Singh bros deliberately imperiled Religare Finvest to siphon off money | WeForNews | Latest News, Blogs Singh bros deliberately imperiled Religare Finvest to siphon off money – WeForNews | Latest News, Blogs
Connect with us

Blog

Singh bros deliberately imperiled Religare Finvest to siphon off money

Published

on

Ranbaxy Shivinder Singh

New Delhi, Oct 19 : Singh Brothers — Malvinder Mohan Singh (MMS) and Shivinder Mohan Singh (SMS) — were the lynchpins in the Rs 3,000 crore Religare Group fraud.

The FIR in possession of IANS describes the modus operandi of how the money was siphoned off.

The construct was as follows: The same company was funded with equal or higher amount on the day payment was received from it towards previous dues. In some cases, it appears that ledger entries were done on the earlier dates, but repayments were received on the same day or in a time span of 1-2 days when the same or some other companies were funded.

So, the whole thing assumed a rolling sort of plan, where money came from dues and then repaid elsewhere. It was a calibrated plan which though cut to cut worked like clockwork. Such was the level of chicanery that the two brothers, along with CEO Sunil Godhwani, practised that they deliberately imperiled Religare Finvest so that the money siphoning operation ran without interference.

Here is the architecture: For instance, on June 17, 2009, Rs 34 crore was received in total from Blue Line Finance, GYS Real Estate, Ligare Aviation, Ligare Voyage, Linear Commercial and Sharan Hospitality and on the very same day, Rs 54 crore was funded to Dion Global, Religare Technova Business Intellect and Religare Technova IT Services.

On August 17, 2009, Rs 200 crore was funded and repayment of Rs 100 crore was received from Religare Financial Consultancy. On March 30, 2010, Rs 36 crore was extended to nine companies and on the same day, repayment of Rs 32 crore was received from six other companies except Ligare Aviation from which repayment of Rs 13 crore was received and to which Rs 14 crore was extended on the same day.

On January 31, 2011, repayment of Rs 175 crore was received from Adept Creation, Leon Realtors, SVIIT Softwares and Vectra Pharmaceuticals and on the very next day, i.e. on February 1, 2011, Rs 174 crore was extended to Ligare Aviation, Oscar Investments, Religare Comtrade, RHDFC and RWL Health World.

A copy of the internal report based on inquiries by Religare Finvest, the complainant company, shows the firm’s exposure on account of the Corporate Loan Book (CLB) to the above mentioned related/friendly borrower entities is to the tune of Rs 2,397 crores.

While the aforesaid transactions had been taking place for sometime by way of round-tripping of funds, the loans were purportedly serviced. However, it appears that when the promoters realised that they would lose control over REL and its subsidiaries (including the complainant company), they caused the complainant company to extend loans, but then willfully defaulted on these loans.

Due to the various defaults on account of the CLB, RFL initiated legal proceedings under the Insolvency and Bankruptcy Code, 2016, against these entities in the NCLT. Before the NCLT, seven of the said borrower companies, which had been extended loans under the CLB, filed replies on solemn affirmation which shockingly is an admission of financial fraud, cheating, criminal breach of trust, money laundering, conspiracy and abetment in respect of the subject unpaid unsecured loans/CLB transactions.

While these entities have intentionally tried to give vague replies, it is clear from all their replies that they knowingly were part of a criminal conspiracy to siphon away funds to the tune of hundreds of crores from the complainant company.

It is believed by the complainant company (on the basis of internal inquiries) that five of these entities — A&A Capital Services Limited (A&A), Shri Dham Distributor Pvt Ltd (earlier known as Abhiruchi Distributors Pvt Ltd), Annies Apparel Pvt Ltd (Annies), Gurudev Financial Services Pvt Ltd (Gurudev), and Tara Alloys Limited (Tara) — are related to and controlled by N.K. Ghoshal, the stockbroker of MMS and SMS.

The following submissions have been made by the aforesaid N.K. Ghoshal controlled entities before the NCLT: A&A Capital Services Pvt Ltd. A&A was used as a medium to transfer monies and was promised a fee for facilitating the transaction. It was an agreed understanding that the transaction money will not be demanded back. It is for the same reason that loans worth several crores were advanced to entities with authorised capital of Rs 5,50,00,000 and paid up capital of Rs 5,49,95,000 without any diligence, security, documentation or security and merely on the basis of a one pager document purportedly called as Memorandum of Understanding. S

Substantial sums were transferred to three entities, i.e., Vitobha Realtors Private Limited (Votobha), Devera Developers Private Limited (Devera) and Best Health Management Pvt Limited (Best), which are entities eventually controlled by SMS and MMS and they act as the alter egos of these companies.

It is evident from the above that A&A admits receipt of money; it admits that since the inception of the transaction, the intention was not to repay the loan to RFL, and conspiracy to divert the loan to third parties which allegedly used the monies to repay their loans to RFL.

As planned in the conspiracy, the loan advanced to A&A was never repaid, and it appears from A&A’s reply that it colluded with entities like Artfice, Best, Vitobha and Devera to siphon away money from RFL, with the intention of never to repay the said unsecured loan and thereby causing a wrongful loss to RFL, which has been deceived and cheated by the directors/persons controlling A&A (which in addition to its directors at the relevant time is believed to be N.K. Ghoshal) and allegedly by and in collusion with persons controlling Artifice, Best, Vitobha and Devera (which in addition to their directors are believed to be SMS and MMS) and persons in control of the management and affairs of RFL, including the erstwhile promoters.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Blog

Covid-19 corollaries on the dairy sector: CRISIL

Overall, demand for milk and dairy products would be lukewarm in the near term, so prices are unlikely to boil over, according to the report.

