Citizens' Issues
The strange case of a £70 bn UK company, in which Sharad Pawar was a director
SGFX Financials came into existence in December 2010, had Sharad Pawar as a director for a few weeks, within months showed an injection of a breath-taking £70 bn and got dissolved in November 2012
 
Updated on 18 November 2015 to include action taken by Mr Pawar against the two directors of SGFX Financials UK
 
Sharad Pawar, leader of the Nationalist Congress Party (NCP), was a director in a UK-registered company SGFX Financials Co UK Ltd, for a few weeks, reveals documents, attributed in twitter to Niraj Gunde by Bhatiya Janata Party leader Dr Subramanian Swamy.
 
According to the UK company filing database, companieshouse.gov.uk, Mr Pawar was appointed as board member of SGFX Financials Co on 13 December 2010 and left the company on 5 January 2011. The filing also notes Mr Pawar's occupation as Minister, Government of India.
 
SGFX Financials Co's incorporation filing as on 13 December 2010, shows Mr Pawar as one of the directors at that time. Besides Mr Pawar, there are two more directors, Sarvesh Narendra Gade and Shahanaz Ashraf Bharde mentioned in the filing. It states total number of shares at 500 with nominal value of £700,755 (British pounds). While Gade held 375 shares, Bharde, who is also mentioned as company secretary, had 125 shares at a nominal value of £1401.55, the statement filed on 13 December 2010 shows. More about the directors later.
 

 
On the day, when Mr Pawar left the company, there is one more filing by SGFX Financials Co, which shows its increase in its number of shares. In this filing, the number of shares allotted is stated as 4,500, takings SGFX Financials Co's total shares to 5,000 at £1401.55 per share. This took the total capital of the company to £7,007,750 (£7.00 million).
 
According to the company filings, 2011 was a very hectic year for SGFX Financials Co. There were a lot of appointments and terminations taking place. But, most important, is that the capital was increasing very rapidly. From £7.00 million British pounds on 5 January 2011, it increased to £700.775 million on 20 March 2011. As if, this was not enough, again the capital zoomed to £70.077 billion as on 29 June 2011. In short, as soon as Mr Pawar left the company on 5 January 2011, within next five months, the capital of SGFX Financials Co grew one-lakh times to £70.077 billion from a mere £700,755. Who put in this money? Where did this money come from? Where did it vanish?
 
 
Following an application from SGFX Financials Co, the UK Registrar of Companies issued a notice for dissolving the company on 14 August 2012. Three months after that SGFX Financials Co was termed as a dissolved company.
 
Coming back to SGFX Financials Co directors, Mr Gade, as per information available in public domain, was director of three companies registered in the UK. He was appointed director SGFX Financials Co twice. He was also director of Angel Investments Co UK Ltd and Online Currency Exchange of UK Ltd. Mr Gade, born in January 1985, has mentioned his occupation as businessman, as per the information. What is interesting is that all these three companies, in which Mr Gade was a director between June 2010 and May 2013, are now dissolved. 
 
Ms Bharde, another director and company secretary of SGFX Financials Co, was born in March 1975. Similar to the Mr Gade, she too was director of Angel Investments Co UK Ltd, according to information available in public domain. 
 
 
Another interesting factor in this entire episode is that all the companies registered and dissolved in the UK have their namesake companies registered in India with the same directors. For example, there is a company registered on 5 July 2013 as Online Currency Exchange of India Ltd (U74900MH2013PLC245277) with an address from Vashi Infotech Park in Navi Mumbai. Mr Gade is the common director in both the Indian and UK registered company. Only difference is that in the Indian entity, Ms Bharde’s name is mentioned as Shahanaz Sarvesh Gade. In addition, there is one more director, Razin Ashraf Bharde, who seems to be a brother of Ms Shahanaz.
 
 
Even SGFX Financials Co of UK has its namesake in India registered as SGFX Financials Ltd (U65999MH2011PLC216863). This company has three directors, all associated with SGFX Financials Co of UK. Besides Mr Gade and Ms Bharde, there is Chidambareswara Rao Kalla who is mentioned as director in the Indian entity. Mr Rao Kalla was director of SGFX Financials too in the UK.
 
