NEW DELHI: Levelling contemporary allegations of quid pro quo offers through the ICICI Bank MD and CEO Chanda Kochhar, the unbiased activist and whistle-blower Arvind Gupta has alleged that Ruia brothers of Essar group got undue favours from the bank for "round-tripping" investments into her spouse Deepak Kochhar's NuPower Group.
The Ruias funded the NuPower and its subsidiary through their son-in-law Nishant Kanodia and nephew Anirudh Bhuwalka all through December 2010 to March 2012 through subscribing to compulsorily convertible choice stocks and fairness stocks, Gupta has alleged in his contemporary letter dated May 11, 2018, addressed to Prime Minister Narendra Modi.
Almost two years back (March 2016), he had written a letter to the high minister alleging dirty dealings between the bank, through Chanda Kochhar, and the Videocon Group to benefit her circle of relatives.
Citing data accessed from the Registrar of Companies (RoC) filings through NuPower Renewables, Gupta's letter unearths that Nishant Kanodia (husband of Ravi Ruia's daughter Smiti Ruia) invested in NuPower by way of Firstland Holdings, Mauritius -the maintaining corporate of Matix Group (co-promoted through Kanodia).
Firstland Holdings, Mauritius subscribed to a total of three,243,752 percentage of Rs 1,000 each and every of NuPower Renewable Ltd all through December 31, 2010, to March 21, 2012, in 4 other tranches amounting to Rs 324.37 crore, as in line with the RoC filings through NuPower.
Anirudh Bhuwalka, nephew of Shashi Ruia, owned A-One Motors & Services Ltd acquired NuPower Technologies through AMW Motors Ltd which is owned and regulated through Asia Motor Works Holdings Ltd -- in the end managed through the Essar Group, the letter writes.
"Essar Group has spherical tripped funding payments to NuPower group by way of Firstland Holdings, Mauritius and had handsomely rewarded Deepak Kochhar...The Matix Group front ended the Firstland Holdings, Mauritius for investing Rs 325 core within the NuPower Group -- the crowd owned through the husband of Chanda Kochhar.
"Evidently, the malice of quid pro quo extends to any other crony capitalist - the Ruia brothers of the Essar Group now headquartered in Mauritius -- the secure haven and a secure passage for global money laundering," Gupta stated.
These dealings took place all through the length when Essar Group got sweetheart offers from ICICI Bank's in another country branches in Singapore, the United Kingdom and New York to procure Essar Steel Minnesota (USA) and Algoma Steel (Canada), the letter alleged.
The lender through a consortium as a lead banker lent $530 million to Essar Steel in 2010, to Essar Oil $350 million to procure Stanlow refinery in the United Kingdom, it stated.
"All these investments through the Essar Group became unhealthy and have confronted liquidation and chapter complaints for restoration of the investments," Gupta stated in his letter.
Further, he has alleged that Essar Capital Holdings, Mauritius compensated the Matix Group for funding NuPower Renewable group through subscribing to the fairness offering through the Matix Fertilisers and Chemicals all through December 2010 to August 2011 through buying 163,540,343 stocks of Rs 10 each and every for Rs 163.53 crore.
When asked for comments on the whistle-blower's letter, ICICI Bank stated: Typically, we don't respond to shopper specific queries...With regards to Essar Steel Minnesota, we want to let you know that a consortium of 7 Indian banks including ICICI Bank had sanctioned loans to the entity. Also, massive US funds gave loans to the company. Out of the total debt of the company of $1.02 billion, ICICI Bank's percentage used to be less than 25 in line with cent."
It additionally stated that the figure of $530 million mortgage used to be "grossly overstated".
"Due to various factors, the loan facilities provided to this project were classified as non-performing by all lenders. The resolution process pursuant to the same is under process. Further, we would like to state that while sanctioning this loan, all the internal processes of credit risk rating, credit appraisal and credit approval were duly followed within the bank. Hence, it will be totally inappropriate and misleading to attribute any wrong motives to ICICI Bank for these loans."
An Essar group spokesperson stated, "A letter by one Arvind Gupta has made certain libelous accusations against Essar. We strongly condemn these allegations, which are clearly motivated. Essar does not have any business interest in Firstland Holdings Ltd."
"Moreover, as we understand, AMW Motors Limited Mumbai has not made the investment of Rs 197 crore in Nupower, contrary to the claims made in the letter. Essar has been dealing with ICICI since 1980. All transactions with them have been made in a very open and transparent manner, and in accordance with all applicable laws of the land," it added.
While Matix Group stated it categorically and unequivocally refutes the allegations made within the letter purportedly written through one Arvind Gupta.
"The letter makes claims that are completely false and baseless, and seem to be driven by a vested interest and an ulterior motive. Essar does not have any business interest in Firstland Holdings, contrary to what is being alleged. Firstland Holdings' investment in Nupower was made on merit to participate in the renewable energy sector, and has since been divested. No loans were ever taken by Matix from ICICI Bank," Matix stated in a statement.
Embattling crisis at the top-level, ICICI Bank previous this week stated its board has made up our minds to launch an unbiased enquiry into allegations of 'battle of pastime' and 'quid pro quo' in Kochhar's dealing with positive borrowers. The topic relates with allegations of involvement of Kochhar and her members of the family in a mortgage equipped to Videocon group on a quid pro quo foundation.
Earlier as of late, the bank got here with a clarification that Kochhar has no longer been despatched on go away and is out of place of job due to her planned annual leaves.
Not to mention, the board of the bank in previous in March-end this 12 months had fully sponsored the bank CMD denying any wrongdoing on her part. The Reserve Bank in its 2016 investigation within the topic had raised questions over the ownership of the Mauritius-based entity, First Land Holding, which had invested Rs 325 crore in NuPower.
