Letter by Dr. Kirit Somaiya to the Virappa Moily regarding Bhujbal Tatkare bogus companies scam

Annaxture

Hon Minister
Ministry of Corporate Affairs,
New Delhi.

Dear Sir,

Sub: Investigation & Inspection under Companies Act Sec 234 to 251……

Ref: 1. Misuse/Violation of Companies Act for Money Laundering

2. Scams by Mr. Sunil Tatkare & Mr. Chagan Bhujbal, Ministers in Maharashtra through web(net) of bogus companies companies

Mr. Sunil Tatkare is the Irrigation Minister & Mr. Chhagan Bhujbal PWD Minister of Maharashtra are in Media for controversy regarding Corrupt Practices & Misuse of Power. Both the groups seems to be involved in money laundering activities, parking scam money, using the medium of incorporated entities, public and private limited companies.

We are submitting herewith various documents & request you to order special investigation under section 234 to 251…..of Companies Act

Special Inspection & Investigation Required for

We visited couple of such companies & found no such companies, directors, available/traceable on the addresses mentioned in the records e.g. Hingora Finvest, Mangal Sago, Minu Text, Ashoka Investment.

Our team has studied the data accessed from the Ministry of Corporate Affairs. We have come across many irregularities from the analysis and perusal of the documents.

Scams of Shri Sunil Tatkare

Tatkare Friends and Family started multiple private limited companies in various fields and issued shares to individuals and small firms at sky high premiums, which were bought back later at rock bottom prices.

In one case premium was 49 times its face value and bought them back after some time at throwaway prices.

1) Multiventure Financial Services Pvt Ltd has its registered office in Mumbai, Nariman Point's Maker Chambers V, an expensive commercial building.

The company declared an accumulated loss of Rs 24 lakh till last year, yet managed to sell 19,000 shares of Rs 100 each to five Kolkata-based firms at a huge premium of Rs 1,900 per share. Multiventure’s loss was no deterrence for investors— it got share application money of Rs 7 Crore during the financial year ending March 31, 2011.

2) Next Technologies (India) Pvt Ltd

Year 2006 – Company issued 1, 90,575 shares with a face value of Rs 10 each at a premium of Rs 390 per share and collected close to Rs 8 Crore.

On May 15, 2010, these shares were bought back by three of Tatkare's associate companies at just Rs 11 per share. The three firms are Multiventure Financial Services (87,173 shares), Multiventure Properties (87,172 shares) and Multiventure Fisheries (1, 16,230 shares), which paid a total of Rs 32 lakh for the buyback

In the Year 2006 shares were sold at Rs. 8 Crore and in the year 2010 - buy back price was only Rs. 32 Lakh.

3) Multiventure Properties Pvt Ltd

The Co showed an accumulated loss of over Rs 2 lakh [A loss making company]

But same year Multiventure Properties Pvt Ltd sold 35,600 shares (face value of Rs 10 each) at a premium of Rs 490 per share in September 2009. Company collected Rs. 2 Crore. Seven Months later – on April, 30, 2010 - these shares were bought back for a total of Rs 3.56 lakh Year 2009 sold at Rs. 2 Crore and year 2010 buy back price is Rs 3.56 lakh

What happened in the interim 7 months that prices went so low? What was the company’s business before 7 months and after 7 months?

4) Multiventure Agro and Infra Pvt Ltd

In the year March 2009 –Company issued issued 1.75 lakh shares (face value of Rs 10 each) at a premium of Rs 90 per share. After an year later, the above shares were bought back by Bay Tree Agri Farms and Appleberry Agro Tech for Rs 10 each or a total of Rs 17.5 lakh.

It has been observed that Multiventure Agro & Infrastructures Pvt. Ltd. has a shareholding pattern where 45% percent of the shares (Annexure List of shareholding of Multiventure Agro & Infrastructure Pvt. Ltd.) are owned by Yash V Jewels, a company which is banned by SEBI from buying, or dealing in any securities vide its order dated 23^rd April 2009.

Tatkare’s thus created layers of companies to cover up the actual beneficiaries & investors. Companies are formed in the name of close associates, employees, agents & dummies.

Scams of Shri Chhagan Bhujbal Group

Shri Chhagan Bhujbal, PWD Minister in Maharashtra, his friends & family group of companies seem to be involved in lots of benami transactions.

Parvesh Construction Pvt Ltd

Parvesh Construction Pvt. Ltd. is one of the scandalous companies of Bhujbal Group, found involved in abnormal money laundering transactions. Shares of this company have been bought by dozen benami/bogus companies @ Rs 10,000/per share during 2008 to 2011. Parvesh Construction a negative net worth, loss making co. but received premium of Rs 9,900/per share. Received Rs 100 crores from the transactions of 1 lac shares from 31 Ghost & Benami Companies/Entities.

Such Companies/Bank Accounts are opened for money laundering only. Companies/bank accounts are closed as soon as the black money, scam money transferred into the beneficiaries’ accounts. In this case none of these 31 entities are found genuine.

The company is owned by Mr Samir Bhujbal (Nephew), Mr Pankaj Bhujbal (Son) & Mr Jitendra Wagh (son in law of Mr Bhujbal). Parvesh Construction Pvt. Ltd had few crores turn over & incurring losses according to the Audited Accounts of the Company (obtained from Ministry of Corporate Affairs).

Bogus Companies

Of these 31 companies, we visited the places of the 4 companies located in Mumbai, as per the directors/auditor reports. These companies have purchased 58,330 Shares of Parvesh Constructions @ Rs 10,000 each i.e. Rs 58.80 crores. None of the companies exist on these addresses. Bogus addresses and forged documents used by for Money Laundering.

Bhujbal & Tatkare’s hundreds of bogus/benami/ghost companies

Both the groups have created, indulges into creating web of bogus companies & converted hundreds of crores scam/black money into white. We have given just few example to explain the modus operandi. We are enclosing various sets of documents including:

We request you to order a special investigation in both these matters to protect thousands of crores loss to the government.

Thanking You

Yours Sincerely

Kirit Somaiya Ex MP
BJP National Secretary