Update:
Sharad Pawar has denied having anything to do with SGFX Financials. According to a report in The Economic Times newspaper, he has charged Sarvesh Narendra Gade and Shahanaz Ashraf Bharde for falsely and fraudently using his name as a director.
 
Mr Pawar also filed a complaint against Mr Gade and Ms Bharde at the Economic Offences Wing (EOW) for adding his name as a director in SGFX Financials UK. In the complaint, he named both Mr Gade and Ms Bharde as the two individuals who 'falsely and fraudulently' submitted his name without his knowledge and incorporated the firm, says another report from the Economic Times.
 

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COMMENTS

Rajendra mandhania

1 year ago

It is very curious.From where money came.If it came by chequ from which bank and whose account.After dissolution how it was settled :payment to creditors,who are they,payment to shareholders,who and where.

No answers and it is getting swept under carpet already

sysman

2 years ago

ecomic times has picked-up Moneylife story today -

How a Mumbai couple created a Rs 7 lakh crore dubious firm SGFX Financials

http://economictimes.indiatimes.com/news...

REPLY

sysman

In Reply to sysman 2 years ago

Typo - read economic times and not ecomic times. Though many times headline provide comic relief.

sysman

In Reply to sysman 2 years ago

The report says that Mr. Sharad Pawar has filed a complaint with EoW that his name is used without his consent.

But the "Yaksh Prashan" still exist about creation, storage, usage and disposal of GBP 70 billion (eq to INR 7 lakh crores). And no body notices this pile of money unless ML exposed it.

Ashoka.kalgude

2 years ago

Pawar was director just to open swiss bank account after wards he is not. then Money transfer happened it is so huge defensibly not ignored by British Authorities Swiss and Indian, but they put nelson eye. Big quesction is How this ill gotten money transferred from India? How many scams are related to this 7 lakh crores. and How many more there there un-earthed. India ED knows all but it is corrupt to core and slaves of masters. What Party of difference is doing under helms of Arun JaiItaly.

Ashoka.kalgude

2 years ago

Why Indian journalist fixated with English Pounds and American Dollar and billion and million? Why cant it be in crores and rupees?

Vikram Dhotre

2 years ago

It will be better that India's politicians incorporate companies in India itself, keep investing and generate much needed employment!

tikku

2 years ago

Politics is the source of huge money and Pawar is in politics for decades. He seems to have successfully cleaned his ill gotten money into white.

Mahesh S Bhatt

2 years ago

Sir what's strange in India.

Lalu convicted DISQUALIFIED MP wins Bihar

Sukhram earlier before conviction said that someone left bagfull of $300000 outside his Shimla Bunglow.

Truth is stranger than fiction & hard /costly to prove in courts especially in tolerant India.

1992 Harshad Mehta scam SBI official got convicted after 23 years only.

Politicians enjoy State IMMUNITY under constitution.

Hence extra judicial people judgements are atimes expideted from Mahatma Gandhi Indira Gandhi Rajiv Gandhi.

Sharad Pawar is lucky to have been slaped once in 40 years of his glorious adminstrative career.

Its Media entertainment for 2 days enjoy. Mahesh

Hemlata Mohan

2 years ago

Ab initio, this whole affair seems shady. I am totally disappointed - when small fries are hunted down for KYC/AML etc, how such a big amount has not been under the lens? And what is the FSA doing in UK? They are the ones who are part of the FATF recommendations?

sysman

2 years ago

I am not able to digest some of these facts even with Hazmola.

1. A company gets equity worth GBP 70 billion. This is more than 3.5% of GDP of UK (which is about GBP 2 trillion (nominal) or even GBP 1.7 tn (PPP)). This money must have come through banking channels; must have stayed in banks and must have gone using banking channels. This big amount should be noticed by all including Bank of England, Police, other regulators - whether the money came is clean money; used for legal purposes and remitted for legal purposes. Even financial press must highlight it. This is FDI for UK.

2. People come and go as directors. Why? One Mr. Jitu Jeremiah joined as director thrice and terminated twice. Further, just after Mr. Jitu's appointment, share capital was increased. Is there any link?

