DHFL Administrator Moves NCLT against Wadhawans in Rs12,705-cr Fraud
The administrator of the now-bankrupt Dewan Housing Finance Corporation Ltd (DHFL) has filed an application in the NCLT (national company law tribunal) against promoters Wadhawans and developers, among others, regarding a Rs12,705.53-crore fraud in loan disbursements for slum rehabilitation projects during FY16-17 to FY18-19.
 
In a regulatory filing, the bank said that the administrator has sought contribution from the promoters, developers and the assignees to assets of DHFL, which is undergoing insolvency proceeding under the Insolvency and Bankruptcy Code (IBC).
 
The alleged fraud came to light in the initial report of the transaction auditor, Grant Thornton India LLP, which was appointed to conduct investigation of the company affairs.
 
"On the basis of investigation and observations of the Transaction Auditor, the Administrator has filed an application with respect to the disbursements made towards development of two SRA (Slum Rehabilitation Authority) projects, before the Mumbai bench of the National Company Law Tribunal under Section 60(5) and Section 66 of the Code on 27 September 2020 against Kapil Wadhawan, Dheeraj Wadhawan, the developers and assignees of the SRA projects, and certain other entities," it said.
 
Based on the transaction auditor's report, the application has been filed against 40 respondents, also including Darshan Developers Private Limited and Sigtia Constructions Private Limited. and certain other entities.
 
The investigation found that the monetary impact of the above transactions was Rs12,705.53 crore, including the principal amount of Rs10,979.50 crore and accrued interest of Rs1,726.03 crore. The entire amount mentioned above along with interest for the remaining period is claimed through the said application filed with the NCLT, the filing said.
 
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    Anugrah Scam: EOW Puts Rs450 Crore Lien on Edelweiss Custodial; Edelweiss Goes to SAT Against NSE Order
    The multi-crore scam of Anugrah Stock & Broking Pvt Ltd continues to take new turns. As per reports, the economic offenses wing of Mumbai police has put a lien on bank account of Edelweiss Custodial Services Ltd (ECSL), which was clearing house for Anugrah till a few months ago. Separately, Edelweiss Custodial Services has approached Securities Appellate Tribunal (SAT) against an order passed by NSE Clearing Ltd in the same matter.
     
    The EOW is probing a cheating case registered against Anugrah Stock & Broking by angry investors, who have lost crores of rupees. 
     
    Quoting an officer from the EOW, a report from Times of India, says, "We have put Rs450 crore lien on the bank account of the clearing house because it cleared the shares of investors, which were part of collateral. Anugrah had pledged these shares with the Edelweiss Custodial Services to get the margin."
     
    The EOW summoned a director of Edelweiss Custodial Services and recorded his statement about the position of collateral, investigating officer inspector Rajesh Kelwe told the newspaper. "ECSL had sold the pledged shares of over Rs 400 crore to cover its losses," an officer said.
     
    In a statement, Edelweiss Custodial Services said: "It is unfortunate that after defaulting and allegedly perpetrating a fraud on innocent investors, Anugrah has been deflecting from its own misappropriations by alleging that the clearing member is in some manner liable. We have filed a defamation suit against Anugrah..."
     
    According to the report, Ashutosh Shah, a director of an advertisement company, had lodged a case of criminal breach of trust and criminal conspiracy against Paresh Kariya, director of Anugrah and Kalap Shah and Anil Gandhi of Teji Mandi Analytics Pvt Ltd, and others. Anugrah has around 30,000 clients, most of them brought over by Teji Mandi, the report added.
     
    Separately, a report from BloombergQuint says that Edelweiss Custodial Services has moved to the SAT against on order passed by NSE Clearing Ltd asking the services provider to return client securities.
     
    Edelweiss Custodial Services invoked the bank guarantees and partly sold off the securities after it discovered that the securities pledged to it belonged to the broker’s individual clients. NSE Clearing issued a notice for reinstatement of these securities.
     
    As reported by Moneylife, last week, the Bombay High Court appointed a court receiver for all fixed assets of Anugrah Stock & Broking, while asking directors of the brokerage as well its sub-broker Teji Mandi Analytics, not to leave the HC jurisdiction or country without permission.
     
    During the hearing, Justice Gautam Patel of the Bombay HC also came down heavily on Anugrah for submitting additional material in a sealed cover and not filing a clean copy of its affidavit. The Court also directed all petitioners to include Teji Mandi Analytics as respondent in the case, if not already done, through amended petitions. (Read: Moneylife EXCLUSIVE: 'No Sealed Cover', Bombay HC Tells Anugrah Stock & Broking)
     
    Earlier this month, the Bombay HC had barred crisis-hit Anugrah Stock and Broking from using assets worth Rs58 crore that belong to more than 25 investors, who filed a petition after the firm has stopped responding to them and their accounts have become inaccessible. 
     
    Hundreds of investors have lost large sums of money, with one south Mumbai-based family alone having invested over Rs150 crore. So, the number of litigants is likely to swell, unless other investors seek other options.
     
    The bulk of investors in Anugrah have come through an associate firm called Teji Mandi Analytics, which was apparently running a derivatives portfolio of over Rs1,000 crore like a Ponzi scheme with assured monthly returns. 
     
    On 4th September, the National Stock Exchange (NSE) had withdrawn all trading rights of crisis-hit Anugrah Stock and Broking Pvt Ltd. Earlier on 1st September, the exchange had withdrawn Anugrah's trading rights in future & options (F&O), currency derivatives and commodity derivatives segment.
     
