IN THE HIGH COURT OF DELHI AT NEW DELHI.
(ORIGINAL JURISDICTION)
C.A. No 867 OF 2011
IN
C.P. No. 265/1998, 266/1998, 267/1998 & 385/1998
IN THE MATTER OF COMPANIES ACT,1956.
AND IN THE MATTER OF
i. M/s JVG FINANCE LIMITED (IN LIQUIDATION)
1. M/s JVG SECURITIES LIMITED (IN LIQUIDATION)
2. M/s JVG LEASING LIMITED (IN LIQUIDATION)
3. M/s JVG DEPARTMENTAL STORES LIMITED (IN LIQUIDATION)
THROUGH OFFICIAL LIQUIDATOR, A2,W2, CURZON ROAD BARRACKS,
KASTURBA GANDHI MARG, NEW DELHI
INDEX
________________________________________________________________
S.NO.
PARTICULARS
PAGES
COURT FEE
________________________________________________________________
1. MEMO OF PARTIES
2. APPLICATION U/S 542 &
543 OF THE COMPANIES
ACT, 1956 ON BEHALF OFFICIAL
LIQUIDATOR ATTACHED TO THE
HON'BLE HIGH COURT OF DELHI.
3. LIST OF WITNESSES
4. AFFIDAVIT
5. ANNEXURE A
6. ANNEXURE B
7. ANNEXURE C
8. ANNEXURE D
9. ANNEXURE E
10. ANNEXURE F
11. ANNEXURE G
12. ANNEXURE H
13. ANNEXURE I
14. ANNEXURE J
15. ANNEXURE K
16. ANNEXURE L
17. ANNEXURE M
18. ANNEXURE N
19. ANNEXURE O
20. ANNEXURE P
21. ANNEXURE Q
22. ANNEXURE R
23. ANNEXURE S
24. ANNEXURE T
25. ANNEXURE U
26. ANNEXURE V
27. ANNEXURE W
28. ANNEXURE X
29. ANNEXURE Y
30. ANNEXURE Z
31. ANNEXURE AA
32. ANNEXURE AB
PLACE: NEW DELHI
DATE: 07th APRIL, 2011
-Sd /(MOHD. SHAKEEL)
ASSTT. OFFICIAL LIQUIDATOR
DELHI HIGH COURT
THROUGH
-Sd /RAJIV BAHL
(ADVOCATE)
Filing No.55476 dated 07.04.2011
IN THE HIGH COURT OF DELHI AT NEW DELHI.
(ORIGINAL JURISDICTION)
C.A. No 867 OF 2011
IN
C.P. No. 265/1998, 266/1998, 267/1998 & 385/1998
IN THE MATTER OF COMPANIES ACT,1956.
AND IN THE MATTER OF
1. M/s JVG FINANCE LIMITED (IN LIQUIDATION)
2. M/s JVG SECURITIES LIMITED (IN LIQUIDATION)
3. M/s JVG LEASING LIMITED (IN LIQUIDATION)
4. M/s JVG DEPARTMENTAL STORES LIMITED (IN LIQUIDATION)
THROUGH OFFICIAL LIQUIDATOR, A2,W2, CURZON ROAD BARRACKS,
KASTURBA GANDHI MARG, NEW DELHI
MEMO OF PARTIES
THROUGH OFFICIAL LIQUIDATOR
A2, W2, CURZON ROAD BARRACKS, K. G. MARG, NEW DELHI
............APPLICANT
VERSUS
1. SH. V. K. SHARMA
(Ex-CMD, JVG GROUP OF COMPANIES IN LIQUIDATION)
A-1, BIRLA FARMS, HOUSE No. 45, CHHATARPUR EXTENSION,
NEW DELHI.
2. SMT. VEENA SHARMA
(W/o SH. V. K. SHARMA)
F-1308A, W-5 LANE,
SAINIK FARM, NEW DELHI
3. Sh. NARENDAR KUMAR MALIK
S/O SH. R. D. MALIK,
B-103, GREATER KAILASH
NEW DELHI
4. SH. SATINDER DUTTA
(BROTHER IN LAW OF SH. V K SHARMA)
12/78, GITA COLONY, DELHI.
5. SH. VINAY KUMAR SHARMA
A-1, BIRLA FARMS, HOUSE No. 45, CHHATARPUR EXTENSION,
NEW DELHI.
6. SH. ANTONIO FILIPE GEORGE
FLAT No. 4, GROUND FLOOR
KARTAR BHAWAN, MINOO DESAI RAOD,
BEHIND RADIO CLUB
COLABA, MUMBAI.
7. SH. RAM KUMAR BANSAL
8. SH. SANJAY KUMAR
9. SH. KISHAN LAL ANAND
32-B, PUSA ROAD
NEW DELHI.
10. Sh. T.S. BHAN
(EX-DIRECTOR)
S/O ASSA SINGH BHAN
551, SECTOR 37, NOIDA
UTTAR PRADESH
11. SH. B.P. SINGH
(EX-DIRECTOR)
S/O LATE SHRI RAM KARAN SINGH
C-1/1646,
VASANT KUNJ
NEW DELHI
12. SH. D.K. KAPUR
(STATUTORY AUDITOR)
296, FOREST LANE,
NEB SARAI
NEW DELHI
13. SH.DEEPAK ASIJA
(COMPANY SECRETARY)
S/O SH. T. D. ASIJA,
282, SEEMANT UDHAR, KAUSHAMBI,
GHAZIABAD 201012
14. SMT. MEENAKSHI SHARMA
A-1, BIRLA FARMS, HOUSE No. 45, CHHATARPUR EXTENSION,
NEW DELHI.
15. SH. VISHAL SHARMA
S/O SH. O . P SHARMA
F1/A, RADHEY PURI
NEW DELHI
16. SMT. RITU SHARMA
D/O BRIJ NATH MALHOTRA,
F-1/A, BLOCK-F,
RADHEPURI, DELHI
17. SMT. URMILA RANI SHARMA
A-1, BIRLA FARMS, HOUSE No. 45, CHHATARPUR EXTENSION,
NEW DELHI.
18. SH. RAJESH SHARMA
S/O SH. KRISHAN LAL SHARMA
6/32, STREET NO. 3, VISHWAS NAGAR,
SHAHADRA, NEW DELHI
19. SMT. RAJNI SHARMA
A-1, BIRLA FARMS, HOUSE No. 45, CHHATARPUR EXTENSION,
NEW DELHI.
20. SH. RAVINDER KUMAR MISHRA
21. SH. PRAVEEN KUMAR SARIN
(STATUTORY AUDITOR)
S/O SH. PRAVEEN KUMAR SARIN
47, RAJAN KUNJ, ROORKEE ROAD,
MEERUT
22. SH. A.B . SINGH
(COMPANY SECRETARY)
23. SH. P. SEETHARAM
(STATUTORY AUDITOR)
S/O M R PARAMESWARAM,
A-38, 187, 1ST FLOOR,
CHANDAR NAGAR, JANAKPURI,
NEW DELHI-110 038.
24. SH. S.P. KAPIL
(EX-DIRECTOR)
25. SH. M.C. JOSHI
(EX-DIRECTOR)
26. SH. BHARAT BHUSHAN SHARMA
(PRESENTLY KNOWN AS VINAY KUMAR SHARMA, Ex-DIRECTOR)
S/O P. P. SHARMA
F-1, RADHEY PURI, KRISHNA NAGAR,
DELHI 110051
27. SH. RAJENDRA KUMAR GOEL
(EX-DIRECTOR)
28. SH. RAM PABITRA SINGH
(EX-DIRECTOR)
S/O J P SINGH,
C-6/5, KUNDAN HOUSE,
NEW DELHI. 110 006.
29. SH. BIRESH PRASAD SINGH
(EX-DIRECTOR)
LATE RAM KARAN SINGH,
R/O C-1/1646, VASANT KUNJ,
NEW DELHI.
30. SH. P.C. SOOD
(EX-DIRECTOR)
31. SH. KRISHNA MURARI SHARMA
(EX-DIRECTOR)
S/O P D SHARMA,
G-62 B, KALKAJI,
NEW DELHI.
32. SH. SURYA THAPAR
(EX-DIRECTOR)
S/O KIRTI CHAND THAPAR,
E-32, SAINIK FARM,
NEW DELHI-61.
33. SH. DINESH PARASHAR
(EX-DIRECTOR)
34. SH. SUKHBIR SINGH
(EX-DIRECTOR)
35. SH. BHANWAR SINGH
(EX-DIRECTOR)
36. SH. SANJAY SHARMA
(EX-DIRECTOR)
37. SH. PAWAN KUMAR
(EX-DIRECTOR)
S/O BANARSI DAS,
C-1/1406, VASANT KUNJ,
NEW DELHI.
38. SH. LALLAN KUMAR SINGH
SHAILENDRA SINGH & CO.
N-20 (LGF), JANGPURA EXTENSION
NEW DELHI-110014.
39. M/s INDIA CEROILS LTD.
(NOW M/S FINITE INFRATECH)
40. M/S COGENT VENTURE (INDIA) LIMITED
COGENT HOUSE
Y-14A, GREEN PARK MAIN
NEW DELHI-16
41. M/s INDIA PACIFIC SECURITIES & FINANCIAL SERVICES LTD..
C/o SH. SAHSHI SAIGAL
S/o SH. MILK RAJ NAYYAR
D-831, NEW FRIENDS COLONY
NEW DELHI - 110025
42. M/s RAKESH KAPUR & Co.
C/o RAKESH KAPOOR
S/o Lt. SH. O.P. KAPOOR
G-1, SAKET
NEW DELHI
43. M/s RUBY RED FINANCE & INVESTMENT PVT. LTD.
44. M/s PRIZE SECURITIES PVT. LTD.
45. M/s ANGAD LEASING LIMITED
46. M/s AKASH GANGA MERCANTILE LIMITED
47. M/s MAURYA OVERSEAS LIMITED
............RESPONDENTS
PLACE: NEW DELHI
DATE:07th APRIL, 2010
-Sd /(MOHD. SHAKEEL)
ASSTT. OFFICIAL LIQUIDATOR
DELHI HIGH COURT
IN THE HIGH COURT OF DELHI AT NEW DELHI.
(ORIGINAL JURISDICTION)
C.A. No 867 OF 2011
IN
C.P. No. 265/1998, 266/1998, 267/1998 & 385/1998
IN THE MATTER OF COMPANIES ACT,1956.
AND IN THE MATTER OF
1. M/s JVG FINANCE LIMITED (IN LIQUIDATION)
2. M/s JVG SECURITIES LIMITED (IN LIQUIDATION)
3. M/s JVG LEASING LIMITED (IN LIQUIDATION)
4. M/s JVG DEPARTMENTAL STORES LIMITED (IN LIQUIDATION)
THROUGH OFFICIAL LIQUIDATOR, A2,W2, CURZON ROAD BARRACKS,
KASTURBA GANDHI MARG, NEW DELHI
APPLICATION ON BEHALF OF THE OFFICIAL LIQUIDATOR ATTACHED TO
THE HON'BLE HIGH COURT OF DELHI AT NEW DELHI UNDER SECTION
542 & 543 OF THE COMPANIES ACT, 1956 READ WITH SECTION 58 A (6),
209(6), 446, 539, 628 AND 629 OF THE COMPANIES ACT, 1956, RULE 9 OF
THE COMPANIES (COURT) RULES, 1959 AND VOILATION OF SECTION
191, 193, 405, 406, 409, 418 AND 420 OF THE INDIAN PENAL CODE 1860.
THE OFFICIAL LIQUIDATOR MOST RESPECTFULLY SHEWETH AS
UNDER:1. That on 5th June 1998 this Hon'ble Court had appointed the Official
Liquidator as its provisional liquidator of M/s JVG Finance Limited
(JVGFL), JVG Leasing Limited (JVGLL) and JVG Securities Limited
(JVGSL) and the said companies
wound up vide orders dated
29.08.2003. The Official Liquidator attached to the Hon'ble High Court of
Delhi was appointed as its Liquidator. On 8th March, 2001 this Hon'ble
Court had appointed Provisional Liquidator of M/s JVG Departmental
Stores Limited (JVGDSL)and passed winding up order on 29.08.2003 and
the Official Liquidator attached to Hon'ble High Court of Delhi was
appointed as its Liquidator. The aforesaid Companies form JVG Group of
Companies and all are in liquidation, as detailed above.
2. That this office has received various reports from Serious Fraud
Investigation Office (SFIO), a Central Government Investigation Agency
who are conducting inquiry into the affairs of JVG Group of companies (In
Liquidation). SFIO moved an application u/s 446 of the Companies Act,
1956 before the Hon'ble High Court of Delhi in September, 2007 seeking
permission to start the investigation into the affairs of the JVG Group of
Companies (In Liquidation). The Hon'ble High Court of Delhi, vide its order
dated 19.09.2007 granted necessary permission to SFIO to start the
investigation.
3. That the Official Liquidator had filed a Report bearing No. 296/2009 vide
diary No. 22095 dated 04.11.2009 for seeking permission of this Hon'ble
Court to file applications under sections 446, 542 and 543 of the
Companies Act, 1956 and against the delinquent directors, officers of the
companies (in liquidation) and others.
4. That this Hon'ble Court vide its order dated 12.11.2009 permitted the
Official Liquidator to take action as proposed. The Copy of order dated
12.11.2009 is enclosed herewith and marked as Annexure – “A” for kind
perusal of the Hon'ble Court.
5. That this office has received a report dated 23.04.2009 from Serious
Fraud Investigation Office (SFIO), a Central Government Investigation
Agency who are conducting inquiry into the affairs of JVG Group of
companies (in liquidation). In the said report SFIO disclosed that Sh. V K
Sharma, Ex-CMD, JVG Group of Companies (in liquidation) & his relatives
have illegally purchased the land bearing Khasra No. 13/5 & 13/6 area of
6 Bigha 6 Biswa, property No. 130A, Sainik Farms, Delhi by using the
funds of M/s JVG Finance Limited in his own name and in the names of
his relatives. However, Sh V K Sharma & his relatives have not disclosed
this fact before the Official Liquidator and Hon'ble High Court till date. Sh.
V K Sharma, in his affidavit dated 07.09.1999 in compliance of Order
dated 16.08.1999 has falsely claimed that aforesaid land as his “own
property”. Copy of affidavit dated 07.09.1999 is annexed as Annexure –
“B” for kind perusal of the Hon'ble Court- . However, out of the said land
only about 3000 sq. yds, i.e. the area covered by property No. 130A,
Sainik Farms, including Dev Niwas, Delhi is presently in the possession
of Smt. Veena Sharma W/o Sh. V K Sharma. For rest of the land, Sh.
Sharma has created third party interests by way of unregistered general
power of attorneys or agreements to sell and physical possession has also
been given by Sh. V.K. Sharma & his relatives to the subsequent
purchasers. The SFIO in its report specified that as the land in question
has been given simply on the strength of unregistered documents,
concrete documentary evidence in support of the above transactions could
not be collected from Revenue Department. It is clear from the above that
Sh. V K Sharma has knowingly mislead this Hon'ble Court by furnishing
false information. The said fact is not disclosed by the Ex-Director either in
Statement of Affairs or statement recorded in the office of Official
Liquidator. Also these transactions relating to purchase of these properties
have been covered by CBI from the point of view of siphoning of Company
funds. Copies of Statement of Affairs filed by Sh. V K Sharma Respondent
No. 1 of M/s JVG Finance Limited (In Liquidation) dated 07.09.1999 and
09.08.2005, M/s JVG Leasing Limited (In Liquidation) dated 07.09.1999
and 25.07.2005 and M/s JVG Securities Limited (In Liquidation) dated
08.09.1999 and 25.07.2005 are annexed as Annexure – “C” (Colly) for
kind perusal of the Hon'ble Court.
