Sterling Biotech Fraud: Judge Recuses Himself from Case after Approach by a Classmate on Behalf of Accused: Report
In another shocking twist to the controversial goings-on at major corporate defaulter Sterling group, a judge has recused himself from hearing a matter revealing that he was approached by one of his classmates on behalf of the accused, says a report. The group owes a slew of Indian banks over Rs15,600 crore and the entire promoter group has been negotiating a settlement at less than half what they owe, while holed up in Nigeria. 
 
According to a report from Economic Times, Dharmendra Rana, additional district and session judge in Delhi said, "he was shocked that he was approached by one of his classmates on behalf of the accused."
 
Recusing himself, justice Rana referred the matter to the district and sessions judge for relocation of the matter before another judge. However, after seeking consent from the enforcement directorate (ED), the district and session judge referred the matter back to justice Rana as he had already heard the entire case, the report says.
 
In a separate development, we learn that the Economic Offences Wing (EOW) of the Mumbai police has set up a special investigation team to investigate the Sandesara matter. 
 
Readers will recall that Moneylife has reported extensively on the shenanigans of the group, whose four politically powerful promoters—Nitin Sandesara, Chetankumar Sandesara, Dipti Chetan Sandesara and Hiteshkumar Patel -- who have been absconding from India, continue to manipulate the judicial system. They continue to be under investigation by almost all the elite investigation agencies in India and also have a lookout notice issued against them. And yet, their negotiations with banks not only continue unhindered, but there is no attempt to locate the group’s extensive assets in Nigeria and the US, which we have reported on.
 
Last month, the Sandesaras came up with a proposal to delay their one-time settlement (OTS) of Rs2,638 crore to December 2021.
 
This is the balance after paying up a pittance of Rs181 crore as part of their Rs3,100 crore settlement that the National Company Law Appellate Tribunal (NCALT) had said should be completed by 31 March 2020 to avoid liquidation. Why are these Gujarat-based promoters treated so differently from all other borrowers who have faced traumatic losses in the COVID lock-down? And why the sharp contrast from liquor baron Vijay Mallya who has offered full repayment with interest, or even from small borrowers who want the moratorium on their bike loan extended? (Read: Exclusive: Fugitive Sandesara of Sterling Biotech Dictates Terms to Indian Public Sector Banks)
 
For those who have not followed this scandalous story, the Sandesaras (Nitin, Chetan and Dipti) are absconding and are believed to be holed up in Nigeria where they have extensive businesses. 
 
They have been accused of money laundering and have lookout notices issued against them by every national investigation agency –Central Bureau of Investigation (CBI), ED and Serious Frauds Investigation Office (SFIO). 
 
And, yet, Indian public sector banks (PSBs) are working with them to settle the massive outstanding dues of their group, of over Rs15,600 crore, at a 55% haircut through an emissary. The Sandesaras are also pushing banks to file litigation to buy time to make the payment. 
 
Before that, a completely unconnected litigation in the United States has thrown up yet another money trail of the fugitive Sandesara family, the promoters of Sterling Biotech and Sterling SEZ, that owes Indian PSBs vast sums of money. 
 
A lawsuit has been filed in New Jersey against two individuals—Anil Patel (of New Jersey) and Manish Patel (of Pennsylvania)—to recover US$13 million that they owe to a creditor named Lakhani Associates. This follows a long litigation that dates back to 2012. The two Patels claimed that they have no money or assets to pay up, following which the New Jersey Court appointed an official receiver to ensure compliance with its order. (Read: Sterling Biotech Group: Is the ‘Generous’ Danny Patel of Sandesara Drive, Virginia, Managing Fugitive Sandesaras’ Vast US Assets? 
 
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    hamungel

    2 months ago

    Good Work, Moneylife.

    KVIC gets Flipkart, Amazon, Snapdeal to remove 160 fake Khadi products online
    The Khadi and Village Industries Commission (KVIC) on Saturday said that it has forced e-commerce portals Amazon, Flipkart, Snapdeal and others to remove over 160 web links selling products under the brand name of 'Khadi'.
     