3. What relations Mr. Sharad Pawar has with company? Why he joined and left after 3 weeks similar to Mr. Jitu.

4. Where the money was utilised? Utilisation of GBP 70 billion anywhere will change the economy of the country, reason and even the world. For comparison GBP 70 bn = INR 7 lakh crores. This is about 40% of total budget expenditure (both plan + non-plan) of union budget of Govt of India.

5. What happened to money (GBP 70 billion), when the company was dissolved? How it was used or appropriated or remitted out (if so, where).

6. Every country and interpol keeps track of all big transactions and money remittances. The big transaction is normally defined as USD 1 million or more. In this case, it is USD 105 billion (current rate GBP/USD). Where the money has gone?

7. Was is part of black money - which NaMo is hunting?

8. A GBP 70 bn equity capital company and all it's directors having address of rent-a-address joint.

Something strange seems to be happening with UK department of companies, Bank of England, UK Police and even interpol.

Even, in case of nationality issue of Mr. Rahul Gandhi, the companies office is giving unsolicited lame excuses.

Kya Daal main kuch kaalaa hai? Ya, puri daal he kaali hai?

REPLY

K. M. Rao

In Reply to sysman 2 years ago

It is only commoners like us who will have furnish details of KYC telephone bills whenever we change our residence as a proof. But the big shots can escape nonchalantly !

Arun

2 years ago

After Rahul, Pawar. How many such cases might be? Do a parliament JPC be formed to investigate?

manoharlalsharma

2 years ago

MAHARAJA of GOOD TIMES.

Dushyant Thakker

2 years ago

145-157 ST JOHN STREET is a PO Box in London. Anyone can get this registered address as PO Box by paying GBP 45 as fees. It belongs to incorporation agent - Companies Made Simple. These guys have a package offering where anyone sitting in India can for a UK company + UK bank account and they will manage show on your behalf. This company also helps anyone set up company in exotic tax havens.

Now SGFX Finance Limited is also incorporated in India with same directors - Gade & Bharde. Interestingly their email address belongs to taxexpert.in which looks like a tax consultancy. taxexpert.in website is now disabled.

suresh n d

2 years ago

please request the publisher to bring it more public view.Also let me know how I can participate in bringing to more public view.
Thanks,
Suresh.

REPLY

Arun

In Reply to suresh n d 2 years ago

try to circulate, not many media house will do as they would like to have their cut from such news.

Manohar salunke

2 years ago

Thanks for publish information which is lesson for us. But i not found logic of in this issue. Kindly post your comment and give us fertilizer to us.

vnrao

2 years ago

what is the use of these iformation when govt not able to do anything except filling up the pages

Star rises over Myanmar but will Syu Kyi be able to deliver
The most heartening feature of the landslide electoral victory of the National League for Democracy (NLD) in Myanmar is the maturity and statesman-like quality being displayed by its chairperson, Aung San Suu Kyi, who is now showing all potentiality to become a beacon of hope in south and southeast Asia.
 
At a time when wild jubilation is taking place all over Myanmar and accolades are being heaped on the Nobel laureate, the lady, as she is called in the length and breadth of Myanmar, has played her cards adroitly, knowing fully well that in spite of the massive numerical superiority in parliament she is hamstrung by the Myanmar army's constitutional status.
 
That is the reason behind her overture to President Thein Sein and Senior General Min Aung Hlaing, the all powerful commander-in-chief of the army, for reconciliation talks. Both of them have accepted the offer. But, even if the army comes forward for talks it may put its foot down for accepting the 2008 constitution as the basis for all future negotiations.
 
Experience has however made Suu Kyi wiser and she has checkmated the army at the first round by declaring the results of the election in advance from her party headquarters as the counting progressed. Obviously the lady took lessons from what happened in 1990 when the military junta managed to maintain a lull even after the NLD had secured a massive majority at the end of the vote counting process and declared the annulment of the election within two days. At that time, the NLD committed a fatal mistake. It sat quietly for two months and allowed the army to snatch away power by using a quasi-military organization named the State Law and Order Restoration Council (SLORC).
 
Suu Kyi knows that she must neutralize the army if she wants to usher in democratic process and lift the poverty stricken Myanmar out of a morass. She knows that she cannot be the president under the existing constitution unless it is amended because she had a foreign spouse and two children with foreign nationality. Hence, her thunder that she would be above the president. But how this can be possible is difficult to guess. Either to achieve this or to become the president straightway she has to amend the constitution, which may be impossible for her given the fact that 25 percent of seats in parliament are reserved for the army. Seventy-five percent approval from parliament is necessary for amending the constitution.
 
