RSSB guru agrees to submit "sealed" tax returns to Delhi High Court

More news on the financial fraud scandal involving the Singh brothers and their relative, Gurinder Singh Dhillon, the guru of Radha Soami Satsang Beas.

After the story I'll comment on something that I neglected to mention in a previous post on this subject -- how the guru has admitted to "round trip" financial transactions that appear to be illegal. Below is the Live Mint story.

Note: from what I can tell, a sealed court document means that only the court and parties directly involved in a court case can see it. The general public doesn't have access to it, which makes sense if the document contains sensitive information.

New Delhi: Gurinder Singh Dhillon, the spiritual head of the Radha Soami Satsang Beas and his family on Tuesday informed the Delhi high court that they are willing to file their income tax returns in a sealed cover before the registrar of the court.

The copies of the document will also be given to the decree holder --Daiichi Sankyo-- and the concerned judgment debtors, subject to their filing an undertaking to maintain confidentiality in the matter.

Dhillon had filed an exemption application against the court order citing “severe prejudice" to them.

The court has disposed off the application now.

The legible documents related to bank statements have to be filed within two weeks.

The court had deferred its order last week as the counsel for the applicant had prayed that final orders in the application be deferred to enable him to obtain instructions on whether the garnishees are willing to file their income tax returns in a sealed cover.

Former Fortis Healthcare promoter Malvinder Singh had filed an affidavit last month in the Delhi high court alleging that Gurinder Singh Dhillon and his family owe him ₹1,473 crore, lent to them over a 10-year period till 2016.

In the affidavit filed on 13 August, Singh alleged that over 2007-12, the Dhillon family took loans totalling ₹578 crore from RHC Holding Pvt. Ltd and Today's Holdings, both funded by him and his brother Shivinder Singh.

In 2016, a Singapore tribunal asked the Singh brothers to pay ₹2,600 crore to Daiichi Sankyo in a case involving Ranbaxy Laboratories’ regulatory issues. The dues have now ballooned to ₹3,500 crore, including interest.

In a previous post about the Dhillon family tax returns, an Economic Times story was shared that said in part:

In an affidavit filed before the Delhi High court on November 12 last year, Dhillon had disclosed about the financial transactions between RHC holdings Ltd and his family members dating back to 2006. In fact he has also tried to establish that his sons Gurpreet and Gurkirat Singh Dhillon were young at that time, Gurkirat being minor and both his sons did not manage their financial affairs personally.

He had also revealed that RHC devised such a mechanism that transactions essentially involved transferring money from one subsidiary to a bank account of Dhillons and then transferring the same money either on the same day or shortly thereafter to another subsidiary of the group or usually to RHC holdings Ltd.

That second paragraph describes what's been called "round trip" financial transactions. These caught the eye of the Securities and Exchange Board of India (SEBI), which called them fraudulent. The SEBI report contains a diagram of one day's circular, or round trip, transactions. 

So it seems significant that the RSSB guru has admitted to getting money put into his account through this sort of complex round trip transaction. The Economic Times story calls the entities other than FHL and RHC subsidiaries, but a better term seems to be shell companies.

There have been reports that at one time those shell companies were controlled by the Dhillons and their associates. Thus it appears very unlikely that loaned money could appear to the Dhillon family bank accounts without their knowing how it got there.

This is how I summarized things in a 2019 post, "Why the RSSB guru is responsible for financial fraud."

Some core facts are clear:

(1) The Securities and Exchange Board of India has determined that funds were fraudulently siphoned out of a public company into shell companies. 

(2) Those illegal money transfers involved "round trip" transactions that required the collusion of conspirators at both the public company and the shell companies.

(3) The RSSB guru, his family, and close associates controlled the shell companies that received the fraudulent funds. 

(4) The Dhillon family and their close associates used the fraudulently-obtained money, in large part or entirely, to buy real estate and the High Court of Delhi has ordered that this money be recovered from the RSSB guru, his family, and other entities.

At any rate, this saga has more twists and turns ahead, almost certainly. I'll share them as I learn about them. 

