, is under investigation by French authorities regarding export controls and documentation of dual-use machinery. Interim measures include the temporary restriction of the subsidiary's director general, seizure of bank accounts totaling approximately EUR 4.0 million, and two residential properties owned by Jyoti SAS. A formal judicial investigation has been initiated. Huron Graffenstaden SAS refutes the allegations and plans to contest the actions. Jyoti CNC Automation believes the current business and operations of the subsidiary remain usual and expects no adverse impact on its standalone business, which contributes over 85% of the Group's revenue.
Key Highlights
- French authorities initiated a judicial investigation against Jyoti CNC's subsidiary, Huron Graffenstaden SAS.
- Interim measures include restricting the subsidiary's DG and seizing ~EUR 4.0M bank accounts and properties.
- Allegations involve violations of EU laws concerning dual-use technology exports.
- The subsidiary refutes the allegations and is seeking legal advice to contest the actions.
- Jyoti CNC expects no adverse impact on its standalone business, which generates over 85% of group revenue.