As per section 628 of the Companies Act, 1956, if in
any return,
certificate, balance sheet, prospectus, statement or other document
required by or for the purposes of any of the provisions of the Companies
Act, 1956, any person makes a statement i.
which is false in any material particular, knowing it to be false; or
ii. which omits any material fact, knowing it to be material;
he shall, save as otherwise expressly provided in this Act, be
punishable with imprisonment for a term which may extend to two
years, and shall also be liable to fine.
It is, therefore, clear that Sh V K Sharma has knowingly given false
affidavit before the Hon'ble High Court by claiming that the aforesaid land
is his own property. In this connection, it is stated that Section 191 of the
Indian Penal Code, 1860 deals with giving false evidence on oath.
Section 191 of the Indian Penal Code, 1860 is reproduced below:“Whoever, being legally bound by an oath or by an express provision
of law to state the truth, or being bound by law to make a declaration
upon to state the truth, or being bound by law to make a declaration
upon any subject, makes any statement which is false, and which he
either knows or believes to be false or does not believe to be true, is
said to give false evidence.”
The main ingredients of the offence under the above section are
summarized as under and the offence under the said section is made out:i.
A person must be legally bound; (i) by an oath, or any express
provision of law, to state the truth; or (ii) to make a declaration upon
any subject.
iii. He must make a false statement
iv. He must; (i) Know or believe it to be false, or (ii) not believe it to be
true.
Section 193 of the Indian Penal code, 1860, lays down as under:
“Whoever intentionally gives false evidence in any stage of a judicial
proceeding, or fabricates false evidence for the purpose of being used
in any stage of a judicial proceeding, shall be punished with
imprisonment of either description for a term which may extend to
seven years, and shall also be liable to fine, and whoever intentionally
gives false evidence in any other case, shall be punished with
imprisonment of either description for a term which may extend to
three years, and shall also be liable to fine.”
5.1) That in the instant case Sh. V K Sharma, being Ex-MD of JVG
Finance Limited (In Liquidation) was fully aware of the fact about the
source of acquiring the aforesaid piece of land, i.e from the funds of JVG
Finance Limited and acquiring the said property in his own name and/or in
the names of his relatives. Despite this specific knowledge, Sh. V K
Sharma deliberately gave a false statement in the affidavit on oath before
the Hon'ble High Court of Delhi. The copy of report dated 17.04.2009 of
SFIO along with relevant documents is enclosed herewith and marked as
Annexure – “D” for kind perusal of the Hon'ble Court.
5.2) That M/s JVG Finance Limited has issued cheques for payment from
its bank account with Corporation Bank, Bhikaji Cama Place, New Delhi to
Shri Narender Kumar Malik & his family amounting to Rs. 72 lakh during
the year 1996. On verification by SFIO it is revealed that Sh. V K Sharma
& his family purchased a piece of land bearing Khasra No. 13/5 & 13/6
situated at village Devli, Delhi by using the funds of M/s JVG Finance
Limited. The aforesaid property, though clearly purchased from out of
funds of JVG Finance Limited, has not been shown in the Company's
Balance Sheet as assets under the relevant schedule i.e. “Fixed Assets”
and the purchase consideration of Rs. 72 Lakhs has been shown as
advance to Malik family in the “Loans & Advances” schedule to the
Company's balance sheet as on 31.03.1997. The alleged purchase of the
said property is explained with the following chart
CHART-1
M/s JVG Finance Limited (In Liq.)
issued cheques for payment from its bank
account with Corporation Bank, Bhikaji
Cama Place, New Delhi, amounting
to Rs. 72 Lakh.
To
Sh.Narinder Kr. Malik & his
family who
Purchased
130A, Sainik Farms, New Delhi (bearing
Khasra No. 13/5 &13/6 situated at village:
Devli, Mehrouli) in the name of V.K. Sharma
and his relatives.
That as per the findings of SFIO the above property was purchased from
the funds of JVGFL (in liq.) and the Official Liquidator be allowed to take
possession of the above said property.
6. That SFIO vide its same report dated 17.04.2009 informed this office that
a sum of Rs. 9,72,85,739/- (Nine Crore Seventy Two Lacs Eighty Five
Thousand Seven Hundred Thirty Nine only) has been shown as loan due
from Sh. V. K. Sharma and his relatives as on 31.03.1997 as per Balance
Sheet of the Co. (in liquidation) as on 31.03.1997. The said fact is not
disclosed by the Ex-Director either in Statement of Affairs or statement
recorded in this office. The copy of balance sheet as on 31.03.1997 is
enclosed herewith and marked as Annexure – “E” for kind perusal of the
Hon'ble Court.
That Sh. V K Sharma Ex-CMD, JVG Group of companies (In Liqn.) and
his relatives be directed to deposit Rs.9,72,85,739/- (Nine Crore Seventy
Two Lacs Eighty Five Thousand Seven Hundred Thirty Nine only) along
with interest @ 18% p.a. with the Official Liquidator, Delhi which has been
shown as loan due from Sh. V K Sharma and his relatives in the Balance
Sheet as on 31.03.1997.
7. That during the investigation by SFIO Sh. V K Sharma disclosed that
during period October 1997 to May 1998, his relatives namely, Shri Vinay
Kumar Sharma, Smt. Seema Sharma, Smt. Minakshi Sharma, Smt. Ritu
Sharma, Smt. Rajni Sharma, Smt. Urmila Rani, Sh. Rajesh Sharma & Sh.
Vishal Sharma etc., including Sh. V.K. Sharma, have sold their properties
and the sale proceeds amounting approximately to Rs 12 Crore (Twelve
Crores only) was given to M/s JVG Finance Limited & Other JVG Group of
companies and this was utilized by them to repay the deposits. He was
unable to produce any documentary evidence in support of his above
statement to SFIO.
7.1) That SFIO examined the available bank accounts of Sh. V K Sharma
and his aforesaid relatives during the course of their investigation. No
such transaction of repayment of loan amount to JVG Finance Limited
were found, during the period from October 1997 to May 1998. Sh. V K
Sharma and his relatives also failed to furnish any document/evidence in
support of above contention with SFIO. Moreover, the above said relatives
of Sh. V K Sharma have disclosed to SFIO that they have only signed the
papers, cheques etc on the direction of Sh. V K Sharma and they did not
have knowledge about the above transactions.
That Sh. V.K. Sharma, Ex-Director, be directed to clarify the above said
alleged transaction worth Rs. 12 Crore to the Official Liquidator.
8. That as per SFIO report dated 08.04.2009 it is revealed that according to
balance sheet as on 31.03.1998, it is observed that M/s JVG Finance
Limited & M/s JVG Departmental Stores Limited have invested Rs. 1.5
Crore (Rs. 75 Lac each) to purchase 15 lacs shares (7.5 Lac each) of M/s
India Ceroils Limited (Now M/s Finite Infratech Limited). During
investigation by SFIO it is noticed that these shares have been transferred
to M/s Cogent Group of Companies, during the year 2003-2004 after the
winding up of JVG Group of companies (in liquidation). In this period Sh. V
K Sharma, Ex-CMD of JVG Group was Director of M/s India Ceroils
Limited. The copy of SFIO report dated 08.04.2009 is enclosed herewith
and marked as Annexure – “F” for kind perusal of the Hon'ble Court. The
said fact is not disclosed by the Ex-Director either in Statement of Affairs
or statement recorded in this office. The above transaction is explained
with the help of chart:
CHART-2
M/s India Ceroils Ltd. (Now M/s
Finite Infratech) 15 lacs shares of
Rs. 1.5 crore in 1997-98 were
purchased by
M/s JVG Finance Ltd.
(In Liq.) 7.5 lacs
shares of Rs. 75 lacs
M/s JVG Departmental
Stores Ltd (In Liq.)
7.5 lacs shares of
Rs. 75 lacs
The said shares were transferredf to Cogent
group of
Companies in the year 2003-04 (In this
period
Sh. VK Sharma, Ex CMD, JVG Group was
director
of M/sIndia Ceroils Ltd.)
That pursuant to the above findings by the SFIO, the transfer of 15 Lac
Shares by JVGFL & JVGDSL to Cogent group of companies be declared
invalid and shares held by M/s Cogent group be ordered to be handed
over to the Official Liquidator. Apparently the transfer of shares after date
of winding up order is void ab-initio and both the transferor i.e., exmanagement of JVGFL & JVGDSL and transferee i.e. Management
Cogent group of companies are required to recompense the company (in
liquidation) with all the benefits that have been received or accrued over
such shares and recompense the amount of consideration for transfer of
shares i.e., Rs. 1.5 crore by the transferors and transferee respectively.
9. That SFIO vide its report dated 23.06.2009 referred that a flat in Jeevan
Anand Co-op. Group Housing Society, Pitampura, New Delhi was
purchased in the name of Sh. Satinder Dutta, brother-in-law of Sh. V. K.
Sharma, Ex-CMD, JVG Group of Companies in liquidation in the year
1996- 1997 out of the funds of M/s JVG Finance Limited (In liquidation)
vide Company's Account No. 559 with Corporation Bank, Bhikaji Cama
Place, New Delhi . The said property has been subsequently disposed off
during the year 2001, while the winding up order dated 05.06.1998 of the
Hon'ble Delhi High Court was in force and the proceeds of the said sale
have been withdrawn by Sh. Satinder Dutta from his bank account. As per
SFIO report Sh. Satinder Dutta sold the said flats to one Sh. Sanjay
Kumar, S/o Sh. Vishveshwar Nath, R/o Flat No. 37, Jeevan Anand Co-
operative Housing Society Ltd on 26.03.2001 for an amount of Rs. 4 lacs.
SFIO also disclosed in the report that the said amount of Rs. 4 lacs was
received by Sh. Satinder Dutta and deposited in his Bank Account No.
01190062474 with State Bank of Bikaner and Jaipur, Krishna Nagar,
Shahadra, Delhi. SFIO further, established that the said amount was with
drawn by SH. Satinder Dutta from the Bank in two installments viz., Rs.
3,50,000/- on 09.04.2001 & Rs. 50,000/- on 15.04.2001. The copy of
investigation finding along with relevant evidence collected during
investigation by SFIO is enclosed and marked as Annexure – “G” to this
application for kind perusal of the Hon'ble Court. The purported
transaction is explained with the help of chart below:
CHART-3
M/s JVG Finance Ltd. (in Liq.) issued ch. No. 166679
dt. 3.7.96 from A/c No. 559 with Corp. Bank, Delhi for
preparation of pay orders favouring Sh. Ram Kr. Bansal
owner of Flat No. 38 (2nd Floor), Jeevan Co-operative
Group Hsg. Society Ltd. At Plot No. Outer Ring Road
Pitam Pura, Delhi.
The said flat was purchased in the name of
Sh.Satinder
Dutta (Brother-in-law of Sh. V.K. Sharma)
Sh. Satinder Dutta sold the said flat to one Sh. Sanjay
Kumar S/o Sh. Vishneshwar Nath on 26.3.2001 for
Rs.4 lacs and the said sale consideration was also
utilized by Sh. Satinder Dutta.
That the Official Liquidator be permitted to take possession of above said
flat and Sh. Sanjay Kumar be directed to refund/deposit Rs. 4 lacs with the
Official Liquidator.
10. That SFIO vide its letter dated 08.06.2009 referred that Sh. V K Sharma,
Ex-CMD of JVG Group of companies filed an affidavit, before the Hon'ble
High Court of Delhi on 29.11.1999. In the said affidavit, he disclosed about
the land situated at Dehradun (Uttarakhand) measuring about 106 Bighas
18 Biswa. He further disclosed that the said land was purchased in the
name of M/s JVG Securities Limited (in liquidation), vide duly registered
GPA bearing Nos. 2041,2042, 2043, 2045&2046 all dated 24.04.1995
executed by one Mrs. Asha Sharma in favour of M/s JVG Securities
Limited (in liquidation). During the investigation by SFIO it was revealed
that documents bearing registry Nos. 2041, 2042, 2043, 2044, 2045 &
2046 all dated 24.04.1995, were sale deeds of the land of village Quarquili
Bhatta, Distt. Dehradun, in favour of Mrs. Asha Sharma W/o Sh. Subhash
Sharma, R/o D.L. Road, Dehradun in respect of land measuring 13.36
acre (Approx) for total amount of Rs. 3.60 lakh (Approx).
10.1) That the SFIO scrutinized the documents received from ROC,
Delhi, it is noticed that M/s JVG Securities Limited (in liquidation) was
incorporated on 02.02.1996. It is clear that Sh. V K Sharma, Ex-CMD
has submitted false information on affidavit to the Hon'ble High Court in
respect of land at Dehradun, stated to have been purchased vide
different GPAs on 24.04.1995 as the said company, i.e. M/s JVG
Securities Limited (in liquidation) was not in existence then and GPAs
Nos. mentioned by Sh. V K Sharma are not actually the sale deeds
(Registration Nos.) executed by villagers in favour of Mrs. Asha
Sharma.
10.2) That SFIO further in the above said report discloses that Smt.
Asha Sharma, W/o Sh. Subhash Sharma R/o 59/4, Rajpur Road,
Dehradun, on being questioned about the above said transactions
informed SFIO that she has not sold any land to M/s JVG Securities
Limited and she has not dealt with Sh. V. K. Sharma, Ex-CMD of JVG
Group in any manner.
That Sh. V.K. Sharma, Ex-CMD of JVGSL be directed to clarify the
above said position to the Hon'ble Court with regard to property of the
company situated at Dehradun so that necessary directions of the
Hon'ble Court in the matter may be passed.
10.3) That SFIO in the said report also disclosed about the project of
M/s JVG Finance Limited namely JVG Enclave, Jwalapur, Haridwar
which is in illegal occupation of various persons. It is pertinent to
mention here that office of Official Liquidator, Delhi has already taken
steps and officials of Official Liquidator had made several visits at JVG
Enclave, Jwalapur, Haridwar and an Application No. 606/2008 is filed
in this Hon'ble Court vide filing No. 126724 against the illegal
occupants and for restrainment from selling, alienating, transferring or
disposing of the property of the company (in liquidation) and with
various other prayers. The said Application No. 606/2008 is pending in
this Hon'ble Court. The Hon'ble Court vide its order dated 27.11.2010
appointed three members Committee consisting of Mr. B. N. Singh,
Former Chief Regional Planner, National Capital Region Planning
Board, Mr. L. P. Srivastava, Retired Additional Director General
(Border) & Mr. B.P. Singh, Mortgage Valuation Expert to submit a
report on JVG Enclave, Haridwar.
The copy of report dated 08.06.2009 along with all relevant records are
enclosed herewith and marked as Annexure- “H” (colly) for kind perusal
of the Hon'ble Court.
11. That SFIO vide its report dated 02.07.2009 found out that M/s JVG
Finance Limited (In liquidation) issued cheques from its Account No. 559
with Corporation Bank, Bhikaji Cama Place, New Delhi favouring, Krishan
Lal & Sons (HUF). The investigation of SFIO further revealed that Sh.