Published

on

dairy industry

New Delhi, May 26 : Supply chain disruptions in the early weeks of the nationwide lockdown, and bread-and-butter issues for hotels, restaurants and cafes, have materially reduced demand for dairy products.

This is despite supply of most dairy products continuing during the lockdown, since they are categorised as essentials.

The shuttering of hotels and dine-ins has also dried up off-take of skimmed milk powder and khoya.

According to report by CRISIL Research on the state of dairy industry and supply chains, products that can’t be made at home easily – such as cheese, flavoured milk and also khoya – haven’t found their way back to the dining table in the same quantities as before the lockdown.

Demand for ice creams, which usually peaks in summer (accounting for 40 per cent of annual sales) has just melted away. Rural areas, which are feeling the income pinch more, seem to be staying off butter and ghee, the report by global analytics firm has said.

To be sure, since the third week of April, supply chains have turned smoother, so demand for staples such as milk, curd, paneer and yogurt are expected to see a quick rebound, leading to on-year expansion in sales, CRISIL said.

The pandemic, however, may sour the business for unorganised dairies because of pervasive contamination fears.

Conversely, as consumers shift, revenues of organised dairies and packaged products should fatten.

Overall, demand for milk and dairy products would be lukewarm in the near term, so prices are unlikely to boil over, according to the report.

Large brands such as Amul and Mother Dairy had already hiked retail milk prices by 4-5 per cent last fiscal. They may not serve an encore.

Continue Reading

Blog

445 people died from Australia bushfires smoke: Experts

Melbourne, Sydney and Canberra all had periods where they had the worst air quality in the world as a result of the smoke.

Published

on

By

Arogya Setu App

Canberra, May 26 : Smoke from Australia’s devastating 2019-20 bushfires killed at least 445 people, health experts revealed on Tuesday.

Fay Johnston, a public health expert from the Menzies Institute for Medical Research at the University of Tasmania, told the bushfire royal commission on Tuesday that her team estimated that 445 people died as a result of the smoke that blanketed much of the nation’s east coast, reports Xinhua news agency.

It takes the total death toll from the 2019-2020 bushfire season, which has been dubbed the “Black Summer”, to nearly 480 after 34 people lost their lives directly.

According to modelling produced by Johnston and her colleagues, 80 per cent of Australians were affected by the smoke at some point, including 3,340 people who were hospitalized with heart and lung problems.

“We were able to work out a yearly cost of bushfire smoke for each summer season and… our estimates for the last season were A$2 billion in health costs,” Johnston said.

“There’s fluctuation year to year, of course, but that was a major departure from anything we had seen in the previous 20 years.”

Melbourne, Sydney and Canberra all had periods where they had the worst air quality in the world as a result of the smoke.

Commissioners also heard on Tuesday that the increasing frequency of significant bushfire events in Australia meant that survivors no longer feel safe during the recovery phase.

“Disasters are no longer perceived as rare events, they are often seen as climate change, and they’re part of our new reality,” Lisa Gibbs, a child welfare expert from the University of Melbourne, said.

“We don’t know how that is going to affect recovery because the seeds of hope are a really important part of people’s ability to deal with what has happened and to get back on track.”

Continue Reading

Blog

Rising urbanization likely cause of heavy rainfall in South: Research

Their findings were reported in the ‘Quarterly Journal of Royal Meteorological Society’ on May 18, 2020.

Published

on

By

IMD heavy rains predict

Hyderabad, May 26 : A team of researchers at the University of Hyderabad (UoH) have discovered a link between heavy rainfall in several parts of south India and a growing urbanisation in the region.

A team led by Prof. Karumuri Ashok from the Centre for Earth, Ocean and Atmospheric Sciences of the University of Hyderabad, examined whether a common factor, the changing ‘land use land cover’ (LULC) in these states, has any implications for the heavy rainfall events.

Over the past few years, many heavy rainfall events have been reported in cities of south India. Prominent among them are the extreme rainfall that created havoc in Chennai and nearby areas of Tamil Nadu in December 2015, the heavy rainfall over Hyderabad and adjoining regions in Telangana in September 2016, and the extreme rainfall event in Kerala in August 2018.

Notably, these three states differ in their geographical locations, and also the season in which they receive rainfall. Kerala, located on the southwest Indian coast off the Arabian Sea receives heavy rainfall during the summer monsoon from June-September.

Tamil Nadu, off the Bay of Bengal, receives rainfall mainly during the northeast monsoon (October-December). The land-locked state Telangana receives the bulk of its annual rainfall during the summer monsoon season.

A UoH statement stated that their study showed the precipitation during heavy rainfall events in these states has significantly increased from 2000 to 2017. Using the LULC data from ISRO, and by conducting 2 km resolution simulation experiments of twelve heavy rainfall events over the states, the researchers found distinct LULC changes in these three states, which led to higher surface temperatures and a deeper and moist boundary layer. These in turn caused a relatively higher convective available potential energy and, consequently, heavier rainfall.

The study also suggests that increasing urbanization in Telangana and Tamil Nadu is likely to enhance the rainfall during the heavy rainfall events by 20%-25%. Prof. Ashok feels that improving the density of observational rainfall and other weather parameters may help in forecasting extreme rainfalls at city level.

Their findings were reported in the ‘Quarterly Journal of Royal Meteorological Society’ on May 18, 2020.

Prof. K. Ashok and his Ph.D. student Mr. A. Boyaj who is the first author, are both from the Centre for Earth, Ocean and Atmospheric Sciences of the University of Hyderabad. The work was done in collaboration with Prof. Ibrahim Hoteit and Dr Hari Prasad Dasari of King Abdullah University of Science and Technology (KAUST), Saudi Arabia.

Continue Reading
Advertisement

Most Popular