The strange case of a £70 bn UK company, in which Sharad Pawar was a director
Moneylife Digital Team 17 November 2015
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.
 
Comments
Rajendra mandhania
6 years 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
6 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...
sysman
Replied to sysman comment 6 years ago
Typo - read economic times and not ecomic times. Though many times headline provide comic relief.
sysman
Replied to sysman comment 6 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
6 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
6 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
6 years ago
It will be better that India's politicians incorporate companies in India itself, keep investing and generate much needed employment!
tikku
6 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
6 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
6 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
6 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?
K. M. Rao
Replied to sysman comment 6 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
6 years ago
After Rahul, Pawar. How many such cases might be? Do a parliament JPC be formed to investigate?
manoharlalsharma
6 years ago
MAHARAJA of GOOD TIMES.
Dushyant Thakker
6 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
6 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.
Arun
Replied to suresh n d comment 6 years ago
try to circulate, not many media house will do as they would like to have their cut from such news.
Manohar salunke
6 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
6 years ago
what is the use of these iformation when govt not able to do anything except filling up the pages
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