Comments

[Sonia]

"The accounting slang term "round tripping" refers to a series of transactions between companies that bolster the revenue of the companies involved but that, in the end, don't provide real economic benefit to either company. While not necessarily illegal, round tripping is at best disingenuous."

https://smallbusiness.chron.com/meaning-round-tripping-accounting-65720.html

[Dragon slayer]

Sonia, the rssb agent is splitting hairs, when you clearly failed to note why GSD has said he will offer documents SEALED from the public eyes - this is the fundamental point here. He definitely has allot to hide. Just what is it in those documents does he think will incrimate him and cause severe prejudice. Will rssb brainwashed people begin to realise that he is a fraudster ? Will his empire continue to crumble. ? , the sooner people realise this the better , but there is a danger these people will try find solice in another fake con artist disguised as a guru . The devil has his fingers in many pies and avenues

[Sonia]

@Dragon Slayer

Court records are often sealed when the confidentiality of the persons involved is paramount to the case. The court is allowing them to be submitted sealed. We honestly have no idea why they are sealed but sometimes it has to do with sensitive material containing trade secrets, classified information affecting national security (he does have Z level security clearance), or protecting cooperating witnesses from retaliation. There are number of possible reasons that aren’t sinister.

We’re talking about someone who accounts meticulously for every single rupee spent at the Dera. If he was a crook he’d be a hell of a lot smarter about how the money flowed. No one can be that meticulous and that stupid at the same time. It just doesn’t compute.

[anami]

Hey, Sonia.

Yes, I saw.

My theory, I think they used round tripping to make deceptive account entries and log revenue even as they lost it, but it wasn't to steal money. It was to prop REL's stock price by padding the balance sheet and buy time. When things turned around (new economic bubble, better ideas, miracle) they could back the false numbers with real money. A little more creative accounting, and no one had to know.

It could've worked and been good for everyone--Singhs, Dhillons, employees, shareholders, India--but it didn't work.

I've worked for two different companies that bluffed their way straight to bankruptcy. Most employees bluffed right along, even as their paychecks fell behind! You always want your team to win, and good sense often goes out the window.

[Nick Ny]

A spiritual leader who preaches sachkhand as the ultimate abode and honest living should not be involved in such complex and illegal financial conspiracies to begin with...he definitely is not following the basic fundamentals of RSSB.

[um]

@ Nicky

Sartre made it clear ... if you don want your hands stained with blood, just take on certain offices.

Every president of the USA etc. however decent a person, will have to sign orders of the secret service, the army etc that will lead to the end of peoples life.

Sometimes people have no choice and are jostle into situations were they cannot act but in a certain way ... even gurus.

Call it karma, call it every way you want.

One can question if it is at all possible to remain ethical correct in the financial world in general and in India in particular.

The money that had to be handled had deep roots, several generations, long before there was an association with the spiritual office of guru ship.

In the end each and everybody has to attach his own meanings to the facts as they are put on the table ..., and ... is personal responsible for those attachments.... ALL,... even lawyers, judges journalists, the atheists, the villagers in Beas, his followers, he himself, the family members involved, the anarchists, the atheists ... you name them..... facts have no meaning.

[manoj]

A Fraudulent Baba GSD with a Disgraced Druggey Bollywood Disciple Shahid Kapoor now in the media..
What an embarrassment to an ongoing Bollywood fiasco. One of GSDs top cronie of an actor and disciple Shahid Kapoor has now been exposed in the Bollywood mafia media and is about to be questioned by the Narcotics Bureau of India for drug possession and usage at a high scale. Are these the teachings of the RS Cult and a perfect master GSD to his special spiritual students. What a Disgrace to Humanity and to the ethical people of this world. Shamefully shameful

https://www.shethepeople.tv/film-theatre/karan-johar-party-video-complaint-deepika-padukone-shahid-kapoor/

[Truth warrior]

How embarrassing for GSD , your RSSB promotion campaign via Bollywood stars has fallen flat on its face. So many are waking up to the truth of GSD and RSSB fake path and fake guru. Shame on you

[Karim W. Rahmaan]

So many are waking up to the truth of GSD and RSSB fake path and fake guru. Shame on you

Posted by: Truth warrior | September 20, 2020 at 01:32 PM

Whoa, all these new names Truth warrior is a good pick, I'm baffled as I can only use my real name.

