In an additional indictment recently filed with a local court, the agency claimed that “transactions were rotated across various entities in a single day to conceal the detection of the final destination of the funds.”
The additional indictment sheet names 16 companies and three people, including the former chief executive of the Religare Enterprises group, Maninder Singh, in the loan fraud case. Promoters Malvinder and Shivinder Mohan Singh had brought Maninder Singh to Religare since he was their close confidant, EOW claimed.
Maninder Singh previously worked for 27 years at, a company the Singh brothers sold to Japanese Daiichi Sankyo in 2008.
Maninder Singh was “well aware” that the entities to which the loans were made were “not creditworthy, but he continued to approve the loans” because the entities were linked to the Singh brothers, the agency said.
Among others named in the indictment is an associate of the Singh brothers, NK Ghoushal. According to the indictment, Ghoushal told EOW that his four companies were being used as a “disbursement vehicle / facilitator to transfer funds from one entity to another entity”.
He said the fund has been rotated since 2006, he said. Ghoushal had also disclosed details of 11 shares bought / sold on behalf of Religare management including the Singh brothers, the EOW said in its indictment.
The third named individual is Rajender Prasad Aggarwal. According to the indictment, Aggarwal, along with Ghoushal, helped the Singh brothers divert money from Religare to the fictitious entities of his associates. This money was funneled and rerouted through several entities before finally reaching the promoters’ company, RHC Holdings, the EOW said in the indictment.
The EOW’s charge sheet is also based on the final investigation report provided by the market regulator Securities and Exchange Board of India last December.
The EOW said the accused had renewed unsecured working capital loans that were alternated through back door transactions through entities that existed on paper but had no business.
The “proposal to finance the working capital of such entities was only a cover-up for siphoning,” he said, adding that the loans were sanctioned when Religare
, the group company whose money was allegedly embezzled, had not even received the request for funds.
Religare Finvest had filed a complaint alleging financial irregularities against its former management.
“The accused, in key managerial positions, conspiring with each other, flouted all standards of corporate governance and helped the accused embezzle the amount of the listed company to accuse the entities related to Malvinder and Shivinder Singh, thus causing undue loss to the company plaintiff, ”EOW said.