Krishan Lal Anand S/o Sh. Ram Lal Anand R/o 32-B, Pusa Road, New
Delhi sold his built-up property No. A-302, Block-A measuring 397.40 Sq.
yds in layout plan of Janata Co-operative Housing Society Limited situated
at Meera Bagh, New Delhi-41. The sale deeds were made in the favour of
close relatives of Sh. Vijay Kumar Sharma Ex-CMD of JVG Group of
companies. The area of property & purchase consideration is as under:
TABLE A
S.No.
Area of Property
Total
Sale deed made in favour
Consideration
of
01.
A-302, First Floor (Half Rs. 4,25,000/Portion) Front Side,
Meera Bagh, New Delhi
Smt. Sushila Devi W/o Sh.
Surya Parkash Sharma
(mother of Sh. V K sharma)
02.
A-302 (Entire Ground Rs. 4,80,000/Floor), Meera Bagh,
New Delhi
Smt. Veena Sharma, W/o
Sh. V K sharma
03.
A-302 (Entire Second Rs. 4,50,000/Floor), Meera Bagh,
New Delhi
Master
Devish
Kumar
Sharma
under
Guardianship
of
Smt.
Veena Sharma W/o Sh. V K
sharma
04.
A-302,
(Entire Rs. 4,20,000/Basemant),
Meera
Bagh, New Delhi
Sh. V K Sharma (HUF),
Karta
05.
A-302, First Floor (Half Rs. 4,25,000/Portion-Back
Side)
Meera Bagh, New Delhi
Sh. Surya Prakash Sharma
S/o Sh. Mam Raj Sharma
(Father of Sh. V K Sharma)
Note: Transaction in respect of property mentioned at Sl. No.5 has
already been covered by CBI in its investigation.
11.1) That the SFIO further in its report revealed that Sh. V K Sharma
him self issued cheques from the account of JVGFL in favour of Sh.
Krishan Lal & Sons (HUF). The relevant payment vouchers were also
passed by him as CMD of the company (in liquidation).
11.2) That Sh. Krishan Lal Anand appeared before SFIO and stated on
oath that he sold one property No. A-302, Meera Bagh to the
relatives/associates of JVG Group, namely:
1. Sh. Surya Prakash Sharma, S/o Sh. Mam Raj Sharma
2. Sh. Vijay Kumar Sharma S/o Sh. S P sharma
3. Smt. Veena Sharma, W/o Sh. V K Sharma
4. Master Devish Kumar Sharma through Smt. Veena Sharma
(Natural Guardian).
5. Smt. Sushila Devi W/o Sh. Surya Prakash Sharma
11.3) That Sh. Krishan Lal Anand further stated that this property was
sold at a total amount of Rs. 22 Lacs. This property was in ownership
of M/s Krishan Lal & Sons (HUF). He was Karta of the said HUF. He
further confirmed that he had received the entire sale consideration for
the above property from M/s JVG Finance Limited (In Liquidation). Sh.
V K Sharma, Ex-CMD, JVG Group of companies has also not
disclosed these transactions before the Official Liquidator and Hon'ble
Delhi High Court. However, in the Balance Sheet of JVG Finance
Limited (in liquidation) as on 31.03.1997, the amount of purchase
consideration of Rs. 22.00 Lacs paid to Sh. Krishan Lal Anand has
been wrongly and falsely shown as “Advance for land and Building” in
Schedule 11 to the Balance Sheet.
11.4) That as per report of SFIO further investigation in the above
matter revealed that above said properties was subsequently sold by
these relatives of Sh. V K Sharma and by himself. They have also kept
with them the whole consideration received on account of subsequent
sale. The details of sale of these properties are as under:
TABLE B
S. No.
01.
Area of Property
Total sale
Consideration
A-302, First Floor, Rs. 4.35 Lacs
Front Side (Half
Portion),
Meera
Bagh, New Delhi,
sold
by
Smt,.
Sushila Devi on
16.06.1998 (After
date
of
Sale Deed made in favour of
Smt. Raksha Devi W/o Sh.
Prabhu Singh, R/o 1192/50
DDA Flats Kalkaji, New Delhi
Liquidation)
02.
A-302
(Entire Rs. 4.60 Lacs
Second
Floor),
Meera Bagh, New
Delhi, sold by Smt.
Veena
Sharma
W/o Vijay Kumar
Sharma,
on
02.07.1998 (After
date
of
Liquidation)
Smt. Rakhi Chawla & Sandeep
Chawla as GPA Holder &
Agreement to sell
03.
A-302
(Entire Rs. 4.90 Lacs
Ground
Floor),
Meera Bagh, New
Delhi, sold by Smt.
Veena
Sharma
W/o
Sh.
Vijay
Kumar Sharma on
03.07.1998 (After
the
date
of
Liquidation)
Smt. Veena Dogra W/o Sh.
Subash Dogra & Sh. Subhash
Dogra S/o Sh. B. R. Dogra R/o
252, Nilmri Colony, Delhi-52
04.
A-302
(Entire Details
not Sh. Vijay Dogra (The occupant
Basement), Meera available as per of this property not available)
Bagh, New Delhi, SFIO report.
sold by Sh. V K
Sharma, Ex-CMD
of JVG Group of
companies.
The above said transactions is explained with the help of following chart:
CHART-4
M/s JVG Finance Ltd (In Liq.) purchased property
A-302, Block-A, Janta Co-operative Hsg. Society Ltd.
Meera Bagh, New Delhi from its Bank A/c No. 559,
Corporation Bank from Sh. Krishan Lal Anand
The said property was purchased in the name of
Sh. V.K. Sharma & his relatives, viz., Surya
Praksh Sharma, Veena Sharma, Master Devish
Sharma, Smt. Sushila Devi
The said properties was later on sold by the above
said relatives of Sh. V.K. Sharma & by himself after
the date of liquidation i.e. 05.06.1998 and as such void &
binding on Official Liquidator.
That pursuant to foregoing facts found out by SFIO the transaction
entered into after passing of winding up order dated 05.06.1998
be
declared null and void and the Official Liquidator be permitted to take over
possession of the property situated at Meera Bagh, New Delhi.
12. That the SFIO in the same report dated 02.07.2009 revealed that M/s JVG
Finance Limited (in liquidation) had issued cheques from its Bank Account
No. 559 with Corporation Bank, Bhikaji Cama Place, New Delhi for issuing
Drafts/Pay orders to the following persons and a Company, namely M/s
Yusuf Engineering Pvt. Ltd as detailed below:
TABLE C
S. No. CHEQUE
No.
DATE
AMOUNT (Rs.)
IN FAVOUR OF
01.
254321
27.12.1995
3,00,000
Yusuf Engg, Pvt. Ltd.
02.
254381
05.01.1996
10,00,000
Sh. Yusuf Hafeez
03.
260643
08.02.1996
10,00,000
Sh. Yusuf Engg. Pvt. Ltd.
04.
260744
19.02.1996
2,50,000
-Do-
05.
114501
13.11.1996
6,18,590
Sh. Abdul Hafeez
06.
114504
13.11.1996
1,11,350
Mrs. Noorsabha
12.1) That the investigation of SFIO further revealed that Smt. Veena
Sharma, W/o Sh. V K Sharma, Ex-CMD, JVG Group of companies
executed an Agreement to Sell on behalf of M/s JVG Publication, B-22
Ansal Chamber-1, Bhikaji Cama Place, New Delhi with M/s Yusuf
Engineering Pvt. Ltd. through its director, Sh. Abdul Hafeez to
purchase all shares of all directors/shareholders of the said company
owning building (constructed on a plot of land measuring 392.5 Sq.
Yds) bearing No. A-24, Okhla Industrial Area, Phase-I, New Delhi-20.
This agreement was executed by both the parties on 05.01.1996. Total
sale consideration was settled at Rs. 34 Lacs and an amount of Rs. 10
Lacs was paid as Advance from the account of M/s JVG Finance
Limited (In Liquidation).
12.2) That Sh. Abdul Hafeez and other directors of M/s Yusuf
Engineering Pvt. Ltd appeared before the inspectors on 21.05.2008
and stated on oath that they had sold their company, M/s Yusuf
Engineering Pvt. Ltd. to JVG Group of companies through their
Director/Relatives/associates. They further disclosed that they had
given an advertisement in daily news papers for the sale of aforesaid
property in the year 1996. They sold the property for an amount of Rs.
34 Lacs. The details of payments are given in the said report.
12.3) That the payments were received from M/s JVG Finance Limited
(In Liquidation) and the shares were transferred along with the property
as mentioned above. The share were transferred in the name of Sh. S.
P. Sharma, Smt. Veena Sharma, Sh. Vinay Kumar Sharma and these
persons became directors in this company.
12.4) That the investigation of SFIO further reveals that the agreement
between M/s Yusuf Engineering Co. Pvt. Ltd and M/s JVG Publication
was only for name sake and actually the relatives of Sh. V K Sharma,
Ex-CMD of JVG Finance Limited (In Liquidation) purchased the said
property, which is in the name of M/s Yusuf Engg. Co. Pvt. Ltd., with
the funds of JVG Finance Limited (in liquidation).
12.5) That the report of SFIO reveals that after transfer of shares the
persons who were the directors of M/s Yusuf Engg. Co. Pvt. Ltd. were
close associates/ex-employees of Sh. V K Sharma, Ex-CMD of JVG
Group of Companies and one Sh. Ravinder Kumar Mishra. Director of
M/s Yusuf Engg. Pvt. Ltd stated on oath before the SFIO on
01.05.2008 is working as care taker in guest house of Sh. V K Sharma
situated at 74/5, Chhattarpur, New Delhi and he has been signing
various papers, including Bank Account opening forms, blank cheque
books and other company related documents. He has no knowledge
about the company and its business.
12.6) Smt. Veena Sharma w/o Sh. Vijay Kumar Sharma appeared
before the Inspector on 18.06.2008. She stated on oath that she has
no knowledge about the transactions. She signed papers, cheque
books and other documents as per advice of her husband, Sh. V K
Sharma. The above said transactions have not been disclosed by the
Ex-Management of the aforesaid companies of JVG Group either to
Official Liquidator or to this Hon'ble Court.
12.7) That on 05.06.1998 the banker of JVG Group company, M/s JVG
Finance Limited was put under liquidation on a petition moved by the
RBI. A number of cases of misappropriation, siphoning of funds have
been registered against Sh. V K Sharma & relatives/associates. To
hide this property/transaction and to mislead the investigation agencies
and the Official Liquidator attached with Delhi High Court, Sh. V K
Sharma deliberately kept the management of Yusuf Engineering Pvt.
Ltd. in the hands of his close relatives. Subsequently, he transferred
management/control of this company from his relatives to his
close/faithful associates/employees, such as D.K. Agarwal, Ravinder
Kumar Mishra etc. During the year 2004-2005, he again transferred the
management/control of Yusuf Engg. Pvt. Ltd. in his own name and his
new wife's name i.e. Smt. Anita Sharma as is evident from the annual
return of M/s Yusuf Engg. Pvt. Ltd. made upto 30.09.2005 filed with
ROC, Delhi. Therefore, he is illegally occupying/enjoying the benefits
of property No. A-24, Okhla Industrial Area Phase-I, New Delhi, which
was solely acquired from out of funds of JVG Finance Limited (in
liquidation).
12.8) That in view of the above it is clear that Sh. V K Sharma, ExCMD, JVG Finance Limited (in liquidation) has purchased the company
namely, M/s Yusuf Engineering Pvt. Ltd and its property situated at A24, Okhla Industrial Area, Phase I, New Delhi, using the funds of JVG
Finance Limited.
The alleged transaction between JVG Group and M/s Yusuf
Engineering Co. Pvt. Ltd. is explained with the help of chart:
CHART-5
M/s JVG Finance Ltd(In Liq.) transferred money from its bank a/c no.
559 with Bhikaji Cama Place, New Delhi for purchasing shares
of M/s Yusuf Engineering Co. Pvt. Ltd.
The agreement was executed between M/s JVG Publication &
M/s Yusuf Engg. Co. Pvt. Ltd. to purchase shares & one
building situated at A-24, Okhla Ind. Area, Phase-I, N.D. In the
name of close relatives of Sh. V.K. Sharma in 1996
Later on the management & control of the said co. was transfererd to
close associates/employees of Sh. V.K. Sharma, viz., Sh. D.K.
Agarwal CA & Sh. Ravinder Mishra (Care Taker at V K Sharma
Guest House)
Further Sh. V.K. Sharma in the year 2004-05once again transferred the
management/control of M/s Yusuf Engg. (P) Ltd. in his own
name & his new wife's name Smt. Anita Sharma & illegally
occupying/enjoying the benefits of property at A-24, Okhla Ind.
Area, Phase-I, N.D.
From the facts digged out by the SFIO it is crystally clear that the
money for purchase of ownership of M/s Yusuf Engineering Pvt. Ltd.
and acquiring all its shares and properties were siphoned of from the
account JVGFL through M/s JVG Publication Limited. Keeping in view
all the money involved in purchase of above said company belonging
to JVGFL the Hon'ble Court may kindly declare that the aforesaid
property belongs to JVGFL and accordingly the Official Liquidator be
permitted to take over the possession of property situated at A-24,
Okhla Induatrial Area, Phase-I, New Delhi.
The copy of SFIO report dated 02.07.2009 along with all other relevant
documents are enclosed and marked as Annexure-I (colly) for kind
perusal of the Hon'ble Court.
13. That SFIO vide its report dated 06.08.2009 informed that Sh. Vijay Kumar
Sharma had purchased a flat in Kartar Bhavan Co-operative Housing
Society Limited at Colaba, Mumbai in the year 1995 using funds of JVG
group of companies. During investigation by SFIO it is revealed that on
25.04.1995, Smt. Veena Sharma w/o Sh. V K Sharma had purchased an
office space bearing No. 4, situated at ground floor of the building, known
as Kartar Bhavan, Minoo Desai Road, behind Radio Club, Colaba,
Bombay from Ms. Shaila M. Dighe for an amount of Rs. 50 lac. As per the
agreement an amount of Rs. 45 lac was paid by transferee to transferor as
earnest money upon signing the memorandum of understanding dated
16.01.1995.
13.1) That the source of funding of Rs. 45 lakhs could not be
established during investigation by SFIO. However, the balance
amount of Rs. 5 Lac was paid vide Cheque No. 852225 dated
26.05.1995 drawn on Dena Bank, Colaba Branch, Mumbai. During
investigation by SFIO it was revealed that the said Cheque No. 852225
dated 26.05.1995 in the name of Ms. S M Dighe was issued from the
account of M/s JVG Leasing Limited (In Liquidation).
13.2) That Sh. V K Sharma, EX-CMD, JVG Group of companies had
filed an affidavit dated 07.09.1999 in Hon'ble Delhi High Court wherein
he, inter alia, deposed that Mrs. Veena Sharma, his wife is owning a
property, i.e. Flat No. 4, Kartar Bhawan, Minoo Desai Road, Coloba,
Mumbai worth Rs. 55,00,000/-.
13.3) That Report of SFIO further disclosed that the documents
received from the society revealed that Smt. Veena Sharma had
mortgaged the property to one Mr. Antonio Filipe George vide Deed of
Mortgage dated 20.12.1997 for an amount of Rs. 15 Lac. Further, vide
agreement for sale dated 12.08.1998 Smt. Veena Sharma had sold the
said Flat to Mr. Antonio Felipe George for an amount of Rs. 22 Lacs
and copy of the share certificate issued by the society it is clear that
the said share certificates was transferred in the name of Mr. Antonio
Filipo on 15.07.1999.