On the Guru being genuine, kinda reminds me of that guy from X-Men -Magneto.

Here's a thought. What if Magneto mastered his powers and then developed a science in which he could unlock the same power in regular humans? Would you surrender to Magneto's experiment?

[Sonia]

Here's a thought. What if Magneto mastered his powers and then developed a science in which he could unlock the same power in regular humans? Would you surrender to Magneto's experiment?

Posted by: Karim W. Rahmaan | September 20, 2020 at 08:47 PM

Ahh... mastery. :)

Now we’re back to objectives.

[Karim W. Rahmaan]

"Ahh... mastery. :)

Now we’re back to objectives."

Posted by: Sonia | September 21, 2020 at 11:44 AM

This whole ordeal with privileged documents and upcoming court dates sounds so stressful. Yet, Baba Ji still somehow keeps equilibrium

"One can question if it is at all possible to remain ethical correct in the financial world"

Good point, the Teachings do say on Honest Living to do that to the best of ones abilities.

Posted by: um | September 17, 2020 at 08:11 AM

[Truth warior]

I am once again exposing the agents of RSSB, Sonia and Karim. Cleary we have yet again distraction tactics, which have been manipulated by GSD and re-brainwashed by the recent youtube Q and A from their so called self proclaimed guru. Stick to the facts and topic at hand!!!! It wouldn't surprise me that your are paid agents of RSSB. After all RSSB needs to grow into a world wide religion and to do this you need disinformation agents, and positive PR. Please redirect your comments on the appropraite Marvel sights, and RSSB propaganda sights for the sleeping dead.

[Karan]

The Owner of this blog should do something else instead of just writing one thing again and again in regards to just one person. I am not his follower but one thing i have noticed in you guys that you want him to be proven guilty. In that case just want to make it clear that you can accused anybody openly anytime and anywhere but you have to prove it and without proof you can't declared him guilty. So let the court decide. Don't become a court by themselves and try to figure out the facts..as long as court won't decide so please shut your mouth and shut down trying to pin point on their video 😊

[Spence Tepper]

Hi "Karen"
What is your, your family or friends association with RSSB?
And what is your religious belief?

Brian Ji literally gave decades of devotion to RSSB....

He gave them his best years. Now they are getting some of his worst. Or maybe these are his best.

He has a right for another thirty years to wax eloquent about RSSB.

But I'm trying to understand your reason for addressing this issue.

There are plenty of opportunities to help the world in your own community.

However, Brian Ji is eminently qualified on this subject, in particular to deal with all worldly aspects of the rssb organization, and the philosophy, from a scientific and philosophic as well as from a Zen perspective. He is qualified to provide objective information to those with an interest in rssb,, and has done so with discipline and as a Seva to Truth. He had been nforming others so they have a full picture, informed picture, and are then fully qualified also to make their own adult decisions. Definitely Seva of the highest order.

[manoj]

@Karan

If you like being in a self employed manipulating state that's your free will. But everyone has a right and an perspective to believe in they're own views and certainly Brian has gained that threw years and years of personal experience. Freeing souls from a deceptive and manipulative cult like RS should be is every ones Seva, yours too. GSD is a low life blood sucking leach which even leaches from his own family as Malvinder will tell you and many others. It would be wise to know the ultimate truth than just to throw your weight around, which holds no weight here, whatsoever. You may need to shut your own pie hole too before telling others to and next time think before you speak. Have some respect (GSD) satan's child.

[Ikram]

There are too many blind people that are falling for the love and light circus Show and slavery, (that is branded as seva) which the rssb institution and their so called leader, GSD portray for the total control of the innocent. Little do these poor souls know that it is a complete loss of this opportunity they call life. The sangat are raped of their own self esteem, while the rssb cult gains everything - just look at how far and fast it has expanded and how the sangat have gained nothing, but get deeper into the void and more confusion. You have a duty to call out these fake charlatan gurus. How else can this parasite virus get the trust of the innocent people and overpower there ability to reason.