However, the strategic position being enjoyed by the commander-in-chief is certain to emerge as the biggest stumbling block before Suu Kyi. The army chief appoints and controls the ministers of defence, home and border affairs. Therefore Su Kyi or anybody appointed by her as president will have no power over the country's security order. Moreover the general has the right to approve presidential or vice-presidential candidates. He can veto any proposal to amend the constitution and take back power from any government at any time if he wishes. In a word, the army chief, and not any elected government, is the ultimate authority in Myanmar.
 
This may be the reason behind the Tatmadaw, as the Myanmar army is called, maintaining its poise and assuring that it will not stand in the way of transfer of power even in the face of such a massive defeat for the Union Solidarity and Development Party (USDP), the junta proxy, as the military top brass knows it very well that the army's position is unassailable. But its slogan of "discipline flourishing democracy", meaning primarily crushing of ethnic armed rebellions, has received a setback as the NLD has swept the election in ethnic minority dominated areas too, nearly obliterating the ethnicity-based political parties there.
 
But the army is now the most important political institution in Myanmar with firmly entrenched economic interests. It has made billions of dollars by indulging in trades of jades, natural gas and other national assets. This is what observers call the "Burmese way to capitalism", leaving an adverse impact on the country's economy. Foreign direct investment has increased in recent times but the kyat, the Myanmarese currency, has depreciated by 24 percent against the US dollar between April 2014 and September 2015.
 
Suu Kyi's real test will be finding a solution to the long standing armed ethnic conflicts. By voting for the NLD en masse the ethnic minorities, consisting of about 40 percent of Myanmar's total population, have entrusted Suu Kyi with a responsibility she may find it difficult to live up to.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Shirish Sadanand Shanbhag

2 years ago

Till Military rule, which still exists in Mynamar, reportedly backed by Chinese, to keep its strength and hold over Mynamar, is completely out, democracy will not stabilise in Mynamar.
China has already taken some southern ports ofv Mynamar and some strategically placed islands like coco islands on south side of Mynamar, to build its military base and traded in Ports and coasts of Mynamar, long ago.

Not ready to collect environment compensation: Toll collector to SC
The SMYR Consortium Ltd. on Monday told the Supreme Court that saddling it with collecting environment compensation charge (ECC) from commercial vehicles entering Delhi was a "humongous" additional responsibility which it was not ready to assume.
 
SMYR collects toll on behalf of three of Delhi's civic bodies at 125 entry points, except for Badarpur and Noida.
 
"As a commercial player, I am not ready to take over the obligation to collect the ECC. I don't want to assume the humongous obligation," counsel Shyam Divan told the bench of Chief Justice H.L. Dattu, Justice Shiva Kirti Singh and Justice Amitava Roy.
 
Seeking to exit from the responsibility of collecting ECC, Divan, appearing for petitioner SMYR, told the court: "You must, as a duty to justice, allow me to move out."
 
Comparing the October 9 order to changing the goal post in a level playing field, Divan told the court: "I don't want to assume the responsibility and wanted to opt out."
 
Petitioner SMYR said this as it sought recall or modification of the October 9 court order asking it to collect ECC from commercial vehicles entering Delhi.
 
As SMYR sought to opt out, amicus curiae Harish Salve disputed "every word" said on behalf of the toll collecting company, saying it was under contractual obligation to implement all orders of the court.
 
Additional Solicitor General Tushar Mehta, appearing for the North Delhi Municipal Corporation, supported Salve by saying that there was a clause in the contract between SMYR and the municipal body that says the toll collector was obliged to carry out every order of the court.
 
As the matter is likely to take some time to be argued, the court directed further hearing on November 27.
 
In an attempt to curb commercial vehicles contributing to the already alarming air pollution, the apex court on October 9 imposed an ECC of Rs.700 on light vehicles and two-axle trucks and Rs.1,300 on 3 and 4 axle trucks entering the capital.
 
The ECC has been imposed for four months on an experimental basis and would remain in force till February 29, 2016.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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