13.4) That as per SFIO report the above said property has been falsely
shown as his wife's property in the affidavit dated 07.09.1999 filed by
Sh. V K Sharma, while the fact was that the said property had been
already been sold off by his wife, Mrs. Veena Sharma on 12.08.1998 to
Mr. Antonio Filipe George vide Agreement to sell. Accordingly, Sh. V K
Sharma is also guilty of giving a false affidavit and contempt of Hon'ble
High Court winding up order dated 05.06.1998.
13.5) That from the above said report of SFIO it is revealed that the
property situated at Flat No. 4, Kartar Bhavan, Co-operative Housing
Society Limited, Minoo Desai Road, Behind Radio Club, Colaba,
Mumbai was acquired by Mrs. Veena Sharma with the funds of JVG
Leasing Limited (In Liquidation) and the same was sold after the
company went into liquidation and the sale proceeds were siphoned off
by Sh. V K Sharma and his associates. Therefore, the declaration
made in the affidavit filed by Sh. V K sharma, EX-CMD, JVG Group of
companies before the Hon'ble High Court, Delhi is false.
The above transaction could be best explained with the help of
following chart:
CHART-6
Sh. V K Sharma, purchased an office space at Flat
No. 4, GroundFloor, Kartar Bhawan, Minoo Desai
Road,Behind RadioClub, Colaba, Mumbai
using funds of M/s JVG Leasing Ltd (In Liq.) in
the name of Smt. VeenaSharma in the year 1995.
Later on the above said flat was sold by Smt. Veena
Sharma, W/o Sh. V.K. Sharma to one Mr. Antonio
Felipe George vide Agreement for Sale dated 12.08.98
From the findings of SFIO it is evident that above said property was
purchased from the funds of JVGLL in the name of Smt. Veena
Sharma and later on the same was sold by Smt. Veena Sharma for
consideration of Rs. 22 Lacs. Therefore the above
said
property
solely belongs to the JVGLL and transaction entered into for holding of
above said property by Smt. Veena Sharma and thereafter itself to
some other party be declared as invalid and the Official Liquidator my
be allowed to take the possession of the same. Further Smt. Veena
Sharma who has pocketed sale consideration amounting to Rs. 22
Lacs be ordered to deposit the money along with interest.
The copy of SFIO report dated 06.08.2009 along with all other relevant
documents are enclosed and marked as Annexure-J (colly).
14. That SFIO vide its report dated 07.08.2009 informed that during the year
1997-1998, M/s JVG Securities Limited (In Liquidation) was mobilizing
public deposits under its various schemes. The SFIO further in its report
divulged that the company (in liquidation) had received money from the
public and issued the certificates/receipts where it is clearly mentioned
that these deposits were in the form of recurring deposit schemes/margin
money deposit schemes. The SFIO found out that the copy of
advertisement required to be filed with the ROC office under the deposit
rules was also not filed.
14.1) SFIO further found out that in the balance sheet for the year
1996-1997, it has been stated that the company has not taken any
“public deposits”. However, as per SFIO report it is clear that in the
year 1997-1998 M/s JVG Securities Limited (in liquidation) collected
public deposits in the form of fixed deposits. The SFIO in its report
found out that this being a fixed deposit, the company was bound to
comply with the provisions of section 58A of the Companies Act, 1956
and the Companies (Acceptance of Deposit) Rules, 1975, but the
company (in liquidation) failed to comply with the said provisions. The
company (in liquidation) didn't issue any advertisement which is
mandatory to make public aware of the financial status of the
company. The company (in liquidation) also not filed any return under
Rule 4A of the said Deposit Rules. The SFIO in its report stated that
deposits were collected by the company (in liquidation)/the main
promoter of the group from general public through various means but
they were never returned to the investors as per the promise/terms and
conditions set by the company (in liquidation). The bank accounts were
not having any funds. The SFIO in its report further recommended that
the company (in liquidation) and its officers have violated the
provisions of the section 58A of the Companies Act, 1956 and are
liable for penal action under the provisions of the section 58A (6) the
Companies Act, 1956.
14.2) The SFIO also recorded the statements of Sh. Vinay Kumar
Sharma (Brother-in-Law of Sh. V.K. Sharma) and Smt. Veena Sharma
(W/o Sh. V.K. Sharma), ex-directors of M/s JVG Securities Limited (in
liquidation). Both of them before the SFIO inter alia, stated on oath that
they used to sign various blank papers including bank cheques etc,
relating to M/s JVG Securities Limited (in liquidation) at the instructions
of Sh. V.K. Sharma. SFIO also taken up the matter with Sh. V.K.
Sharma and Sh. Surya Thapar the available ex-directors of M/s JVG
Securities Limited (in liquidation). As per SFIO report Sh. V.K. Sharma
informed SFIO that “it may be possible that after the issue of such
guidelines by Head Office, there may be instances of collection of
money from General Public by branch office official with malafide
intentions.”
14.3) That SFIO report also reveals that M/s JVG Securities Limited (in
liquidation) was carrying on the business of booking of plots and for
this purpose the company (in liquidation) collected money from public
under two schemes, viz., Green Valley Self Financing Housing
Scheme and Apna Ghar Self Financing Housing Scheme. The
report further divulged that M/s JVG Securities Limited (in liquidation)
written a letter dated 09.10.1997 addressed to RBI, that the company
(in liquidation) had suspended the acceptance of booking amount for
sale of plots. However, SFIO also states that the Balance Sheet of
company (in liquidation) as at 31.03.1997, does not indicate that it had
collected any deposit amount from public. The SFIO report established
that sale of plots and taking deposits under Green Valley Self
Financing Scheme and Apna Ghar Self Financing Scheme in the year
1997-1998 was in violation of its main objects. The report clearly
stipulates that the company (in liquidation) contravened the provisions
of the Companies Act, 1956.
The
SFIO
in
the
said
report
established
the
following
ex-
directors/persons of M/s JVG Securities Limited (in liquidation) being
officers in default, are liable for prosecution under section 58A (6) and
Section 629A of the Companies Act, 1956 :
(a) Sh. Vijay Kumar Sharma (treated as officer in default u/s 5 (e) of
the Companies Act, 1956
(b) Sh. Surya Thapar, Ex-Director
(c) Sh. Dinesh Prashar, Ex-Director
(d) Sh. Sukhbir Singh, Ex-Director
(e) Sh. Bhanwar Singh, Ex-Director
(f) Sh. Sanjay Sharma, Ex-Director
The copy of SFIO report dated 07.08.2009 is enclosed herewith and
marked as Annexure – “K” (colly) for kind perusal of the Hon'ble
Court.
15. That the SFIO vide its report dated 28.08.2009 revealed that Sh. V.K.
Sharma, Ex-CMD of the company (in liquidation) issued Cheque No.
718540 dated 18.04.1995 amounting to Rs. 1,73,000/- to Mehrasons
Jewellers, New Delhi for purchase of diamond ornaments for his wife Smt.
Veena Sharma from his SB Account No. 5465 with Corporation Bank,
Bhikaji Cama Place, New Delhi.
15.1) That investigation in the above matter by SFIO further revealed
that Sh. V.K. Sharma received an amount of Rs. 1.73 Lacs from the
current account of M/s JVG Leasing Limited (in liquidation) maintained
with Corporation Bank, Bhikaji Cama Place, New Delhi vide cheque
No. 272451 dated 18.04.1995.
15.2) That SFIO in its report divulged that Sh. V.K. Sharma paid this
amount for purchase of Diamond ornaments as informed by M/s
Mehrasons Jewellers, New Delhi.
15.3) That Sh. V.K. Sharma, Ex-CMD of JVG Group of Companies (in
liquidation) appeared before the SFIO on 04.11.2008 and 05.11.2008.
According to SFIO report Sh. V.K. Sharma, inter alia, stated on oath
that during the year 1995-96, M/s JVG Leasing Limited (in liquidation)
had distributed ornaments/articles of gold, silver & diamond etc., to
promote the business of the company. The SFIO in the said report
further stated that Smt. Veena Sharma had purchased and taken
delivery of one Diamond set as per cash memo dated 15.04.1995 of
M/s Mehrasons Jewellers, New Delhi. As per SFIO report Smt. Veena
Sharma, W/o Sh. V.K. Sharma appeared before SFIO on 18.06.2008
and she inter alia, stated on oath before SFIO Inspector that she has
no knowledge about this transaction. She further admitted before SFIO
Inspector that she used to sign papers, cheque books and other
documents as per advice of her husband Sh. V.K. Sharma, Ex-CMD
JVG Group of companies (in liquidation).
15.4) That SFIO in its report clearly found out that the funds from bank
account of M/s JVG Leasing Limited (in liquidation) had firstly
transferred to the saving bank accounts of Sh. V.K. Sharma and
thereafter the same were used in purchase of jewellery. Hence, SFIO
report proved that Sh. Vijay Kumar Sharma has siphoned off funds of
M/s JVG Leasing Limited by way of purchase of jewellery.
That SFIO on its finding clearly establishes that :
a) Sh. V.K. Sharma, being Director of JVG Leasing Limited (in
liquidation) is liable for the offences of criminal breach of trust and
cheating under sections 409 read with section 405, 418 and 420 of
IPC.
b) Smt. Veena Sharma is liable for offence of cheating along with
Sh. V.K. Sharma under section 417 read with 415 and 120B of IPC.
As per findings of SFIO Sh. V.K. Sharma be also directed to deposit
the diamond ornaments which was purchased from the current account
of M/s JVG Leasing Limited (in liquidation) maintained with Corporation
Bank, Bhikaji Cama Place, New Delhi.
The copy of report dated 28.08.2009 is enclosed and marked as
Annexure - “L” (colly) for kind perusal of the Hon'ble Court.
16. That the SFIO vide its report dated 28.08.2009 revealed that M/s JVG
Leasing Limited (in liquidation) contravened the provisions of Section 58A
of the Companies Act, 1956 and (Acceptance of Deposits) Rules, 1975. In
the said report SFIO clearly established that as per provisions of Section
58A(6) of the Companies Act, 1956 the company and every officer of the
company who is in default are liable for prosecution for inviting or
accepting deposits in violation of the applicable provisions. Hence, as per
SFIO report the following directors/persons of M/s JVG Leasing Limited (in
liquidation) being officers in default, are liable for prosecution under
Section 58A (6) and Section 629A of the Companies Act, 1956 :
a) Sh. Vijay Kumar Sharma, Ex-Director
b) Sh.Pawan Kumar, Ex-Director
c) Sh. Rajinder Kumar Goyal, Ex-Director
d) Sh. Ram Pavitra Singh, Ex-Director
e) Sh. B.P. Singh, Ex-Director
Sh. Vijay Kumar Sharma (treated as officer in default u/s 5 (e) of the
Companies Act, 1956.
17. That the SFIO vide its report dated 28.08.2009 already enclosed with this
application revealed that M/s JVG Leasing Limited (in liquidation) also
violated the provisions of Section 211 read with Sch. VI of the Companies
Act, 1956 for the Balance Sheet as at 31.03.1995. The report further
disclosed that on examination of M/s JVG Leasing Limited (In Liquidation)
ledger for the year 1994-1995 (31.12.1994 to 31.03.1995) indicates that
an amount of Rs. 59.92 Lakh was due from Sh. Vijay Kumar Sharma as
on 31.03.1995. The report of SFIO also divulged that as on 31.03.1995
amounts of Rs. 12.07 lakh, Rs. 4.48 lakh and Rs. 3.37 lakh were due from
the firms i.e., M/s JVG Finance Company, M/s JVG Investments and
Marwari Investment respectively. The report clearly states that these firms
were owned by Sh. Vijay Kumar Sharma or he was a partner in these
firms but details of amount due by the firms owned by Sh. Vijay Kumar
Sharma or in which he was a partner had not been shown separately in
the Loans & Advances. The said SFIO report concludes that the Balance
Sheet of M/s JVG Leasing Limited (In Liquidation) as on 31.03.1995 was
signed on 30.06.1995. Sh. V.K. Sharma was the Chairman of M/s JVG
Leasing Limited (In Liquidation) during the year 1994-1995. As per SFIO
report the following directors during the relevant time are liable to be
prosecuted:i.
Sh. V.K. Sharma, Ex-Director
ii. Col. T.S. Bhan, Ex-Director
iii. Sh. Bharat Bhushan Sharma alias Vinay Kumar Sharma, ExDirector
iv. Sh. Krishna Murari Sharma, Ex-Director
That Sh. V.K. Sharma, Ex-CMD JVG Group of Companies (in liquidation)
being owner/partner of firms viz., M/s JVG Finance Company, M/s JVG
Investment & M/s Marwari Investment be directed to furnish the complete
details of above firms and to deposit the amount of Rs. 59.92 Lakh as on
31.03.1995.
18. That SFIO in the same report dated 28.08.2009 disclosed that Balance
Sheet of M/s JVG Leasing Limited (In Liquidation) for the years 1996-1997
has not been prepared in compliance with disclosure requirements of Part
I of Schedule VI of the Companies Act, 1956. The SFIO report held that
the following directors of M/s JVG Leasing Limited (In Liquidation) were
liable to be prosecuted for violation of Section 211 read with Schedule VI
of the Companies Act, 1956:
i.
Sh. V.K. Sharma, Ex-Director
ii. Col. (Retd) T.S. Bhan, Ex-Director
iii. Sh. Biresh Prasad Singh, Ex-Director
19. That SFIO in report dated 28.08.2009 stated that Sh. Rajender Kumar
Goyal S/o Sh. Bansi Lal Goyal R/o E-8/5, Krishna Nagar, Delhi-110051
was appointed director in M/s JVG Leasing Limited (in liquidation) w.e.f.
01.12.1997 and he continued to be director till the company went into
liquidation. To examine the affairs of the aforesaid company Sh. Rajender
Goyal was directed by the inspector vide various summons to appear
before the inspector personally but Sh. Rajender Kumar Goyal didn't turn
up before the SFIO inspector. The SFIO in their report recommended that
Sh. Rajender Kumar Goyal is liable to be prosecuted under Sub Section
(3) of Section 240 of the Companies Act, 1956.
20. That SFIO vide its report dated 06.11.2009 divulged siphoning of M/s JVG
Departmental Stores Limited (In Liquidation) funds by Sh. V.K. Sharma,
Ex-CMD, JVG Group of Companies (In Liquidation) and Smt. Veena
Sharma (W/o Sh. V.K. Sharma) by receiving rent on premises purchased
through JVG Group of companies funds.
20.1) That SFIO report mentioned that Sh. V.K. Sharma, Ex-CMD,
JVG Group of Companies (In Liquidation) had purchased half share in
basement and ground floor of property at Plot No. 3, Ashoka Park,
Rohtak Road, New Delhi at a cost of Rs. 3.90 lakh from company (in
liquidation) funds. The SFIO further in its report stated that Sh. Ashok
Kumar Gupta received Rs. 3.90 lakh from Sh. V.K. Sharma, Ex-CMD,
JVG Group of Companies (In Liquidation) through two cheques i.e.
cheque no. 326150 and 718532 of Rs. 1.95 lakh each dated
19.12.1994 and 07.01.1995 respectively drawn on Corporation Bank,
Bhikaji Cama Place, New Delhi. The SFIO during its investigation
found that cheque no. 326150 was issued by M/s JVG Leasing Limited
(In Liquidation) having Bank account No. CA-1098 and no. SB-5465.
