CBI probes Chennai firm plaint on UK co hand in multi-crore scam
Suresh Kumar | TNN | Nov 19, 2017, 05:47 IST
CHENNAI: The CBI
has commenced a probe into a possible several hundred crore money
laundering scam involving a UK-based venture capital firm. The suspected
fraud came to light when the promoter of Chennai-based Zynergy Solar
Projects and Services Private Limited approached the Madras high court
seeking a probe by economic wing of the CBI, based on his representation
dated October 5.
When the plea came up for hearing on October 27, special public prosecutor for CBI told the HC that action was being taken in accordance with the law based on Zynergy's representation. Recording the submission, Justice G Jayachandran disposed of the plea. The primary allegation of Rohit Rabindranath, who floated Zynergy in 2007, is that TejKohli of Kohli Ventures, a UK-based investment firm, had "cheated him and utilised Zynergy for money laundering."
Deal with UK firm had been struck in July 2015
Rabindranath ventured into solar power generation in 2010, and in July 2015, he signed a strategic investment agreement with Kohli Ventures. It was agreed by both sides that ₹30 crore would be invested by Kohli Ventures through its nominees in Zynergy partially in the form of equity capital and partly as fully compulsorily convertible debentures (FCCD) and optionally fully convertible debentures (OFCD).
"An initial investment of $4.445 million (₹30 crore) in remittances came in August-December 2015 from Kohli Ventures and Cascade Global Pvt Ltd Hong Kong, through Cyprus and Cayman Islands. Shares constituting 51% of the shareholding were allotted to Cascade Energy Pte Ltd (Cascade) as per the agreements," the petitioner said.
However, after the allotment of shares and securities in favour of Cascase Systems, it came to light that the transfers contravened mandatory provisions of master circular issued by the RBI, dated July 1, 2015, under the Foreign Exchange Management Act, 1999. As per the circular, a non-resident investor may exit after a minimum lock-in period of one year and no such investor should be guaranteed any assured exit price at the time of making such agreement and to only exit at a fair price at the time of exit. This apart, Zynergy's banker KEB Hana Bank, said the KYC report of its 51% shareholder, Cascade Systems was negative and notified the firm to conduct due diligence, and said financial assistance granted by the bank would be withdrawn if the issue was not rectified.
"A due diligence conducted by us revealed that TejKohli was involved in several criminal cases that are pending and was also convicted by the United States district court, central district California. He was also prohibited from owning or being affiliated or employed by any financial institution insured by the Federal Deposit Insurance Corporation (FDIC) or from being employed in any capacity wherein he has custody, control or management of his employer's funds," the petitioner alleged.
Meanwhile, another banker of the company, Union Bank (UK), issued letters to the firm in March stating that Kohli if continued to be a shareholder in Zynergy, it would be constrained to call off the $4 million loan it had advanced.
On May 19 this year, income tax department officials attached the shares held by Cascade Systems in Zynergy under the Benami Property Transactions Act, 2016 on the ground that the act constituted a benami transaction as the investment was funded by Tej-Kohli and Cascade Global Limited, Hong Kong thus rendering the shares to be held by one person and the beneficial owner as someone else.
When the plea came up for hearing on October 27, special public prosecutor for CBI told the HC that action was being taken in accordance with the law based on Zynergy's representation. Recording the submission, Justice G Jayachandran disposed of the plea. The primary allegation of Rohit Rabindranath, who floated Zynergy in 2007, is that TejKohli of Kohli Ventures, a UK-based investment firm, had "cheated him and utilised Zynergy for money laundering."
Deal with UK firm had been struck in July 2015
Rabindranath ventured into solar power generation in 2010, and in July 2015, he signed a strategic investment agreement with Kohli Ventures. It was agreed by both sides that ₹30 crore would be invested by Kohli Ventures through its nominees in Zynergy partially in the form of equity capital and partly as fully compulsorily convertible debentures (FCCD) and optionally fully convertible debentures (OFCD).
"An initial investment of $4.445 million (₹30 crore) in remittances came in August-December 2015 from Kohli Ventures and Cascade Global Pvt Ltd Hong Kong, through Cyprus and Cayman Islands. Shares constituting 51% of the shareholding were allotted to Cascade Energy Pte Ltd (Cascade) as per the agreements," the petitioner said.
However, after the allotment of shares and securities in favour of Cascase Systems, it came to light that the transfers contravened mandatory provisions of master circular issued by the RBI, dated July 1, 2015, under the Foreign Exchange Management Act, 1999. As per the circular, a non-resident investor may exit after a minimum lock-in period of one year and no such investor should be guaranteed any assured exit price at the time of making such agreement and to only exit at a fair price at the time of exit. This apart, Zynergy's banker KEB Hana Bank, said the KYC report of its 51% shareholder, Cascade Systems was negative and notified the firm to conduct due diligence, and said financial assistance granted by the bank would be withdrawn if the issue was not rectified.
"A due diligence conducted by us revealed that TejKohli was involved in several criminal cases that are pending and was also convicted by the United States district court, central district California. He was also prohibited from owning or being affiliated or employed by any financial institution insured by the Federal Deposit Insurance Corporation (FDIC) or from being employed in any capacity wherein he has custody, control or management of his employer's funds," the petitioner alleged.
Meanwhile, another banker of the company, Union Bank (UK), issued letters to the firm in March stating that Kohli if continued to be a shareholder in Zynergy, it would be constrained to call off the $4 million loan it had advanced.
On May 19 this year, income tax department officials attached the shares held by Cascade Systems in Zynergy under the Benami Property Transactions Act, 2016 on the ground that the act constituted a benami transaction as the investment was funded by Tej-Kohli and Cascade Global Limited, Hong Kong thus rendering the shares to be held by one person and the beneficial owner as someone else.
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