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.
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