The SFIO report reveals that bank account no. SB-5465 indicates that
payment of Rs. 1.95 lakh made by Sh. V.K. Sharma to Sh. Ashok
Kumar Gupta through Cheque No. 718532, was out of the money
received in his bank account from M/s JVG Leasing Limited (In
Liquidation) (bank account No. 1098) as he had no money in his
account prior to issue of the said cheque. The SFIO in the said report
clearly established that Sh. V.K. Sharma acquired properties i.e. half
share in basement and ground floor built at Plot No. 3, Ashoka Park,
Rohtak Road, New Delhi at a cost of Rs. 3.90 lakh entirely with the
funds of M/s JVG Leasing Limited (In Liquidation) and not from his own
funds.
20.2) That SFIO report also states that Sh. V.K. Sharma, submitted
that properties built at Plot No. 4, Ashoka Park, Rohtak Road, New
Delhi acquired by Smt. Veena Sharma through Power of Attorney from
Sh. S. Rupinder Singh and Sh. S. Damanver Singh through seperate
GPA's both dated 26.04.1996, executed by them in her favour. The
SFIO report further states that while examining the bank statement of
M/s JVG Finance Limited (In Liquidation) bank account no. CA-559
with Corporation Bank, Bhikaji Cama Place, New Delhi, it is seen that
the Bank issued two Pay Orders favouring Sh. Damanveer Singh and
Sh. Rupinder Singh on 24.04.1995 against Cheque Nos. 84376 and
84377 respectively. The Corporation Bank has also confirmed that Pay
Orders number 62250 for Rs. 4,10,100/- and Pay Order number 62251
for Rs. 3,90,000/- were issued to Sh. Damanveer Singh and Rupinder
Singh respectively and both these Pay Orders were paid on
08.05.1996. The SFIO report clearly established that payment for both
the Pay Orders was made by M/s JVG Finance Limited (In Liquidation)
.Therefore, as per SFIO report M/s JVG Finance Limited had made
payment of Rs. 8,00,000/- (Rs. 4,10,000+Rs. 3,90,000/-) for properties
at Ashoka Park built at Plot No. 4 acquired by Smt. Veena Sharma
from Sh. Damanveer Singh and Sh. Rupinder Singh.
20.3) That SFIO in the said report found out that entries made in the
accounts of Sh. V.K. Sharma, Rent & Tax Deducted at Source (TDS)
payable, as appearing in the ledger of M/s JVG Departmental Stores
Limited (In Liquidation), Mera Bazar Division, Head Office, New Delhi
for the year 1997-1998, indicate that Sh. V.K. Sharma and his wife
Smt. Veena Sharma were receiving rent from M/s JVG Departmental
Stores Limited (In Liquidation) in respect of properties built at Rohtak
Road. SFIO stated that they were receiving rents in respect of portion
of properties built at Rohtak Road acquired by them through funds of
M/s JVG Leasing Limited (In Liquidation) and JVG Finance Limited (In
Liquidation). The SFIO report reveals that Sh. V.K. Sharma's account
in M/s JVG Departmental Stores Limited (In Liquidation), Mera Bazar
Division, Head Office, New Delhi ledger for the year 1997-98 indicate
that M/s JVG Departmental Stores Limited (In Liquidation) had issued
two cheques viz., Cheque No. 170272 and No. 170305 of Rs. 25,500/each to Sh. V.K. Sharma for rent in respect of his Rohtak Road
property for the month of February, 1997 and March, 1997
respectively. The SFIO further in its report clarifies that the
examination of bank statement of M/s JVG Departmental Stores
Limited (In Liquidation) bank account no. CA-1358 with Corporation
Bank, Bhikaji Cama Place, New Delhi revealed that the above
mentioned two cheques were debited and the payment had gone to
Sh. Sharma's Saving Bank Account No. SB-5465 with the same bank.
The said investigation of SFIO clearly points out that Sh. V.K. Sharma
had encashed Cheques No. 17022 and No. 170305 of Rs. 25,500
each, issued by M/s JVG Departmental Stores Limited (In Liquidation)
to Sh. V. K. Sharma, against rent of portions of properties at Rohtak
Road for the month of February, 1997 and March 1997. The report
also mentions that extracts of M/s JVG Departmental Stores Limited
(In Liquidation) bank account no. CA-1358 indicate that Sh. Sharma
received 11 (eleven) cheques of Rs. 25,500/- each, which were
obviously towards monthly rent he used to receive on account of
properties at Rohtak Road given on rent to M/s JVG Departmental
Stores Limited (In Liquidation).
20.4) That the SFIO report also points out that the entries against C.B.
Folio-J-7 and S made on 14.04.1997 and 21.04.1997 respectively in
Rent account in the ledger of M/s JVG Departmental Stores Limited (In
Liquidation) for the year 1997-98 indicate booking of monthly rent
expenses of Rs. 45,000/- in respect of March, 1997 and February,1997
of Rohtak Road properties. The entries against the same C.B. Folio
made on above mentioned dates in the accounts of Smt. Veena
Sharma and TDS Payable indicate monthly rent of Rs. 38250/- was
payable to Smt. Veena Sharma in respect of March, 1997 and
February,1997 for Rohtak Road properties after deduction of tax of Rs.
6,750/-. The SFIO report clearly mentions that the bank account details
show that Rs. 38250/- and Rs. 1,65,750/- were transferred through
various cheques in Smt. Veena Sharma's Saving Bank Account No.
7044 with Corporation Bank, Bhikaji Cama Place, New Delhi. Thus, the
SFIO report clearly established that Sh. V.K. Sharma and Smt. Veena
Sharma were receiving rent on portions of properties at Ashoka Park,
Rohtak Road, New Delhi acquired by them with the funds of M/s JVG
Leasing Limited (In Liquidation) and M/s JVG Finance Limited (In
Liquidation). The purported transaction is explained with the help of
following chart:
CHART-7
That Sh. V.K. Sharma acquired property
at Ashoka
Park, New Rohtak Road, New Delhi from
the funds of
M/s JVG Finance Ltd (In Liq.) & M/s
JVG Leasing
Ltd. (In Liq.)
Sh. V.K. Sharma also
received rent from the
property
Smt. Veena Sharma, W/o
Sh. V.K. Sharma also recd.
Rent from the above
property
That the above property situated at Ashoka Park was handed over to Land
Acquisition Collector 03.02.2009 pursuant to Hon'ble Court order dated
23.01.2009 as notification No. F-2(12)/07/LAC(W)/2009/3902 was issued
under Section 9 of Land Acquisition Act 1894 the land measuring 736.30
Sq. Mtrs. was acquired for the purpose of construction of entry/exit, traffic
integration, D.G. Water Tank and Pump Room of Inder Lok- Mundra
Corridor of Delhi MRTS Project, Phase-II, at Ashoka Park, Rohtak Road,
New Delhi, along with the built up structure thereon. That Compensation
claim for the aforesaid property was filed before the Land Acquisition
Collector, Delhi and 80 % of the estimated compensation is under process
for release to the Official Liquidator as reported by the Land Acquisition
Collector.
However, as regards rent received on the abovesaid property, Sh. V.K.
Sharma, EX-CMD & Smt. Veena Sharma be directed to deposit the rent
received on the properties of the company (in liquidation) as mentioned
above.
21. That SFIO in its report dated 06.11.2009 mentioned that M/s JVG
Departmental Stores Limited (In Liquidation) came out with a Public Issue
in June 1996 through its prospectus dated 27.05.1996. That SFIO states
that during investigation, a list of promoters and their shareholdings in M/s
JVG Departmental Stores Limited (In Liquidation) up to 31.03.1996 was
obtained from Income Tax Department. SFIO report further reveals that
M/s JVG Departmental Stores Limited (In Liquidation) in its prospectus
dated 27.05.1996 of Public Issue of June, 1996 had stated in Note No. 2
below “Capital Structure of the Company” that “Promoter Group is holding
45,87,700 Equity Shares constituting 82.11% of the existing capital base
(55,87,500 equity shares) and the balance 9,99,800 equity shares are
held by unrelated individuals”. However, the SFIO report divulged that list
of promoters and their shareholdings upto 31.03.1996 indicate that
55,87,500 shares were held by the promoters i.e. 100% equity shares
were held by the Promoter Group and no investment was made by
unrelated individuals. As per SFIO report it was also stated in the
prospectus that Sh. V.K. Sharma was holding 38,34,700 equity shares of
M/s JVG Departmental Stores Limited (In Liquidation) whereas he was
holding 35,55,300 equity shares of M/s JVG Departmental Stores Limited
(In Liquidation) as on the date of signing of Prospectus. The SFIO in its
report dated 06.11.2009 recommends that the following directors and
signatories of the prospectus are liable for prosecution under sections 63
and 68 read with section 628 of the Companies Act, 1956 for misstatement of facts in the prospectus:
i.
Sh. V.K. Sharma, Ex-Director
ii. Col. Tripat Singh Bhan, Ex-Director
iii. Maj. Gen. N.S. Nair, Director
iv. Ms. Anita Kwatra, Ex-Director
22. That the SFIO report dated 06.11.2009 disclosed that Sh. V.K. Sharma
had purchased 2,99,500 equity shares of M/s JVG Departmental Stores
Limited (In Liquidation) (Distinctive No. 1247001 to 1546500) in the year
1994-95 but not reflected in his investment for the year ending 31.03.1995
in the Income Tax record. The SFIO report established that 2,99,500
equity shares were sold by Sh. V.K. Sharma on or before 31.03.1995 but
he made declaration under section 187C(1) on 28.4.1995 i.e. after
31.03.1995 about these 2,99,500 equity shares, which formed part of
36,76,100 equity shares. The SFIO report clearly established that Sh. V.K.
Sharma had made false declaration under section 187C(1) of the Act on
28.04.1995 about 2,99,500 equity shares (Distinctive No. 1247001 to
1546500) and, which were registered/allotted in his name but, in fact,
these shares were sold on or before 31.03.1995 as Income Tax record do
not show his investment in these shares during the year 1994-95. The
SFIO in its report recommends that since, V.K. Sharma who was
Managing Partner of M/s JVG Investment and Director of M/s JVG
Departmental Stores Limited (In Liquidation), had made false declaration
under section 187C(1) of the Companies Act, 1956, therefore, he is liable
for punishment under section 628 of the Companies Act,1956.
23. That the SFIO vide its report dated 06.11.2009 states that during the
investigation of M/s JVG Departmental Stores Limited (In Liquidation), it
was noticed that Sh. Lallan Kumar Singh S/o Sh. R.P. Singh R/o Janak
Kishore Road, Kadam Kuan, Patna, (Bihar) purchased land for M/s JVG
Finance Limited (In Liquidation) and Sh. V.K. Sharma/his relatives. Sh.
Lalan Kumar Singh was also appointed director in M/s JVG Departmental
Stores Limited (In Liquidation) w.e.f. 07.07.1993 to 14.05.1996 (as also
admitted by Sh. Lallan Kumar Singh on oath on 07.07.2008 before SFIO).
Sh. Lalan Kumar Singh was summoned by SFIO. He appeared before
SFIO on 07.07.2008 and assured the inspectors to provide the details and
documents latest by 22.07.2008 and also requested to adjourn the
recordings of his statement for 22.07.2008. The SFIO report mentions that
Sh. Lallan Kumar Singh neither submitted details/documents nor
presented himself for further recording of his statement as assured by Sh.
Lallan Kumar Singh on oath before the inspectors. That on failure to
present himself before SFIO for recording of his statement and submission
of documents, the SFIO inspectors issued summons on 22.07.2008,
07.08.2008, 28.11.2008 and 16.12.2008 directing him to present himself
before the inspector and submit information/documents as assured by him
on oath. The SFIO report states that Sh. Lallan Kumar Singh neither
appeared before the inspector nor submitted the required information for
further investigation. The SFIO in its report recommends that since Sh.
Lallan Kumar Singh has been a close associate of Sh. V.K. Sharma. Sh.
Lallan Kumar Singh has played main role in the purchase and sale of plots
of land of JVG Project at Patna, therefore Sh. Lallan Kumar Singh, ExDirector of M/s JVG Departmental Stores Limited (In Liquidation) has
deliberately refused/ignored the summons issued by the SFIO is liable to
be prosecuted under sub-section (3) of Section 240 of the Companies act,
1956.
The copy of SFIO report dated 06.11.2009 along with relevant documents
are enclosed herewith and marked as Annexure - “M” (colly) for kind
perusal of the Hon'ble Court.
That direction be issued to Sh. Lallan Kumar Singh, Ex-Director to submit
the complete details of the transactions of purchase of land for M/s JVG
Finance Limited (in liquidation) to the SFIO for proper investigation.
24. That SFIO vide its report dated 11.02.2010 revealed that M/s JVG Finance
Limited (In Liquidation) has issued cheques for payment from its varios
bank accounts to Sh. Sushil Kumar Gupta, Partner of M/s KSB
Associates. Sh. Sushil Kumar Gupta appeared on 05.05.2008 and
07.05.2005
before
SFIO
inspectors
and
submitted
the
relevant
information/documents and stated on oath that he received Rs. 22.50
crores from JVG Group of Companies for purchase of land in District
Gurgaon, Haryana. Sh. Sushil Kumar Gupta stated that he received
maximum amount from M/s JVG Finance Limited (In Liquidation) through
cheques signed by Sh. V.K. Sharma and Sh. D.K. Kapur.
That the Hon'ble Court vide its order dated 27.11.2010 appointed a three
member committee committee consisting of Mr. B. N. Singh, Former Chief
Regional Planner, National Capital Region Planning Board, Mr. L. P.
Srivastava, Retired Additional Director General (Border), CPWD and Mr.
B.P. Singh, Mortgage Valuation Expert to submit a report on Gurgaon land
of the company (in liquidation). The report of the Committee is awaited.
25. That SFIO report dated 11.02.2010 divulged that M/s JVG Finance Limited
(JVGFL) through its CMD, Sh. Vijay Kumar Sharma had approached a
Mumbai based builder, M/s Jaycee Construction Co. during the year 1996
and booked around 28 flats in different buildings namely, Ashoka,
Panchmukhi, Panchamrut and Panchtantra situated at Versova, Andheri
(E), Mumbai, then under construction by M/s Jaycee Construction Co. M/s
JVG Finance Limited (In Liquidation) had made total payments of Rs.
12.30 Crore (including Rs. 2.00 crore from other JVG group companies) to
M/s Jaycee Construction Co. and its associated firms viz., M/s Fortune
Investments and A.K. Enterprises in the following manner from its three
Accounts maintained with Central Bank of India, Bandra Kurla Branch,
Dena Bank, Colaba Branch and United Western Bank, Marol Branch,
Mumbai:-
25.1) That SFIO in the aforesaid report disclosed that payments made
from account No. 278 maintained with Central Bank of India, Bandra
Kurla Complex, Mumbai are as under:TABLE D
SL. No. Cheque No.
Date
Amount
(Rs.)
Payee
1.
115001
14.05.1996
30,00,000
Jaycee Construction Co.
2.
118491
25.06.1996
30,00,000
-do-
3.
118490
25.06.1996
30,00,000
-do-
4.
118492
26.06.1996
30,00,000
-do-
5.
118495
27.06.1996
20,00,000
-do-
6.
118489
27.06.1996
30,00,000
-do-
7.
118500
22.07.1996
1,00,00,000 -do-
8.
166337
20.09.1996
15,00,000
-do-
9.
166225
25.09.1996
50,00,000
-do-
10.
166607
01.11.1996
1,00,00,000 -do-
11.
166608
04.11.1996
1,00,00,000 -do-
12.
115003
10.05.1996
30,00,000
Fortune Investments
13.
115002
14.05.1996
30,00,000
-do-
14.
166334
20.06.1996
15,00,000
-do-
15.
166336
20.09.1996
10,00,000
-do-
16.
