New development in Singh brothers/RSSB guru scandal may not mean much

Today someone sent me a link to a November 12, 2o20 story in the Economic Times, "Sebi disposes of proceedings against 16 entities in Religare Finvest fund diversion case."

That person wondered if this meant that Gurinder Singh Dhillon, the guru of Radha Soami Satsang Beas, had been cleared of wrongdoing in the complex financial scandal involving the Dhillon family and their relatives, Malvinder and Shivinder Singh, along with associates of the guru such as Sunil Godhwani.

I've copied in the Economic Times story below. It's difficult to know what to make of it. As far as I can tell, no other publication in India has written about this development. So my suspicion is that this doesn't clear Dhillon.

Here's my reasoning.

Based on previous reporting in the Indian financial press, the 16 entities named in the story appear to be mostly, and maybe completely, shell companies. Meaning, they weren't actually doing business, but rather served as pass-throughs for other purposes, legal or illegal. 

This Business Today graphic, which I've shared before, shows the reputed scheme in broad-brush strokes. Money siphoned from companies once controlled by the Singh brothers flowed into the shell companies, then into the pockets of the RSSB guru and his family.

So it makes sense that currently the shell companies would have few, if any, assets. After all, the SEBI (Securities and Exchange Board of India) allegation was that the shell companies were used to move money around, not that the fraud consisted of transferring money into the shell companies and leaving it there.

Further, my understanding is that the management (directors) of the shell companies has changed since the purported fraudulent transactions took place. This also could explain why the 16 entities no longer are part of the SEBI proceedings. 

Currently there is nothing to investigate at the shell companies. Rather, the questions are: (1) Who ended up with the money that flowed through the shell companies? and (2) Who orchestrated these transfers of money?

Again, I'm just expressing my opinion here, since the story below is vague about what the SEBI action means in the context of the accusations against Malvinder Singh and Dhillon, who has been accused by Malvinder of masterminding the diversion of money. 

Note that the story doesn't say that SEBI has given up on recovering the diverted money from every entity (which I assume includes individuals) involved in this case -- just from the 16 entities, largely or entirely shell companies, mentioned in the story. 

So I doubt that this is the end of the scandal. Perhaps we'll learn more on November 26 when a bail hearing for Malvinder in regard to the money laundering case has been rescheduled. Malvinder and his attorney keep saying that Gurinder Singh Dhillon is the real culprit, not Malvinder.

Here's the Economic Times story.

Sebi disposes of proceedings against 16 entities in Religare Finvest fund diversion case

Among the 16 entities, the names of two entities have already been removed from the list by the regulator.

Markets regulator Sebi on Thursday disposed of adjudication proceedings against 16 entities for their alleged involvement in Religare Finvest's fund diversion matter.
The entities were alleged to have been involved in diversion of funds amounting to Rs 2,315.09 crore from the books of Religare Finvest Ltd (RFL), a subsidiary of Religare Enterprises Ltd (REL), for the utilisation of promoters and promoter group entities of REL.

Shivinder and Malvinder Singh were promoters of REL.

Further, 14 names have been removed from the list of entities from whom REL and RFL were directed to recover the loan amount, Sebi said in an order.

Among the 16 entities, the names of two entities have already been removed from the list by the regulator.

Sebi, through an interim order in March 2019, had directed REL and RFL to initiate steps to recall all the loans, amounting to Rs 2,315.09 crore, extended directly or indirectly to certain entities -- including the 16 entities -- along with due interest, within three months.

The entities were also directed not to dispose of any of their assets or divert any funds, except for meeting expenses of day-to-day business operations, without the prior permission of Sebi, pending completion of the investigation and till further orders.

Subsequently, Sebi had confirmed the directions through an order passed in September 2019. However, the directions issued against two entities -- OSPL Infradeal Pvt Ltd and Bharat Road Network Ltd NSE 0.33 % -- were revoked.

Further, the names of OSPL Infradeal and Bharat Road Network were removed from the list of entities from whom REL and RFL were directed to recover the loan amount.

Pursuant to completion of investigation in the matter, Sebi, in an order on Thursday, revoked the directions issued through the interim as well as confirmatory orders against the 14 entities. The watchdog also disposed of the ongoing proceedings against all the 16 entities.

The other 14 entities are Platinum Infrastructure, Ad Advertising, Artifice Properties, Best Health Management, Devera Developers, Vitoba Realtors, Fern Healthcare, Modland Wears, Rosestar Marketing, Star Artworks, Tripoli Investment, Volga Management and Consultancy, Zolton Properties and Ranchem Private Ltd.

Through a separate order, the regulator has disposed of ongoing proceedings against three entities -- Best Healthcare, Fern Healthcare and Modland Wears -- in the Fortis Healthcare case.

