Gurinder Singh Dhillon, the so-called "spiritual" guru of Radha Soami Satsang Beas (RSSB) must be feeling cramped these days, because the criminal inquires related to illegal loans he and other members of the Dhillon family received is growing ever closer to him.
Today LiveMint has a story, "Fortis Healthcare asks Sebi to order arrest of former promoters." Those promoters are Malvinder and Shivinder Singh, cousins of Gurinder Singh Dhillon.
Download Fortis Healthcare asks Sebi to order arrest of former promoters
Fortis Healthcare Ltd has asked the markets regulator to order the arrest of its former promoters, chairman Ravi Rajagopal said, after they failed to return diverted money as directed by the regulator.
On 17 October, Securities and Exchange Board of India (Sebi) directed Fortis’s former promoters Singh brothers and various promoter companies to return within 90 days ₹472 crore that had gone out of Fortis as secured inter-corporate loans.
The Singh brothers arranged massive loans to the guru, his family, and associates. Those loans were made fraudulently, as detailed in a criminal complaint filed by Malvinder against Gurinder Singh Dhillon and others involved in the financial wrongdoing.
What went on is complicated, as it involves numerous companies that shifted transactions around to hide what really was going on and who the ultimate beneficiaries of the illegal loans were: the guru and his family, plus associates connected with RSSB.
This image that I shared in a previous post shows the overall money trail -- which explains why Fortis now is seeking to have Malvinder and Shivinder Singh arrested, and why Gurinder Singh Dhillon should be worrying about the same thing happening to him.
As shown above, six Fortis companies funneled money to the Dhillon family: Gurinder Singh Dhillon (RSSB guru), Gurkirat Singh Dhillon (younger son), Gurpreet Singh Dhillon (older son), Nayantara Dhillon (wife of Gurpreet Singh), and Shabnam Dhillon (wife of Gurinder Singh).
A massive loan of about $770 million (5,482 crore rupees) also went directly to Gurinder Singh Dhillon from RHC Holding, a company controlled by Malvinder and Shivinder Singh.
Fortis now wants to get $66 million (472 crore) back from the Singh brothers, which is why they're being threatened with arrest. But as the flow chart above shows, that money went to the Dhillon family. So this explains why Malvinder has filed the criminal complaint against the guru, his family, and business associates -- as described in this previous post.
The Singh brothers are pretty much broke, it appears.
Because they looked upon their cousin, the guru, as a divine being who could do no wrong, they didn't follow normal fiduciary rules when they made the loans to Gurinder Singh Dhillon and his family. Thus apparently they didn't demand collateral as a loan guarantee, figuring that the guru of RSSB could be trusted to repay the money.
That trust obviously was misplaced, because Gurinder Singh has made death threats against Malvinder Singh after Malvinder refused to sign a Family Agreement letter absolving the guru of his debts and guaranteeing that legal action wouldn't be taken against him.
In a separate LiveMint story, the chairman of the Fortis board was asked about the loans to the guru and his family.
Download We are in a way caught in crossfire in Daiichi case: Fortis' Ravi Rajagopal
With former promoter Malvinder Singh alleging that monies were sucked out as per directions of the Dhillons of Radha Soami Satsang Beas, do you think Fortis should go after RSSB as well for recoveries?
We have to follow the Sebi order, and it clearly specifies 8-9 parties. They have ordered these parties to pay back the monies within 90 days of the order, which expired on 18 January. If they failed to pay, Sebi had instructed us to go after them. So, we cannot go after other parties, even if newspaper reports make certain allegations.
Well, it isn't just newspaper reports that have made those allegations about financial fraud committed the Dhillon family. Malvinder Singh's criminal complaint is the source of those allegations.
Gurinder Singh Dhillon is used to being surrounded by fawning devotees who believe the guru can do no wrong, being "God in human form." But investors and business executives don't care about that crap. They just want their money back, and by all accounts, the Fortis money ended up in the pockets of the Dhillon family.
This happened through some exceedingly convoluted and deceitful means, as detailed in the Sebi order mentioned by the board chairman. After finding the order through the Great God Google, I read it quickly, and don't claim to understand what went on fully.
But here's a screenshot from the order that shows how some of the fraudulent transactions were handled. Fortis Healthcare money ended up in entities controlled by Malvinder and Shivinder Singh. The money trail doesn't show that the money then was given to the guru and his family in the form of unsecured loans.
So it sure seems like Gurinder Singh Dhillon is going to come under ever-increasing scrutiny by Indian investigators. Assuming, of course, that the authorities in India are willing to hold a popular guru accountable for his crimes.
This section of the Sebi order shows that further investigations are being undertaken, or will be at some point.
The guru may think that he is above the law. I suspect, and hope, that he isn't.
If it turns out that Indian authorities are willing to turn a blind eye to financial fraud by the guru of Radha Soami Satsang Beas, this could have a chilling effect on the willingness of investors in both India and elsewhere to put money into the coffers of Indian corporations.