166330
20.09.1996
15,00,000
-do-
17.
166331
20.09.1996
15,00,000
-do-
18.
166332
20.09.1996
15,00,000
-do-
19.
166332
20.09.1996
15,00,000
-do-
20.
115004
13.05.1996
30,00,000
A.K. Enterprises
21.
115005
13.05.1996
30,00,000
-do-
22.
118494
25.06.1996
30,00,000
-do-
23.
166254
07.10.1996
50,00,000
-do-
24.
118493
25.06.1996
30,00,000
-do-
Total:
8,50,00,000
25.2) That as per SFIO report payment made from account No.
110081 maintained with Dena Bank, Colaba Branch, Mumbai are as
under:-
TABLE E
SL. No
Cheque No.
Date
Amount
(Rs.)
Payee
1.
635605
26.02.1996
50,00,000
Jaycee Construction Co.
2.
635637
15.04.1996
30,00,000
-do-
3.
635638
16.04.1996
30,00,000
-do-
4.
635604
27.02.1996
30,00,000
Fortune Investments
5.
635636
15.04.1996
30,00,000
-do-
Total:
1,70,00,000
25.3) That as per SFIO report dated 11.02.2010 payment made from
account No. 522 maintained with United Western Bank, Marol Branch,
Mumbai are as under:TABLE F
SL. No.
1.
Cheque No.
89983
Date
29.02.1996
Amount (Rs.)
10,00,000
Payee
Fortune Investment
25.4) That as per SFIO report dated 11.02.2010 payment made from
account with Punjab & Sind Bank, Fort, Branch, Mumbai:TABLE G
SL. No.
Cheque No.
Date
Amount
(Rs.)
Payee
1.
938365
18.12.1996
1,00,00,000 Jaycee Construction Co.
2.
859710
17.02.1997
50,00,000
-do-
3.
859732
24.02.1997
50,00,000
-do-
25. 5) That SFIO report dated 11.02.2010 clearly divulged that with the
above payments, out of 28 booked flats, 24 flats were purchased by
M/s JVG Finance Ltd. (In Liquidation) from M/s Jaycee Construction
Co. in different buildings situated at Yari Road, Versova, Mumbai. It is
reported by the SFIO that M/s JVG Finance Ltd (in liquidation) had
cancelled the purchase of two flats, hence in all 22 flats were
purchased by M/s JVG Finance Limited (in liquidation). The balance
two flats were purchased later on by M/s Perpetual Finvest Pvt. Ltd.
and M/s Supreme Lease Finvest Pvt. Ltd., companies owned by Sh.
D.K. Kapur, Statutory Auditor/Executive Director (Finance) of JVG
Finance Ltd. Sh. D.K. Kapur also purchased 2 more flats in
Panchtantra- II Building during Nov. 1997 from M/s Jaycee
Construction Co. The details of these flats are as under:TABLE H
SL.
No.
Property's
detail
Name
of the
Seller
Name Date of
of the purchas
Buyer
e
Amount &
Name of the
Cheque details
Bank
1.
Flat No. B501,
5th
Floor,
Ashoka
Apartments,
Panchmarg,
Yari Road,
Andheri
(W),
Mumbai
M/s
Fortune
Investm
ents
Mr.
21st
Vinay Decemb
Kumar er,1996
Sharma
1.
Ch.
166332
13.9.96 for
13,45,000
2.
Ch.
166333
13.9.96
Rs.15,00,000
3.
Ch.
089989
28.2.96 for
95,000
2.
Flat No. B502,
5th
Floor,
Ashoka
Apartments,
Panchmarg,
Yari Road,
Andheri
(W),
Mumbai
M/s
Fortune
Investm
ents
Mr.
21st
Vinay Decemb
Kumar er,1996
Sharma
1.
Ch.
No. 1)
Dena
635604
dt. Bank
(Ch.
27.2.96 for Rs. No. 1)
30,00,000
2)
CBI,
2.
Ch.
No. Bandra
166336
dt. Kurla
13.9.96 for Rs. Complex
30,000
3.
Flat No. B504,
5th
Floor,
Ashoka
Apartments,
Panchmarg,
Yari Road,
Andheri
(W),
Mumbai
M/s
Fortune
Investm
ents
Mrs.
21st,
Seema Decemb
Rani
er, 1996
w/o
Satinde
r
Kumar
Dutt
1.
Ch.
No. 1.CBI,
166334
dt. Bandra
13.9.96 for Rs. Kurla
15,00,000
Complex
2.
Ch.
No. (Ch.
No.
166330
dt. 1&2)
13.9.96 for Rs.
2,55,000
4.
Flat No. B- M/s
Mrs.
21st,
1.
Ch.
No. 1.
CBI,
702,
7th Fortune Meena decembe 115003
dt. Bandra
Floor,
Investm kshi
r, 1996 10.5.96 for Rs. Kurla
No. 1.CBI,
dt. Bandra
Rs. Kurla
Complex
No. (Ch.
No.
dt. 1&2)
for 2.United
Western
No. Bank
dt.
Rs.
Ashoka
ents
Apartments,
Panchmarg,
Yari Road,
Andheri
(W),
Mumbai
Vishal
Sharma
29,70,000
Complex
2.
Ch.
No. (Ch.
No.
166336
dt. 1&2)
13.9.96 for Rs.
60,000
5.
Flat No. B503,
5th
Floor,
Ashoka
Apartments,
panchmarg,
Yari Road,
Andheri
(W0,
Mumbai
M/s
Fortune
Investm
ents
Mrs.
21st
Seema Decemb
Rani
er, 1996
w/o
Satinde
r
Kumar
Dutt
6.
Flat No. B701,
7th
Floor,
Ashoka
Partments,
Panchmarg,
Yari Road,
Andheri
(W),
Mumbai
M/s
Fortune
Investm
ents
Mrs.
21st
1.
Ch.
No.
Meena Decemb 166330
dt.
kshi
er, 1996 13.9.96
for
Vishal
Rs.12.45 lacs
Sharma
2.
Ch.
No.
166336
dt.
13.9.96 for Rs.
40,000
3.
Ch.
No.
166331
dt.
13.9.96 for Rs. 15
lac
4.
Ch.
No.
166332
dt.
13.9.96 for Rs.
1.45 lac
7.
Flat No. B704,
7th
Floor,
Ashoka
Apartments,
Panchmarg,
Yari Road,
Andheri
(W),
Mumbai
M/s
Fortune
Investm
ents
Mrs.
21st
1.
Ch.
No. 1.
United
Seema Decemb 089983
dt. Western
Rani
er, 1996 28.2.96 for Rs. Bank
(1st
w/o
9.05 lac
Cheque)
Satinde
2.
Ch.
No. 2.
CBI,
r
166336
dt. Bandra
Kumar
13.9.96 for Rs. Kurla
Dutt
8.40 lac
Complex
(Ch. No. 2)
8.
Flat No. B703,
7th
Floor,
Ashoka
Apartments,
Panchmarg,
Yari Road,
Andheri
(W),
Mumbai
M/s
Fortune
Investm
ents
Mrs.
Seema
Rani
w/o
Satinde
r
Kumar
Dutt
9.
Flat No. A201,
Panchmukhi
-B, Offyari
Roard,
M/s
A.K.
Enterpri
ses
M/s
JVG
Financ
e
Limited
CBI, Bandra
Kurla
Complex
(Ch. No. 1to
4)
Versova,
Andheri (W)
Mumbai
10.
Flat No. B- -do202,
Panchmukhi
-B, Off Yari
Road,
Versova,
Andheri
(W),
Mumbai
M/s
In 1996
JVG
Financ
e
Limited
11.
Flat No. B- -do302,
Panchmukhi
-B, Off Yari
Road,
Versova,
Andheri
(W),
Mumbai
M/s
JVG
Financ
e
Limited
12.
Flat No. B- -do402,
Panchmukhi
-B, Off Yari
Road,
Versova,
Andheri
(W),
Mumbai
M/s
JVG
Financ
e
Limited
13.
Flat No. B- -do101,
Panchmukhi
-B, Off Yari
Road,
Versova,
andheri
(W0,
Mumbai
M/s
16.10.96
JVG
Financ
e
Limited
14.
Flat
No.
202,
Panchmrut,
Panchmarg,
Yari Road,
Andheri
(W),
Mumbai
M/s
7.4.1997 1.
Ch.
No.
JVG
166607
dt.
Financ
14.10.96 & Ch.
e
No. 166608 dt.
Limited
18.10.96
total
amounting to Rs.
52.50 lac.
15.
Flat
No. -do302,
Panchmrut,
Panchmarg,
Yari Road,
andheri (W),
Mumbai
M/s
7.4.1997
JVG
Financ
e
Limited
16.
Flat
No.
502,
Panchmrut,
Panchmarg,
M/s
7.4.1997 Ch. No. 566008 CBI, Bandra
JVG
dt. 28.10.96 for Kurla
Financ
Rs. 52.50 lac
Complex.
e
M/s
Jaycee
Constru
ction
Co.
M/s
Jaycee
Constru
ction
CBI, Bandra
Kurla
Complex,
Mumbai.
Yari Road, Co.
Versova,
Andheri
(W),
Mumbai
Limited
17.
Flat
No.
104,
Panchtantra
II,
Panchmarg,
Yari Road,
andheri (w0
, Mumbai
M/s
Jaycee
Constru
ction
Co.
M/s
JVG
Financ
e Ltd.
18.
Flat
No.
105,
Panchtantra
II,
Panchmarg,
Yari Road,
Andheri
(W),
Mumbai
M/s
Jaycee
Constru
ction
Co.
M/s
JVG
Financ
e Ltd.
19.
Flat
No.
107,
CWing,
Panchtantra
II,
Panchmarg,
Yari Road,
Andheri,
(W),
Mumbai
M/s
Jaycee
Constru
ction
Co.
M/s
16.8.96
JVG
Financ
e Ltd.
20.
Flat
No.
407,
CWing,
Panchtantra
II,
Panchmarg
h,
yari
Road,
andheri,
(W),
Mumbai
M/s
Jaycee
Constru
ction
Co.
M/s
17.8.96
JVG
Financ
e
Limited
21.
Flat
No.
504,
CWing,
Panchtantra
II,
Panchmarg,
Yari Road,
Versova,
Andheri(W),
Mumbai
M/s
Jaycee
Constru
ction
Co.
M/s
JVG
Financ
e Ltd.
1.
Ch.
No.
118492,
dt.
25.6.96 for Rs.
11,52,500
2.
Ch.
No.
118495
dt.
25.6.96 for Rs.
20,00,000
3.
Ch.
No.
118489
dt.
25.6.1996 for Rs.
2,95,5000
4.
Ch.
No.
118500
dt.
17.7.96 for vRs.
3,05,350
CBI, Bandra
Kurla
Complex,
Mumbai
22.
Flat
No.
505,
CWing,
Panchtantra
II,
Panchmarg,
Yari Road,
Andheri
(W),
Mumbai
M/s
Jaycee
Constru
ction
Co.
M/s
JVG
Financ
e Ltd.
23.
Flat
No.
506,
Cwing,
Panchtantra
II,
Panchmarg,
Yari Road,
Andheri
(W),
Mumbai
M/s
Jaycee
Constru
ction
Co.
M/s
19.12.97 Ch. No. 560651 Corporation
Perpetu
dt. 8.12.97 for Rs. Bank
al
29,55,000
Finvest
Pvt.
Ltd.,
Citi
Centre,
Near
Bacha
Park,
Meerut,
uttar
Prades
h
(Suppo
sed to
be
owned
by D.K.
Kapur)
24.
Flat
No.
606,
CWing,
Panchtantra
II,
Panchmarg,
Yari Road,
Andheri
(W),
Mumbai
M/s
Jaycee
Constru
ction
Co.
Mrs.
7.11.97
Sushm
a Kapur
& Mr.
Puneet
Kapur
Pay order
376692
17.10.97 for
amount of
34,47,500
No. Citi
Bank,
dt. Bombay
an
Rs.
25.
Flat
No.
607,
CWing,
Panchtantra
II,
Panchmarg,
Yari Road.
Andheri
(W),
Mumbai
M/s
Jaycee
Constru
ction
Co.
Sh.
7.11.97
D.K.
Kapur
& Mr.
Puneet
Kapur
Pay order
376693
17.10.97 for
amount of
34,47,500
No. Citi
Bank,
dt. Bombay
an
Rs.
26.
Flat
No.
106,
CWing,
Panchtantra
II,
Panchmarg,
Yari Road,
Andheri
M/s
Jaycee
Constru
ction
Co.
M/s
19.12.96 P.o./ch.
No.
Suprem
560652
dt.
e
8.12.97 drawn on
Lease
Corporation Bank
Finvest
Pvt.
Ltd.,
Citi
(W),
Mumbai.
Centre,
Near
Bacha
Park,
Meerut,
U.P.
The above transaction of flats is explained with the help of chart :
CHART-8
Fund t/f from a/c no. 278
Central Bank of India
Bandra Kurla Complex,
Mumbai
Fund t/f from a/c no. 278
Central Bank of India
Bandra Kurla Complex,
Mumbai
M/s JVG Finance Ltd.(In Liq.) withdrawn
money Rs.12.30 crore from its different
bank accounts as shown in flow
chart and thereafter the
said money was
given to purchase following flats
in different apartments situated at Yari
Road, Versova, Andheri (W), Mumbai
in 1996-97 to the following builders
M/s Jaycee Construction
M/s Fortune Investments
Fund t/f from a/c no.
110081, Dena
Bank, Colaba Branch,
Mumbai
Fund t/f from a/c no.
522,
United Western Bank,
Marol
Branch, Mumbai
Fund t/f from Punjab
& Sind
Bank, Fort Branch,
Mumbai
M/s A.K. Enterprises
1. Flat No.202, Panchamrut 1. Flat No. B - 501, Ashoka 1. Flat No. A-201, Panchmukhi
2. Flat No.302, Panchamrut 2. Flat No. B - 502, Ashoka 2. Flat No. B-202, Panchmukhi
3. Flat No.502, Panchamrut 3. Flat No. B - 504, Ashoka 3. Flat No. B-302, Panchmukhi
4. Flat No.104, Panchtantra 4. Flat No. B - 702, Ashoka 4. Flat No. B-402, Panchmukhi
5. Flat No.105, Panchtantra 5. Flat No. B - 503, Ashoka 5. Flat No. B-101, Panchmukhi
6. Flat No.107, Panchtantra 6. Flat No. B - 701, Ashoka
7. Flat No.407, Panchtantra 7. Flat No. B - 704, Ashoka
8. Flat No.504, Panchtantra 8. Flat No. B - 703, Ashoka
9. Flat No.505, Panchtantra
10. Flat No.506, Panchtantra
11. Flat No.607, Panchtantra
12. Flat No.606, Panchtantra
13. Flat No.106, Panchtantra
25.6) That SFIO in its report dated 11.02.2010 disclosed that
investigation was initiated with M/s Jaycee Construction Co. and in
response to summons issued by SFIO Sh. Anand Bhagtani, Partner of
M/s Jaycee Construction Co. appeared before Inspectors of SFIO on
28.05.2008 and 29.05.2008 and his statement was recorded on oath
wherein he, inter alia, stated that in the year 1996 Sh. V.K. Sharma,
chairman of JVG Finance Ltd. had approached him for the purchase of
different flats in Versova area, Andheri (W), Mumbai. During that
period four projects namely, Panchtantra-II, Panchmukhi, Panchamrut
and Ashoka-B were under construction. The Projects at Panchtantra-II
and Panchamrut was constructed by M/s Jaycee Construction Co.
and Panchmukhi was constructed by M/s A.K. Enterprises and
Ashoka-B was constructed by Fortune Investments. Sh. V.K. Sharma
had shown interest in their projects and booked 8 flats initially in
different buildings and they received the payment of Rs. 90 lac in the
month of Feb., 1996 as advance from M/s JVG Finance Ltd. Then they
kept on receiving the payments from M/s JVG Finance Ltd., and Sh.
