BIG NEWS regarding the financial fraud saga involving the Singh brothers and Gurinder Singh Dhillon, the guru of Radha Soami Satsang Beas, a religious sect in India with millions of followers.
The High Court of Delhi has ordered that money be recovered from Dhillon and his family members, along with about 50 other people and entities, many of which had been controlled by the RSSB guru, his family, and close associates. You can read the order via this PDF file:
Download Order 28-05-2019132578_2019
I'll make some "I told you so" comments following the Business Today story.
RSSB chief Gurinder Singh Dhillon, wife Shabnam Dhillon, sons Gurkirat and Gurpreet and daughter-in-law Nayan Tara Dhillon are among the 56 entities from whom Delhi HC has ordered recovery of monies Singh brothers-Malvinder & Shivinder-owe to Daiichi. Money will also be recovered from former Religare chief Sunil Godhwani and brother Sanjay Godhwani, according to the Delhi HC order.
BusinessToday.In had reported on March 12 that Singh brothers can only pay the $500 million order against them to compensate Daiichi, provided the money owed to them by RSSB chief Gurinder Singh Dhillon and his family is recovered. In his submission, Malvinder has maintained that he can pay the arbitration order provided he can recover the money owed to him.
Daiichi has enfored an arbitration order in Singapore that ordered the brothers to pay Daiichi $500 million towards alleged non-disclosure of crucial information during the sale of Ranbaxy Laboratories to Daiichi in 2008.
With this order, the Delhi HC has expanded the scope of people from whom the money owed by Singh brothers to Daiichi can be recovered to honour the arbitration award.
Besides the Dhillon family, the Delhi HC is issuing 'garnishee orders' against several Dhillon and RSSB associates' companies, including Prius Real Estate, Addon Realty, Payne Realtors SGGD Projects, Luminous Holding. A garnishee order is an order against a third party to recover money to settle a debt or dues.
Garnishee order prevents these entities from alienating any assets. The dues will now be paid to Delhi HC instead of Singh brothers and their entities to whom it is owed.
BusinessToday.In has reported the flow of money from Singh brothers to entities owned and controlled by Gurinder Singh Dhillon - the head of the Radha Soami Satsang Beas - his family and assocites of RSSB. RoC filings and terms sheets say between 2011 and 2014, Rs 1107.5 crore from the Rs 9,576 crore sale proceeds of Ranbaxy to Daiichi Sankyo was paid through RHC group firms RHC Holding Private Limited, Oscar Investment Limited, RHC Finance Private Limited and Fortis Healthcare Holdings Private Limited into two group entities ANR Securities Private Limited and Ranchem Private Limited.
Thereafter, this money was transferred to Prius Real Estate Private Limited controlled by Dhillon family associates and RSSB functionaries through optionally convertible debentures (OCD). The money invested in other Prius group entities called Prius Commercial, Payne Realtors, SVIIT Software and Sharan Hospitality whose preference shares worth Rs 875.53 crore were subscribed to by Prius Real Estate. Both the OCDs and preference shares were to be redeemed between August-November, 2018 at a hefty premium.
Delhi HC had concluded the hearing on May 28. The written order was issued on June 10.
Now, this story doesn't point out that the flow of money into the pockets of Gurinder Singh Dhillon and his family occurred fraudulently through a conspiracy involving people both at the sending end (public companies) and receiving end (shell companies cited in the story).
The story does note that those shell companies were controlled by Dhillon family members and RSSB functionaries. So likely the RSSB guru and his family face additional legal problems.
I'm pleased that justice is being done in India. No one should be above the law, even if a person is considered to be God in Human Form, as the RSSB teachings proclaim Gurinder Singh Dhillon to be.
It's also pleasing to be able to say I told you so to the many religious devotees who have been leaving comments on my blog posts about this financial fraud saga along the lines of "The guru can do no wrong" and "You're rushing to judgement."
Well, actually the guru has done wrong, and it isn't a rush to judgement to analyze stories in the Indian financial press.
It's been clear for many months that the fraudulent loans ended up in the pockets of the RSSB guru and his family, so it was only a matter of time before the Indian legal system would force the Dhillon family to repay the illegally-obtained money.
This shows the power of critical thinking.
I and others (such as Spence Tepper, a frequent commenter on this blog) could see clearly what was happening because our viewpoint wasn't clouded by religious fundamentalism. On the other hand, ardent devotees of the RSSB guru failed to recognize facts because what they believed about the guru was at odds with facts about the guru.
Lesson: be a devotee of truth, not of religion.