    KVIC is a statutory corporation under the Ministry of Micro, Small and Medium Enterprises and is the original owner of the 'Khadi India' brand.
     
    The popularity of Khadi products has resulted in mushrooming of several entities selling products under the Khadi India brand.
     
    KVIC had served legal notices to over 1,000 firms using the brand name Khadi India to sell their products and thus causing damage to its reputation and loss of work to Khadi artisans.
     
    After KVIC served legal notice, Khadi Global has also discontinued using its website www.khadiglobalstore.com and also removed its social media pages on Twitter, Facebook and Instagram and have sought 10-day time to remove all such contents and products using the brand name Khadi.
     
    The KVIC action has also resulted in shutting down a number of stores across the country that were selling fake Khadi products.
     
    "These e-commerce portals were selling products like Khadi masks, herbal soaps, shampoos, cosmetics, herbal mehandi, jackets, kurta and many such products through different sellers using the brand name Khadi. This created a false impression among online buyers that these commodities were genuine Khadi products," KVIC said in a statement.
     
    "A majority of the products that have been removed were being sold by one Ayush E-Traders. This firm has confirmed to KVIC that it has removed 140 links for various products that were being sold as 'Vagad's Khadi Products'," the statement added.
     
    There has been a steep rise in violation of Khadi trademark as the popularity of Khadi has grown in recent years. Exploiting this opportunity, a number of online sellers began selling random products in the name of Khadi.
     
    Also, hundreds of stores mushroomed in different cities selling fake Khadi products. In recent months, particularly during the Covid-19 lockdown, there was huge proliferation of such fraudulent online sellers. However, to enable online customers to buy genuine Khadi products, KVIC has launched its e-portal selling a range of 300 products online.
     
    KVIC Chairman Vinai Kumar Saxena said that KVIC has given the violators the option of either stop selling products in the name of Khadi or face legal action.
     
    "Legal notices have been issued to various firms essentially to safeguard the interest of Khadi artisans. This trademark violation has a direct bearing on the livelihood of our artisans who are making genuine handcrafted products," Saxena said.
     
    KVIC has also employed a dedicated legal team, a mix of human and technological tools to ensure a systematic and continuous monitoring and takedown of unauthorised products being sold in the name of Khadi.
     
    KVIC is also educating all registered Khadi institutions engaged in manufacturing Khadi products that their registration with KVIC did not authorise them to reauthorise any one to use Khadi trademarks or the Khadi India logo unless that firm or company obtains proper licence from KVIC for the same.
     
    Last month, KVIC had issued legal notices to two firms -- Khadi Essentials and Khadi Global -- for unauthorisedly selling cosmetics and other products in the name of Khadi. KVIC has also sought damages to the tune of Rs 500 crore from Fabindia which is pending before the Mumbai High Court.
     
    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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    m.prabhu.shankar

    2 months ago

    Root cause of all such problems is punishment is less. Don't catch all the people. Just catch three people doing this forgery. Retrieve all their wealth and property and then hang them and make it as a big news. That's the only way to control this menace.

    Over 19,000 cases pending before NCLTs till July 31
    A total of 19,844 cases were pending before the National Company Appellate Tribunal's (NCLT) various benches as of July 31, Parliament was informed on Sunday.
     
    In a written reply to a question in the Lok Sabha, Minister of State for Finance Anurag Thakur said that out of the total, over 12,000 cases were under the Insolvency and Bankruptcy Code (IBC).
     
    "As on 31st July, 2020, total 19,844 cases were pending before the National Company Law Tribunal (NCLT), including 12,438 cases under Insolvency and Bankruptcy Code (IBC)," he said.
     
    The minister also informed the house that a total of 320 posts of officers and staff have been created in the NCLT.
     
    He, however, denied any plans to increase the strength of NCLT benches to address the impact of Covid-19 economic pressures.
     
    The 'e-court' project is being implemented in all 16 benches of the NCLT, he said, adding that e-filing has been started in nine benches so far and it will be extended to the remaining benches also.
     
    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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