Vijay Kumar Sharma had negotiated the purchase of more than 24
flats.
25.7) That SFIO report further disclosed that total payment of Rs.
12.30 Crore was made upto February 1997. Sh. Anand Bhagtani,
partner
of
M/s
Jaycee
Construction
Co.
submitted
the
details/documents in respect of payments received from M/s JVG
Finance Ltd. (In Liquidation) and the sale agreements of 22 flats
entered into between M/s Jaycee Construction Co., A.K. Enterprises,
Fortune Investments and M/s JVG Finance Ltd. (In Liquidation) and
others, wherein the company
confirmed that the payment made to
M/s Fortune Investment of Rs. 2.15 Crore was towards the purchase of
flats in the project known as Ashoka-B situated at Yari Road, Versova,
Andheri (W) and further requested to adjust against the flat
consideration and make agreements in the names of Mrs. Meenakshi
V Sharma (Flat No. 701, and 702), Mrs. Seema Rani (Flat No. 503,
504, 703 and 704) and Mr. Vinay Kumar Sharma (Flat No. 501 and
502). Sh. Anand Bhagtani further stated during the investigation of the
SFIO that total amount received from JVG Finance Limited (In
Liquidation) was Rs. 11.30 Crore. Mr. Bhagtani further stated that Sh.
V. K. Sharma, Chairman of JVG Finance Limited (In Liquidation) had
negotiated the purchase of
total 28 flats to be purchased and we
received the payment of Rs. 11.30 crore from JVG Finance Limited (In
Liquidation). Mr. Bhagtani further stated before SFIO that the
transactions in respect of 24 flats were finalized and they had an
excess amount of Rs. 1.52 crore in the A/c of M/s JVG Finance Limited
(In Liquidation) in our accounts and the excess amount of Rs. 1.52
crore was refunded vide different cheques/pay orders viz., 4 cheques
no. 635827, 635825, 635847 and 635921 drawn on New India Co-op
Bank, Yari Road Branch. Mr. Bhagtani also clarified while recording his
statement before SFIO that M/s JVG Finance Limited (In Liquidation)
cancelled the sale of two flats nos. 106 and 506 of Panchtantra-II on
the instructions of Sh. Vijay Kumar Sharma and refunded amount of 56
lac to M/s JVG Finance Limited (In Liquidation) on 19.12.1997 and
22.12.1997.
25.8) That SFIO in its report dated 11.02.2010 makes clear that M/s
JVG Finance Limited had purchased 22 Flats from M/s Jaycee
Construction Co. and during the year 1996-97 and the funds of the
company were used for the said acquisition of 22 flats at Mumbai.
Further the report of SFIO discloses that 8 flats in Ashoka-II building,
Versova, Andheri (W), Mumbai, acquired by M/s JVG Finance Limited
(In Liquidation) in the names of different relatives of Sh. Vijay Kumar
Sharma in the year 2001 and 2003 (winding up date 05.06.1998) to
M/s Cymbionic Marketing Pvt. Ltd (4 flats bearing no. 701, 702, 703
and 704) and to one Patel Family (4 flats bearing no. 501,502,503 and
504) and the funds were siphoned off by Sh. Vijay Kumar Sharma, ExCMD, JVG Group of Companies (In Liquidation) and its associates.
The SFIO in its report also mentioned that as the above said flats were
purchased out of the funds of M/s JVG Finance Limited (In
Liquidation), the company/ex-director should have disclosed the said
properties to the office of Official Liquidator, Delhi High Court, New
Delhi but the company (In Liquidation) did not disclose the same to
Official Liquidator, New Delhi. The SFIO report clearly establishes that
Sh. V.K. Sharma, Ex-CMD, JVG Group of Companies (In Liquidation)
had with malafide intentions, got these flats registered in the names of
his relatives, Mrs. Seema Sharma, Mrs. Meenakshi Sharma, both
sisters-in-law and Sh. Vinay Sharma, brother-in-law.
25. 9) That SFIO also recorded statement of Sh. Vinay Kumar Sharma on
30.04.2008, 01.05.2008 and 12.05.2008 wherein, he interalia, stated
that in the year 1996, Sh. Vijay Kumar Sharma, his brother-in-law
(sister's husband), had purchased flats in Ashoka Apartments, Yari
Road, Andheri, Mumbai in his name and also in the names of his
sisters, Smt. Seema Rani and Smt. Meenakshi Sharma. He further
confirmed before SFIO the purchase of said flats No. 501 and 502 in
his name by Sh. V.K. Sharma. The payments of the said flats were
made by Sh. V.K. Sharma out of the bank accounts of M/s JVG
Finance Limited (In Liquidation) maintained at Mumbai. Sh. Vinay
Kumar Sharma further stated before SFIO that the said flats were sold
by Sh. V.K. Sharma in the year 2002 and the proceeds of such sale
were received by Sh. V.K. Sharma. The SFIO also recorded
statements of Smt. Seema Sharma (sister-in-law of Sh. V.K. Sharma)
on 22.05.2008 and 06.06.2008 and Sh. V.K. Sharma on 10.11.2008.
The report of SFIO also revealed that Sh. V.K. Sharma while recording
his statement before SFIO accepted that flats were purchased in the
names of relatives and whatever payments were made available in
record which he did not remember and as far as he remembered the
said flats were already sold but he did not provided full information
about the sale of said flats and the sale considerations.
25.10) Details of Flats in Ashoka Apartment:
a) That Sh. V.K. Sharma, Ex-CMD, JVG Group of
Companies (In Liquidation) sold 4 flats viz., Flat No. 501,
Flat No. 502, Flat No. 503 and Flat No. 504 in Ashoka
Towers, Yari Road, Versova during the year 2003 to one
Patel family. That as per report of SFIO statement of Smt.
Parul M. Patel, who purchased the above said four flats
from Sh. V.K. Sharma, was recorded on 27.08.2008 and
08.09.2008 wherein she confirmed the purchase of Flat No.
B-501, Flat No. B-502, B-Flat No. B-503 and Flat No. B-504
in Ashoka Towers, Yari Road, Versova during the year
2003 from Sh. V.K. Sharma. That statement of Sh. Mahesh
Patel, one of the purchaser of the above said flats was also
recorded before the SFIO on 08.09.2008 and 30.03.2009,
wherein he confirmed that flat nos. B-501 to B-504, Ashoka
Apartments in Versova, Mumbai-61 was purchased for total
consideration of Rs. 1,02,10,000/- (Rs. One Crore Two Lac
Ten Thousand Only) approx. As per the SFIO report the
said payment was made 60% through cheques of Standard
Chartered Bank, ICICI Bank, ICICI Bank, ABN Amro Bank,
ICICI Bank Dep. and 40% payment was made in cash. As
per SFIO report the said Payments/Cheques/DD were duly
received by Sh. V.K. Sharma or his representatives like one
Mr. Surya Thapar etc.
b) That as per SFIO report four more flats viz., Flat No. 701,
702, 703 and 704 at seventh floor of Ashoka Apartment,
Yari Road, Versova, Mumbai was sold by Sh. V.K. Sharma
to M/s Cymbionic Marketing Pvt. Ltd represented by Sh.
Arfeen Khan, Managing Director and Sh. Harish Sharma,
Director. The Flat nos. 703 and 704 in Ashoka Apartments
was sold for consideration of Rs. 43 Lac vide Cheque No.
476759 dated 10.10.2000 and Ch. No. 426817 dated
13.10.2000. Both the cheques were drawn in favour of
Seema Rani (sister-in-law of Sh. V K Sharma) on the
instructions of Sh. V.K. Sharma. The SFIO report further
divulge that Sh. V.K. Sharma agreed to sell the Flat Nos.
701 and 702 at seventh floor of Ashoka Apartment, Yari
Road, Mumbai, and deal was negotiated with Sh. Harish
Sharma, one of the directors of M/s Cymbionic Marketing
Pvt. Ltd for a consideration of Rs. 58 Lakh vide Ch.
No.759176855/2001 and 75917785/2001 drawn on Global
trust Bank (now Oriental Bank of Commerce), Versova
Branch. As per SFIO report all these cheques were paid in
favour of Meenakshi Vishal Sharma (sister-in-law of Sh.
V.K. Sharma).As per SFIO report all the above transactions
were confirmed by the respective banks through which
payment was released and the banks in which payment
was deposited. It is pertinent to mention here that all these
transaction were operated after the date of winding up order
of the company i.e. 05.06.1998, without any intimation to
the Hon'ble High Court and the Official Liquidator, Delhi by
Sh. V.K. Sharma ,Ex-CMD, JVG Group of Companies (In
Liquidation).
The alleged purchase and sale of Flats at Ashoka Apartment is
explained with the help of following chart:
M/s JVG Finance Ltd(In Liq.) purchased following 8 Flats in
Ashoka Apartment, Yari Road, Versova, Andheri (W),
Mumbai, in 1996 from M/s Fortune Investments from its
own funds in the name of his relatives & his name.
B-501
B-502
B-503
The above 4 Flats were sold to
one Patel Family in 2003 after
the date of winding up
B-504
B-701
B-702
B-703
B-704
The above 4 Flats were sold to
M/s
Cymbionic Marketing (P) Ltd. in
2001after
the date of winding up
25.11) Details of Flats in Panchamrut Apartment:
That as per report of SFIO the company (In Liquidation) purchased
three flats in Panchamrut Apartment, Yari Road, Versova, Andheri (W),
Mumbai viz., Flat No. 202, Flat No. 302 and Flat No. 502. The
investigation of SFIO with respect to above flats revealed that Flat No.
202, was transferred by M/s JVG Finance Limited (In Liquidation),
through its Ex- CMD, Sh. V.K. Sharma in the name of Smt. Maya
Choudhary on 27.05.1997. Smt. Maya Choudhary further transferred
the said flat in the name of Mrs. Shampa Thapar w/o Sh. Surya
Thapar, one of the employees of M/s JVG Group Companies and a
close associate of Sh. V.K. Sharma, vide general power of attorney
dated 10.07.1997. Subsequently, vide an agreement to sell dated
30.04.2001, Mrs. Maya Choudhary, as vendor and M/s JVG Finance
Ltd., (In liquidation) as confirming party sold and assigned all the
right/title and interest in the said flat to Mrs. Shampa Thapar. The said
agreement to sell was signed by Mrs. Shampa Thapar, being Power of
Attorney for both Mrs. Maya Choudhary and M/s JVG Finance Limited
(In Liquidation). Further, Mrs. Shampa Thapar had further sold the flat
to Mr. Banwari P. Bhargav in the year 2003 and presently he is
occupying the flat. Statement of Sh. Banwari P. Bhargava was also
recorded before SFIO on 12.01.2009 wherein he, inter alia, stated that
he had entered an agreement to sell with Smt. Shampa Thapar in
respect of said flat on 15.05.2003.
a) That in the case of Flat No. 302, Panchamrut Apartment,
Yari Road, Versova, Andheri (W), Mumbai, the SFIO report
reveals that the said flat was transferred by M/s JVG
Finance Limited (In Liquidation) through its Ex-CMD, Sh.
V.K. Sharma in the name of Sh. Suresh K. Grover through
a MOU signed between M/s JVG Finance Limited (In
Liquidation) and M/s Rohitasha Movies on 30.05.1996. As
per MoU, JVG Group of Companies had entered in an
understanding with M/s Rohitasha Movies for exhibiting the
name of the said company in the film named “DHAAL”
along with its publicity. Both the parties mutually agreed for
the release of the said film as “JVG GROUP PRESENTS”.
That the company i.e. JVG Finance Limited (In Liquidation)
had agreed to pay consideration and a sum of Rs. 50 lac to
the producer on execution of the said MoU and also the
company had handed over the possession of four flats in
different buildings situated at Versova, Mumbai. An
agreement to sell the Flat No. 302 was executed between
M/s JVG Finance Limited through its CMD, Sh. Vijay Kumar
Sharma and M/s Rohitasha Movies on 10.12.1997. Further,
vide an agreement to sell dated 01.07.1998 Sh. Suresh
Grover had sold the flat to his wife Smt. Priya Grover. M/s
JVG Finance Limited (In Liquidation) also made a payment
of Rs. 50 lac vide cheque No. 118486 dated 25.06.1996
from A/c No. 278 maintained by M/s JVG Finance Limited
(In Liquidation) with Central Bank of India, Bandra Kurla
Complex
Branch,
Mumbai.
The
Thareja
Committee
appointed by the Hon'ble High Court vide its order dated
22.07.2004 has rejected the ownership claim of Mrs. Priya
Grover. However, against the order of Thareja Committee
Mrs. Priya Grover has filed an appeal vide C.A. No.
1009/06 in C.P. No. 265/1998 titled as M/s Rohitasha
Movies Vs. M/s JVG Finance Limited (In Liquidation) & Anr.
which is pending in Hon'ble High Court of Delhi.
b) That in the case of Flat No. 502, Panchamrut Apartment,
Yari Road, Versova, Andheri (W), Mumbai, the SFIO report
reveals that the said flat was transferred by M/s JVG
Finance Limited (In Liquidation) through one of its
employees, Sh. Dharminder Pal Singh Chauhan in the
name of Sh. Rakesh Jag Mohan Pandey on 13.04.1998. An
agreement to sell the said flat was executed on 13.04.1998
between M/s JVG Finance Limited (In Liquidation) and Sh.
Rakesh Jagmohan Pandey and payment of Rs. 38 lakh was
received by Sh. V.K. Sharma in cash through Sh.
Dharminder Pal Singh Chauhan, one of the employees of
JVG group of companies. SFIO also recorded the
statement of Sh. Rakesh Jagmohan Pandey on 01.09.2008
wherein, he inter alia, stated that he had purchased the
said Flat No. 502, 5th Floor, Panchamrut, Versova, Andheri
(W), Mumbai, at the behest of Sh. Dharminder Pal Singh
Chauhan (Ex-Manager with JVG Company at Allahabad),
who arranged the said deal in Hotel Le Meridian, New Delhi
with Sh. V. K. Sharma. The matter with respect to Flat No.
502, Panchamrut Apartment, Yari Road, Versova, Andheri
(W), Mumbai, is pending before the Ld. J.P. Aggarwal
Committee appointed by the Hon'ble High Court of Delhi
vide order dated 23.05.2010.
25.12) Details of Flats in Panchmukhi Apartment:
That as per report of SFIO the company (In Liquidation) purchased five
flats in Panchmukhi Apartment, Yari Road, Versova, Andheri (W),
Mumbai viz., Flat No. B-201, B-202, B-302, B-402 and B-101. The
SFIO investigation was carried out with respect to the five flats situated
in Panchmukhi Apartment.
a) That the Flat No. B-201, Panchmukhi Apartment, Yari
Road, Versova, Andheri (W), Mumbai is in the possession
of Official Liquidator, Delhi. The said flat was taken in
possession on 19.01.2010 vide Hon'ble High Court of Delhi
order dated 01.12.2009.
b) That in the case of Flat No. B-202, Panchmukhi
Apartment, Yari Road, Versova, Andheri (W), Mumbai, the
SFIO report reveals that the said flat was transferred by M/s
JVG Finance Limited (In liquidation) through its CMD, Sh.