The Ruias funded the NuPower and its subsidiary through their son-in-law Nishant Kanodia and nephew Anirudh Bhuwalka all through December 2010 to March 2012 through subscribing to compulsorily convertible choice stocks and fairness stocks, Gupta has alleged in his contemporary letter dated May 11, 2018, addressed to Prime Minister Narendra Modi.
Almost two years back (March 2016), he had written a letter to the high minister alleging dirty dealings between the bank, through Chanda Kochhar, and the Videocon Group to benefit her circle of relatives.
Citing data accessed from the Registrar of Companies (RoC) filings through NuPower Renewables, Gupta's letter unearths that Nishant Kanodia (husband of Ravi Ruia's daughter Smiti Ruia) invested in NuPower by way of Firstland Holdings, Mauritius -the maintaining corporate of Matix Group (co-promoted through Kanodia).
Firstland Holdings, Mauritius subscribed to a total of three,243,752 percentage of Rs 1,000 each and every of NuPower Renewable Ltd all through December 31, 2010, to March 21, 2012, in 4 other tranches amounting to Rs 324.37 crore, as in line with the RoC filings through NuPower.
Anirudh Bhuwalka, nephew of Shashi Ruia, owned A-One Motors & Services Ltd acquired NuPower Technologies through AMW Motors Ltd which is owned and regulated through Asia Motor Works Holdings Ltd -- in the end managed through the Essar Group, the letter writes.
"Essar Group has spherical tripped funding payments to NuPower group by way of Firstland Holdings, Mauritius and had handsomely rewarded Deepak Kochhar...The Matix Group front ended the Firstland Holdings, Mauritius for investing Rs 325 core within the NuPower Group -- the crowd owned through the husband of Chanda Kochhar.
"Evidently, the malice of quid pro quo extends to any other crony capitalist - the Ruia brothers of the Essar Group now headquartered in Mauritius -- the secure haven and a secure passage for global money laundering," Gupta stated.
These dealings took place all through the length when Essar Group got sweetheart offers from ICICI Bank's in another country branches in Singapore, the United Kingdom and New York to procure Essar Steel Minnesota (USA) and Algoma Steel (Canada), the letter alleged.
The lender through a consortium as a lead banker lent $530 million to Essar Steel in 2010, to Essar Oil $350 million to procure Stanlow refinery in the United Kingdom, it stated.
"All these investments through the Essar Group became unhealthy and have confronted liquidation and chapter complaints for restoration of the investments," Gupta stated in his letter.
Further, he has alleged that Essar Capital Holdings, Mauritius compensated the Matix Group for funding NuPower Renewable group through subscribing to the fairness offering through the Matix Fertilisers and Chemicals all through December 2010 to August 2011 through buying 163,540,343 stocks of Rs 10 each and every for Rs 163.53 crore.
When asked for comments on the whistle-blower's letter, ICICI Bank stated: Typically, we don't respond to shopper specific queries...With regards to Essar Steel Minnesota, we want to let you know that a consortium of 7 Indian banks including ICICI Bank had sanctioned loans to the entity. Also, massive US funds gave loans to the company. Out of the total debt of the company of $1.02 billion, ICICI Bank's percentage used to be less than 25 in line with cent."
It additionally stated that the figure of $530 million mortgage used to be "grossly overstated".
"Due to various factors, the loan facilities provided to this project were classified as non-performing by all lenders. The resolution process pursuant to the same is under process. Further, we would like to state that while sanctioning this loan, all the internal processes of credit risk rating, credit appraisal and credit approval were duly followed within the bank. Hence, it will be totally inappropriate and misleading to attribute any wrong motives to ICICI Bank for these loans."
An Essar group spokesperson stated, "A letter by one Arvind Gupta has made certain libelous accusations against Essar. We strongly condemn these allegations, which are clearly motivated. Essar does not have any business interest in Firstland Holdings Ltd."
"Moreover, as we understand, AMW Motors Limited Mumbai has not made the investment of Rs 197 crore in Nupower, contrary to the claims made in the letter. Essar has been dealing with ICICI since 1980. All transactions with them have been made in a very open and transparent manner, and in accordance with all applicable laws of the land," it added.
While Matix Group stated it categorically and unequivocally refutes the allegations made within the letter purportedly written through one Arvind Gupta.
"The letter makes claims that are completely false and baseless, and seem to be driven by a vested interest and an ulterior motive. Essar does not have any business interest in Firstland Holdings, contrary to what is being alleged. Firstland Holdings' investment in Nupower was made on merit to participate in the renewable energy sector, and has since been divested. No loans were ever taken by Matix from ICICI Bank," Matix stated in a statement.
Embattling crisis at the top-level, ICICI Bank previous this week stated its board has made up our minds to launch an unbiased enquiry into allegations of 'battle of pastime' and 'quid pro quo' in Kochhar's dealing with positive borrowers. The topic relates with allegations of involvement of Kochhar and her members of the family in a mortgage equipped to Videocon group on a quid pro quo foundation.
Earlier as of late, the bank got here with a clarification that Kochhar has no longer been despatched on go away and is out of place of job due to her planned annual leaves.
Not to mention, the board of the bank in previous in March-end this 12 months had fully sponsored the bank CMD denying any wrongdoing on her part. The Reserve Bank in its 2016 investigation within the topic had raised questions over the ownership of the Mauritius-based entity, First Land Holding, which had invested Rs 325 crore in NuPower.
Chanda Kochhar’s links with Ruias now under lens
![Chanda Kochhar’s links with Ruias now under lens]()
Reviewed by Kailash
on
June 02, 2018
Rating:
