Sebi bars Reliance Home Finance, Anil Ambani, 3 others from securities market
New Delhi, Feb 12: Sebi on Friday restrained Reliance Home Finance Ltd, industrialist Anil Ambani and three other individuals from the securities market for allegedly siphoning off funds from the company.
The three other individuals are Amit Bapna, Ravindra Sudhakar and Pinkesh R Shah.
In a 100-page interim order, the regulator also restrained the individuals from "associating themselves with any intermediary registered with Sebi, any listed public company or acting directors/ promoters of any public company which intends to raise money from the public till further orders."
The order, pertaining to alleged siphoning off of funds from the company, has been passed against a total of 28 individuals and entities (noticees).
The focus of the Sebi probe was to broadly look into the manner in which loans were dispersed by Reliance Home Finance Ltd (RHFL) during 2018-19 to several borrowing entities.
Sebi noted that the root of the present proceedings can be traced to multiple sources, inter alia, a letter of Price Waterhouse & Co addressed to RHFL intimating their resignation as the statutory auditor of the company; and complaints received by Sebi alleging siphoning off/diversion of funds of RHFL by promoters and management of the company.
There were multiple Fraud Monitoring Returns (FMRs) from banks alleging, among others, that funds borrowed by RHFL from different lenders were partly used towards repayment of loans, the regulator said.
It was also complained that various connected parties and companies with weak financials were used as conduits to siphon off funds from RHFL to entities connected to the promoter company Reliance Capital, the order said.
"It is noted that one individual person Anil Ambani, who controls the company due to his position as a promoter and controlling shareholder by way his direct and indirect shareholding, is seen to be exercising unfettered powers...," Sebi said.
The order noted that the company's Key Managerial Persons (KMPs) like Executive Director and CEO Ravindra Sudhalkar and the CFOs -- Amit Bapna and Pinkesh R Shah -- "instead of bringing such misdeeds to the notice of the Board of Directors/Regulators, are prima facie found to be hand in gloves with Ambani, in siphoning off the borrowed funds of the company to other financially weak promoter group companies which is evident at different stages of approval of those General Purpose Corporate Loans (GPCL) transactions".
The amount of loans disbursed by RHFL under General Purpose Corporate Loans (GPC loans) have increased exponentially from around Rs 900 crore as on March 31, 2018 to around Rs 7,900 crore as on March 31, 2019, the order said.
The noticees include Adhar Project Management and Consultancy Private Ltd, Indian Agri Services Pvt Ltd, Phi Management Solutions Pvt Ltd, Arion Movie Productions Pvt Ltd, Citi Securities and Financial Services Pvt Ltd, Deep Industrial Finance Ltd, Azalia Distribution Pvt Ltd and Vinayak Ventures Pvt Ltd.
Gamesa Investment Management Pvt Ltd, Medybiz Pvt Ltd, Hirma Power Ltd, Tulip Advisors Pvt Ltd, Mohanbir Hi-Tech Build Pvt Ltd, Netizen Engineering Pvt Ltd and Crest Logistics and Engineers Pvt Ltd (now known as Cle Pvt Ltd) are among the noticees.
Other noticees are Reliance Unicorn Enterprises Pvt Ltd, Reliance Exchange next Ltd, Reliance Commercial Finance Ltd, Reliance Cleangen Ltd, Reliance Business Broadcast News Holdings Ltd, Reliance Broadcast Network Ltd, Reliance Big Entertainment Pvt Ltd and Reliance Capital Ltd.
The regulator noted that the prima facie observations contained in the order are made on the basis of the material available on record and the prima facie findings shall also be considered as a show cause notice.
"The noticees (noticee nos. 1 to 28) are further called upon to show cause as to why inquiry should not be held against them... (for) alleged violations of provisions of Sebi Act, 1992, LODR Regulations and PFUTP Regulations," Sebi said, adding that the noticees can file their replies within 21 days of receiving the order.
They can also indicate whether they desire to avail an opportunity of personal hearing on a date and time to be fixed in that regard.
Sebi also clarified that the restraint imposed on RHFL should not come in the way of any resolution/revival plan approved or to be approved, under any law.
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Nightclub fire: Goa court remands Luthra brothers in police custody for five days
Panaji (PTI): A court in North Goa on Wednesday remanded Gaurav and Saurabh Luthra, co-owners of the ‘Birch by Romeo Lane’ nightclub, in police custody for five days.
The brothers, brought to Goa from Delhi after being deported from Thailand in connection with the December 6 blaze that killed 25, were produced in the court after undergoing health check-ups twice at the District Hospital in North Goa.
Judicial Magistrate First Class Mapusa Puja Sardesai remanded the two brothers in police custody for five days.
Advocate Vishnu Joshi, representing Bhavana Joshi who lost four family members in the tragedy, said that the accused were asking for “special consideration” claiming poor health.
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“We said they should not be given any extra relaxation,” he said, adding that the court has taken cognisance of the fact that this is about the death of “25 people in the form of mass genocide”.
“But since they kept pressing for medical check-up, the court ordered reexamination of their health. It is clear in the medical examination that they don’t require any consideration. The accused sought special considerations in the lock-up like a good mattress, which the court refused,” said Joshi.
A team of the Goa Police, along with the Luthra brothers, arrived at the Manohar International Airport, Mopa, in North Goa at 10.45 am.
The duo was initially taken to a Primary Health Centre at Siolim for medical examination. They were then taken to the District Hospital at Mapusa.
After their health assessment, the two were brought to the court.
The court directed that the accused be sent for fresh medical examination. Accordingly, the two were again taken to the District Hospital.
Later, they were produced before Judge Sardesai, who ordered the five-day police custody of the accused.
After the fire tragedy at Arpora village, the Anjuna police had registered a case against the Luthra brothers on various charges, including culpable homicide not amounting to murder.
The brothers were arrested in Delhi on Tuesday after being deported from Thailand. A court there allowed the Goa Police their two-day transit remand.
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The duo had fled to Phuket in Thailand early on December 7, hours after the fire at their nightclub, prompting the authorities to issue an Interpol Blue Corner Notice and cancel their passports.
They were detained by Thai authorities at Phuket on December 11 following a request from the Indian government, which later coordinated with officials in Thailand to deport them under legal treaties between the two nations.
Five managers and staff members have already been arrested by the Goa Police in connection with the fire.