    In a circular, NSE says, "On account of the regulatory concerns observed, the relevant authority of Exchange has decided to withdraw the trading rights of the member in all segments of the Exchange with immediate effect. Accordingly, in addition to the aforementioned segments, Anugrah Stock & Broking Pvt Ltd shall also be disabled in all other segments of the Exchange from 4 September 2020 before market hours."
     
    Anugrah Stock and Broking, which won a reprieve from SAT on 17th August, was unable to deposit Rs165 crore with the NSE by 1st September. The Exchange then had withdrawn its trading rights and also seized its computers and books, the brokerage firm has told investors thronging to its office.
     
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    COMMENTS

    s5rwav

    2 months ago

    Considering the Complexities in Legal Process going on in the Financial Frauds of Thousands of Crores of Public Money, NSE Must Ensure that it is Heard by SAT before Passing Any Order. I am Babubhai Vaghela from Ahmedabad. Thanks.

    Anil Ambani Tells London Court That He Has sold Jewellery and Taken Loans from His Mother and Son
    Appearing before a UK Court (under Rule 71) via video conference on Friday over a lawsuit brought by three State-controlled Chinese banks over non-repayment of loans, Anil Ambani claimed that his current expenses are being borne by wife and family and that he has even taken a loan from his son Anmol to the tune of several crores. He further claimed that he has sold off all his jewellery for Rs9 crore to pay off legal expenses and now owns 'nothing meaningful'.
     
    The Mumbai Mirror has reported that Ambani was subjected to three hours of incisive questioning with respect to his assets, liabilities and expenses. The report says Mr Ambani refuted that all reports of his fleet of expensive cars were merely media speculation and reports about his lifestyle were greatly exaggerated. Ambani further said “I have never owned a Rolls Royce. I use just one car at present.”
     
    While the embattled chairman of Anil Dhirubhai Ambani Group (ADAG) has continued to maintain that he has negative net worth, the Chinese banks have argued otherwise, quoting his luxurious lifestyle and the support that he has received from his elder brother Mukesh Ambani.
     
    He had earlier made an unsuccessful application for the proceedings to be held in private, which the judge later summarised was made as Mr Ambani was “concerned about his personal embarrassment”.
     
    When asked about the 12 million equity shares he owns in Reliance Innoventures Anil Ambani claimed that the shares are worthless. Ambani added that he had borrowed Rs500 crore from his mother and Rs310 crore from his son Anmol. In October 2018, Ambani took a loan of Rs500 crore from his mother, but when the lawyer asked him to reveal the terms of the loan, he said he was not privy to the actual terms of the loan. 
     
    The lawyer Bankim Thanki, representing the trio of Chinese banks, pointed out that the witness statements and list of his assets provided to the court were incomplete. 
     
    When confronted with his credit card, which was used in Harrods, Dolce and Gabbana and Harvey Nichols, Mr Ambani claimed that it was used by his mother. He said “I have not used my credit card,” when asked why there were no latest credit card statements.
     
    When he was questioned about the yacht he had gifted his wife Tina Ambani. Mr Ambani said that he suffers from seasickness and that the family has not used the yacht for many years. He contended “I am a 61-year-old man, I lead a very disciplined lifestyle. I do not drink...I do not smoke. Any suggestion of a lavish lifestyle is the creation of the media.” 
     
    He was also asked about the ownership of art works. He claimed that he owns only one piece of art, and when he was asked about the Tina and Anil Ambani Foundation holding art exhibitions with Christie’s, he said that it was part of the Harmony Foundation and belonged to his wife Tina.
     
    Mr Ambani was accused by the lawyer of putting his assets out of the reach of his creditors by putting the ownership in his wife’s name.
     
    When Thanki asked “The size of the legal team and your lifestyle suggest that you must have other sources of income”, Mr Ambani countered him saying “I do not have a luxurious lifestyle.”
     
    When he was asked several times if he was genuinely “interested in helping the court” and whether “everything has been disclosed”, Mr Ambani held that “True and fair statements have been furnished.” 
     
    Mr Thanki then sought to make the connection that Mukesh Ambani (the world’s fifth richest person) was still supporting him, Mr Thanki asked him to answer in yes or no whether “the effect of your evidence is that you live rent free in property which is owned by your brother” to which Mr Ambani admitted in the affirmative.
     
    In 2012, Anil Ambani took a loan of over US$700 million for his company Reliance Com from three Chinese banks for which he provided personal guarantee. The company is currently caught in insolvency proceedings.
     
    The banks managed to get a judgement debt to the tune of US$717 million against Mr Ambani. Mr Ambani was asked to provide a list of assets to the UK court along with bank statements and credit card statements for the last 24 months since he failed to pay the banks as per the court’s direction.
     
    The total debts of Anil Ambani stand at US$716,917,681 (Rs5,281 crore) and Mr Ambani said yesterday that he owns nothing as of now.
     
    It is also reported that Harish Salve, representing Anil Ambani, is arguing to reduce the legal cost assessment made by the Chinese banks.
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    COMMENTS

    Newme

    2 months ago

    What is the source of assets and income of his son?

    ganesanjaicare

    2 months ago

    fraud forgery another name anil ambani.he destroyed wealthof several lakh crores of investor money

    mywopy

    2 months ago

    Feels sorry for him, if both the bro's stayed together as one entity, Anilji would have been one of the world's richest, but now on the other end of the spectrum.

    What must go wrong, goes wrong.

    Wishing him the best to get back on his feet again.

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