When I read the first sentence of a comment by "Hidden Agenda" on a recent blog post of mine, "Malvinder: RSSB guru's loans of over $870 million are due," I strongly suspected I was going to find what this person wrote was interesting.
Let's piece the whole story together using common sense.
Below is the comment, with a few typos corrected. I consider that everything Hidden Agenda says does indeed make common sense. This person fits together bits of pieces of the Dhillon family/Singh brothers financial saga in a fashion that makes for a coherent tale.
Gurinder Singh Dhillon, the RSSB guru, could throw light on the saga if he'd ever hold a press conference and answer questions from Indian financial journalists. But he hasn't done this, and may never do this, so that vacuum understandly is being filled with theories such as you'll read below.
Back in 2010 I wrote several blog posts about members of the Dhillon family receiving shares in Religare from the Singh brothers, which is the first part of Hidden Agenda's comment. See:
As the second post notes, it was a holding company controlled by the Dhillon family that held shares of Religare worth $254 million. It seems entirely reasonable that one of Gurinder Singh's sons was enriched by the same amount, as the comment says.
The first post says that the guru's sons got Religare stock for 23 cents a share, which is less than the $1 a share price mentioned in the comment. Regardless, the Singh brothers essentially gifted the Dhillon family shares that soon after ballooned in value.
Read on for the common sense talk from "Hidden Agenda."
Let’s piece the whole story together using common sense.
First of all, this began back when Gurinder’s sons received shares in Religare or some company just before they were floated on the stock market.
The Singh brothers sold the shares to them for $1 each and they became worth $100 each after the flotation. This made one of the sons $250,000,000 – a quarter of a billion.
Nobody just gives anyone that kind of money for no reason. This was obviously a business transaction. There was obviously a second part to that deal, whereby Gurinder’s family does something in return that is of more value to the Singh brothers.
What could that be? What could Gurinder give them that would be of more value?
Connections? People who can be trusted? My guess is that this was planned long ago. With key people in place that were not related to the Singh brothers, they could do transactions that would appear to be genuine business transactions. Of course none of this could be in writing – so it would have to be based on trust.
Gurinder would be the perfect partner for the deal. He could appoint a person like Goswami who was not a family member, yet Goswami would never steal from his spiritual guru. And maybe others like him that we may still be unaware of.
Funds could be siphoned into offshore companies that have complete secrecy. Nominee directors and shareholders – so ownership remains anonymous.
But something went wrong. The real estate market took a serious nosedive. Just at the same time the Singh brothers desperately needed funds otherwise they would lose the shares they had pledged to the bank.
Their normal bank accounts were frozen because of the Daiichi Sankyo case. So they could not make the bank payments. They most likely appealed to Gurinder to help them but he was unable to do so because they real estate market had dropped so dramatically.
From there, it all went downhill. The Singh brothers lost their billions – their biggest mistake was to pledge their shares. Obviously they knew at the time that they had plenty of money to make the bank payments – but they did not see the possibility of their bank account being frozen. Nobody could foresee that.
After that – the relationship with Gurinder most likely went sour as they perhaps blamed him for not helping. I doubt very much that the money given to the Dhillon family was theirs to keep – most likely it was an “under the table” deal to give money back to the Singh Brothers.
The Singh brothers would not just give money away for nothing – there was obviously some kickback payments due to them.
When things went wrong – all trust is gone and it’s each for himself. That is where they are now.
If the Singh’s bank accounts had not been frozen – this story would never have come out – even now. It could only be a joint effort by the Singhs and the Dhillons. They both stood to profit.
But business deals can go wrong and this one did.
Malvinder is bitter because he has lost everything and all that remains now is revenge. Shivinder is friends with Gurinder – so he’ll be okay but I doubt he will be the next guru. It would be a PR miracle if RSSB managed to pull that off.