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.