It was alleged that the entities were involved in diversion of funds amounting to Rs 403 crore from the books of Fortis Hospitals Ltd, a subsidiary of Fortis Healthcare Ltd NSE -1.59 % (FHL) for the utilisation of promoters and promoter group entities of FHL.

The issue pertains to the affairs of FHL, which were being managed by the erstwhile promoters -- the Singh brothers. It was alleged that the Singh brothers had siphoned off the funds of FHL to promoter-related entities through layers of companies which were controlled by them.

Sebi, in October 2018, had directed FHL to recover Rs 403 crore, along with interest, from nine entities. The regulator had also directed the entities to jointly and severally repay the amount to Fortis Hospitals and FHL.

Besides, the entities were restrained from disposing of the assets pending investigation. The nine entities included Best Healthcare, Fern Healthcare and Modland Wears.

In its latest order, Sebi said it "revokes the directions issued vide the interim order read with confirmatory order against the... 3 noticees (viz. Best Healthcare Pvt Ltd, Fern Healthcare Pvt Ltd and Modland Wears Pvt Ltd ) and also dispose of the ongoing proceedings... against them".

Comments

[Dan the man]

“Sebi, in October 2018, had directed FHL to recover Rs 403 crore, along with interest, from nine entities. The regulator had also directed the entities to jointly and severally repay the amount to Fortis Hospitals and FHL.

Besides, the entities were restrained from disposing of the assets pending investigation.”

The way the article talks about entities makes them sound like people. Maybe in India corporations are treated like people.

I don’t know where they found the time to launder all that money. You’d think just coming up with names for all those shell companies would have been a full-time job. How many are there, like a thousand?

It’s interesting how hard working some criminals are.

[Uchit]

Don't forget Gurinder singh dhillon is a billionaire baba. He also has political connections and voting power - related to manjeetia, and in bed with the badals. This means he will be difficult to pin down as there is massive corruption in India in the shadows. He is in a desperate state as he desperately tries to mend his broken public image. Let's hope truth prevails and this fraudster gets locked up, and they throw away the key.

[Gatka]

Sikh community bombarding rssb here.

[Uchit]

@Gatka
You look like an rssb porn. Why don't you ask yourself why your so called pure sant guru, use to say " to ruin a person's life, just give him a million pounds ", and now this fraudster is a billionaire baba, (great promotion from working in sales prior )- by the way he doesn't even dispute he has the money. Why has GSD wife timely and very convenient death has meant some of his charges are dropped? why did this clever trickster spread the money out to others in his family? Finally why doesn't he show his taxes , instead of hiding them in sealed envelopes in dehli court? Looks like he has plenty to hide from the sangat . It's clear that the Fake guru is hiding from facing his karma.

[Sonia]

“Good teachers never terrorise their students. To terrorise is to attack, and this results in rejection of what the teacher offers. The result is learning failure.”

As a teacher, guardian, friend this is helpful to keep in mind. Some days are more challenging than others.

[Spence Tepper]

In America we have the evil of predatory, prosperity evangelism.
But it doesn't take a rocket scientist to understand for this can also apply to the question of "how did my guru get so rich?"

https://youtu.be/7y1xJAVZxXg

People believe in they concept of seed money, that somehow giving the money to their spiritual leader is a godly thing to do, and will benefit themselves later.. When the seed is harvested.

[Dungeness]

@ People believe in they concept of seed money, that somehow giving the
@ money to their spiritual leader is a godly thing to do, and will benefit
@ themselves later.. When the seed is harvested.

Speaking of harvesting, does anyone remember Dudley Moore's
"Bedazzled".... It's a memorable movie about being careful what
you wish for. Those damned seeds will always sprout.

[S]

@Dungeness

I wish I didn’t have emotions 🤞

Let’s hope that comes true. I think we’d all be perfectly rational without emotions.

[manoj]

Congratulations GSD
What a shambolic indian movie GSD you have single handedly starred, produced and directed in.
I guess you always wanted to be that hero but ended up playing the dirty deceitful rotten villain you always were. Hiding behind a nasty weaved curtain of lies. You know the villain always gets it in the end and your end is nigh. Rest assured karma's gonna soon catch up with your evil ways. Here's wishing your movie is a flop.

[Truthwarior]

Dr. Jakyll and Mr Hyde, is the story of GSD . Dr. Jakyll is all what all the sleeping sangat see on stage, the actor with a perfect trimed beard, clothing of a saint. The shabad singers set to lure you into a state of hypnomatic seduction.
But if you peel back the image / facade, and look at his actions he is hiding the beast called Hyde. The black eyed demon, ulter ego, the real master incontrol of the physical body. It's a fascinating read

[GP]

"When we see men of contrary character, we should turn inwards and examine ourselves."

[GP]

.....Confucius

[S]

@GP
You should be pleased