V.K. Sharma in the name of Mrs. Anita Jain, (the second
wife of Sh. V.K. Sharma), Proprietor:M/s Flying Colours
Advertising Agency in the year 2001. The said flat was
given as an adjustment of the dues of her firm, M/s Flying
Colours Advertising Agency against M/s JVG Finance
Limited (In Liquidation). SFIO report further states that the
said flat was sold to Ms. Benu Berry vide sale agreement
dated 13.12.2001 for an amount of Rs. 22,00,000/- and
Mrs. Anita Jain received the payments vide cheque No.
042170 dated 13.12.2001 of Rs. 9,00,000 and Ch. No.
042171 dated 14.11.2001 of Rs. 10,71,975.
c) That in the case of Flat No. B-302, Panchmukhi
Apartment, Yari Road, Versova, Andheri (W), Mumbai, the
SFIO report reveals that the said flat was transferred by M/s
JVG Finance Limited through its CMD, Sh. V.K. Sharma in
the name of M/s Snappers Advertising and Marketing (P)
Ltd. on 13.04.1998. As per SFIO report an agreement to
sell the said flat was executed on 13.04.1998. The SFIO
report further divulge that M/s Snappers and Marketing (P)
Ltd had got this flat in lieu of the outstanding payments of
Rs. 57 lakh (Approx). Against M/s JVG Finance Limited (In
Liquidation). The SFIO report clearly establishes that Sh.
V.K. Sharma had sold/transferred the said flat in the name
of M/s Snappers Advertising and Marketing (P) Ltd. through
an agreement to sell dated 24.04.1998 without the approval
of Board of Directors to adjust the liabilities of said M/s
Snappers Advertising and Marketing (P) Ltd. in violation of
Reserve Bank of India order dated 10.10.1997.
d) That in the case of Flat No. B-402, Panchmukhi
Apartment, Yari Road, Versova, Andheri (W), Mumbai, the
SFIO report reveals that the said flat was transferred by M/s
JVG Finance Limited (In Liquidation) through its CMD, Sh.
V.K. Sharma in the name of Sh. Rakesh Jagmohan Pandey
on 13.04.1998. As per SFIO report an agreement to sell the
said flat was executed on 13.04.1998 between M/s JVG
Finance Limited (In Liquidation) and Sh. Rakesh Pandey
and payment of Rs. 31 lakh was received by Sh. V.K.
Sharma in cash through Dharminder Pal Singh Chauhan,
one of the ex-employees of JVG company. The matter with
respect to Flat No. B-402, Panchmukhi Apartment, Yari
Road, Versova, Andheri (W), Mumbai, is pending before the
Ld. J.P.Aggarwal Committee appointed by the Hon'ble High
Court of Delhi vide its order dated 23.05.2010.
25.13) Details of Flats in Panchtantra Apartment:
That as per SFIO report M/s JVG Finance Limited (In Liquidation) had
purchased six flats in Panchtantra -II, Yari Road, Versova, Andheri
(W), Mumbai viz., Flat No. 104, Flat No. 105, Flat No. 107, Flat No.
407, Flat No. 504 and Flat No. 505. As per inveatigation of SFIO in
respect of the said six flats situated at Panchtantra-II Building,
Versova, Andheri (W), Mumbai, was acquired by M/s JVG Finance
Limited (In Liquidation) from M/s Jaycee Construction Co.
As per
SFIO report four flats bearing Nos. 104, 105,504 and 505 were
occupied by one Mr. Tarun Rathi.
a) That as per Flat No. 504 is concerned the said Flat was
sold by Sh. Sukhbir Singh representing as one of the ViceChairman of JVG Finance Limited (In Liquidation) to Ms.
Swati Varma. Sh. Tarun Rathi submitted documents in
respect of flat Nos. 104,105 and 504 which revealed that
the said flats were purchased by Smt. Bharti Bhagwan
Jadhav, Smt. Sunita P. Agarwal and Smt. Gitanjali Kumar
Pratap Singh in the same manner and the possession of
the said flats was handed over to Mr. Taun Rathi, power of
Attorney holder of these ladies. SFIO issued summons to
all the ladies but no one except Mr. Tarun Rathi appeared
before the SFIO inspectors and his statement was also
recorded. SFIO in its report clearly establishes that these
four ladies were used as front persons to camouflage the
dubious sale of these flats by Sh. Sukhbir Singh to these
ladies. SFIO in its report stated that these flats were the
properties of M/s JVG Finance Limited (In Liquidation) and
were sold unauthorizedly and the proceeds of sale were
misappropriated by Sh. V.K. Sharma and Sh. Sukhbir Singh
and the funds of the company thus siphoned off by Sh. V.K.
Sharma in connivance with Sh. Sukhbir Singh.
b) That in the case of Flat No. 407 in Panchtantra-II, the
said flat was transferred by M/s JVG Finance Limited (In
Liquidation) through its director, Sh. B.P. Singh in the name
of Sh. Virender Kumar Sharma on 24.02.1998 and the
agreement to sell the said flat was executed on 24.02.1998
between M/s JVG Finance Limited (In Liquidation) through
its director, Sh. B.P. Singh and Sh. Virender Kumar Sharma
for an amount of Rs. 29 lac which was paid vide Cheques
No. 504701 and 504702 both dated 07.03.1998 for Rs. 29
Lac drawn on PNB. As per SFIO report Sh. Virender Kumar
Sharma sold the flat to Mrs. Rita Saxena in December,
1998 for a consideration of Rs. 25 Lac. Smt. Rita Saxena
sold the said flat further to Sh. Ved Prakash Arora.
c) That in the case of Flat No. 107 in Panchtantra-II the
investigation conducted by SFIO revealed that the said Flat
was transferred by M/s JVG Finance Limited through its ExCMD, Sh. V.K. Sharma in the name of Smt. Kalpana Nehra
on 07.07.2002. As per SFIO report an agreement to sell the
said flat was executed on 07.07.2002 between M/s JVG
Finance Limited (In Liquidation) through its Ex-CMD, Sh.
V.K. Sharma and Ms. Kalpana Nehra for an amount of Rs.
15 Lac. SFIO report states that Ms. Kalpana Nehra and one
Mr. Ajit Nawade are occupying the said flat.
25.14) That Reserve Bank of India vide its order dated 10.10.1997
restrained M/s JVG Finance Limited (In Liquidation) to sell any assets
without the necessary permission of Reserve Bank of India. Hence,
Sh. V.K. Sharma was not authorized to enter into any agreement on
behalf of the company (In Liquidation) for the sale of its assets.
To sum up, Sh. V.K. Sharma, being Chairman and Managing Director
of M/s JVG Finance Limited (In Liquidation), was in the position of
trustee and agent for the properties which were purchased by using
the funds of M/s JVG Finance Limited (In Liquidation). He had
dominion over the flats of the Company (In Liquidation) which were
purchased in the names of his relatives. The said flats were
subsequently
sold
and
the
sale
proceeds
were
ultimately
pocketed/misappropriated by Sh. V.K. Sharma. He is therefore, liable
for the offence of criminal breach of trust under section 409 read with
405 of IPC. As Chairman and MD of the Company (In Liquidation) it
was his duty to protect the interest of investors and shareholders of the
Company. He, however, deceived them by fradulently and dishonestly
converting the same for his own use. He caused damage, harm and
pecuniary loss to the company and made wrongful gains for himself.
He is liable to be prosecuted for the offence of cheating also under
section 418/420 read with section 415 of IPC. Since Sh. Vinay Kumar
Sharma, Smt. Seema Rani Datta and Smt. Meenakshi V. Sharma were
partners in this conspiracy, they are also liable to be prosecuted along
with Sh. V.K. Sharma under sections 490/405/418420 by virtue of
section 120B of IPC.Sh. V.K. Sharma is also liable to be prosecuted
under section 411 read with 410 of IPC as he received and retained
the property acquired by him through the offence of criminal breach of
trust and the same was “stolen property” within the meaning of section
410 of IPC. He is also liable for contempt of the winding up order dated
05.06.1998 passed by the Hon'ble High Court of Delhi.
25.15) That M/s JVG Finance Limited had acquired such flats in the
year 1996-1997 and did not intentionally disclose the said assets in the
company's balance sheet as fixed assets acquired during the year and
further the said flats were disposed of at sweet will of Sh. V.K. Sharma,
Ex-CMD without keeping in mind the interest of the company and also
in complete disregard of the RBI directions and thus causing wrongful
loss to the company. Also, to save the said properties from attachment,
the same were transferred in the names of different persons as is
evident from above. Further, the actual facts in respect of said flats
were not brought to the notice of the Hon'ble High Court or the Official
Liquidator knowingly that the winding up order was passed by the
Hon'ble High Court on 05.06.1998.
25.16) Sh. V.K. Sharma, Ex-CMD, JVG Group of Companies (In
Liquidation) was well aware about the existence of these properties
which were purchased out of the funds of M/s JVG Finance Limited (In
Liquidation). However, he did not fully and truly disclose to the Official
Liquidator the said properties. Therefore, he is liable to be prosecuted
under section 538 of the Companies Act, 1956. With intent to defraud
and deceive the company, its shareholders and creditors, Sh. V.K.
Sharma falsified the books of account and other papers by not showing
the properties purchased out of the funds of the Company. He, is
therefore, liable to be prosecuted under section 539 of the Companies
Act, 1956. Further, Sh. V.K. Sharma along with his associates, Sh.
Vinay Kumar Sharma, Smt. Seema Rani Datta and Smt. Meenakshi V.
Sharma has been instrumental in fraudulently alienating the properties
of M/s JVG Finance Limited purchased out of the funds of M/s JVG
Finance Limited (In Liquidation). They are therefore liable to be
prosecuted under Section 540/542/543 of the Companies Act, 1956.
Sh. V.K. Sharma is also liable for contempt of Hon'ble Delhi High
Court's Winding up order dated 05.06.1998.
25.17) That it is pertinent to mention here that out of the above said
flats some claims regarding the flats at Mumbai was also filed before
the Thareja Committee appointed by the Hon'ble High Court of Delhi &
some has filed appeal before the Hon'ble High Court of Delhi against
the order of Thareja Committee. The details of flats and their status
before Thareja Committee is enumerated as under:-
TABLE I
S.No.
FLAT No.
CLAIMANT
STATUS
REMARKS
01.
101, Panchmukhi Sh. Dilip Verma
Apartment
Rejected
on
27.03.2006
02.
302, Panchamrut Mrs. Priya Grover Rejected
on Mrs. Priya Grover
Apartment
& Mr. Suresh 05.04.2006
has
filed
an
Grover
appeal vide C.A.
No. 1009/06 in
C.P.
No.
265/1998 titled as
M/s
Rohitasha
Movies Vs. M/s
JVG
Finance
Limited
(In
Liquidation)
&
Anr. against the
order of Thareja
Committee which
is pending in
Hon'ble
High
Court of Delhi.
03.
202, Panchmukhi Ms. Benu Berry
Apartment
04.
202, Panchamrut Mrs.
Apartment
Thapar
05.
B-105,
Panchtantra
Apartment II
Ms.
Geetanjali Rejected
on Official
Kunwar Krishna 22.12.2009
Liquidator, Delhi
has
filed
an
Application
u/s
446
of
the
Companies Act,
1956, vide diary
No. 26923 dated
17.02.2010
for
taking
over
possession
of
Flat No. 105-B,
Panchtantra
Apartment
II,
which is pending
in the Hon'ble
High Court of
Delhi.
06.
B-104,
Panchtantra
Apartment II
Ms.
Bharti Rejected
on Official
Bhagwan Jadav 22.12.2009
Liquidator, Delhi
has
filed
an
Application
u/s
446
of
the
Companies Act,
1956, vide diary
No. 26930 dated
17.02.2010
for
taking
over
possession
of
Flat No. 104-B,
Panchtantra
Rejected
on
17.03.2006
Shampa Rejected
on
22.12.2006
Apartment
II,
which is pending
in the Hon'ble
High Court of
Delhi.
07.
B-505,
Panchtantra
Apartment II
Ms. Swati Verma Rejected
on Official
22.12.2009
Liquidator, Delhi
has
filed
an
Application
u/s
446
of
the
Companies Act,
1956, vide diary
No. 26926 dated
17.02.2010
for
taking
over
possession
of
Flat No. 505-B,
Panchtantra
Apartment
II,
which is pending
in the Hon'ble
High Court of
Delhi.
08.
B-504,
Panchtantra
Apartment II
Ms. Sunita
Aggarwal
9.
402, Panchmukhi Sh.
Rakesh
Apartment
and Jagmohan
502, Panchamrut Pandey
Apartment
10.
B-201
Panchmukhi
Apartment
P. Rejected
on Official
22.12.2009
Liquidator, Delhi
has
filed
an
Application
u/s
446
of
the
Companies Act,
1956, vide diary
No. 26924 dated
17.02.2010
for
taking
over
possession
of
Flat No. 504-B,
Panchtantra
Apartment
II,
which is pending
in the Hon'ble
High Court of
Delhi.
Pending
Order
before J. P. Committee
Aggarwal
awaited.
Committee.
of
Sh.
Krishna Hon'ble High Official Liquidator
Murari Sharma
Court vide its taken possession
order
dated on 19.01.2010.
01.12.2009
directed
the
Official
Liquidator
to
take
possession of
the said flat.
25.18) The transactions for purchase and sale of flats in Panchtantra,
Panchamrut, Panchmukhi and Ashoka Apartment executed after the date
of winding up of the company i.e., 05.06.1998 be declared invalid and Sh.
V.K. Sharma, their relatives and other persons who have pocketed the
sale consideration of above mentioned flats be ordered to deposit with
interest in the accounts of the company (in liquidation). It is submitted that
out of 22 flats, the Hon'ble Court vide order dated 27.11.2010 directed the
Official Liquidator to take possession of four flats viz. B-504, B-505, B-104
& B-105 in Panchtantra Apartment decided by G.P. Thareja Committee.
The Official Liquidator is in the process of taking over the possession of
the same. In case of one flat bearing No. 302 Panchamrut Apartment the
order passed by Thareja Committee Committee is challenged by way of
appeal in the Hon'ble High Court of Delhi. One flat bearing No. B-201
Panchmukhi Apartment is already in possession of Official Liquidator. The
Hon'ble Court may kindly consider for allowing the Official Liquidator to
take over the possession of 17 flats leaving five flats in which orders have
already been passed or Official Liquidator is in the possession of the said
flats as mentioned below :
(1)
Flat No. B-501, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(2)
Flat No. B-502, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(3)
Flat No. B-504, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(4)
Flat No. B-702, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(5)
Flat No. B-503, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(6)
Flat No. B-701, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(7)
Flat No. B-703, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(8) Flat No. B-704, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(9) Flat No. B-202, Panchmukhi Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(10) Flat No. B-302, Panchmukhi Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(11) Flat No. B-402, Panchmukhi Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(12) Flat No. B-101, Panchmukhi Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(13) Flat No. 202, Panchamrut Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(14) Flat No. 302, Panchamrut Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(15) Flat No. 502, Panchamrut Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai.
(16) Flat No. 107, Panchtantra Apartment, Off Yari, Versova, Andheri
(W), Mumbai.
(17) Flat No. 407, Panchtantra Apartment, Off Yari, Versova, Andheri
(W), Mumbai.
25.19)
The
direction
be
issued
to
Sh.
D.K.
Kapur,
Statutory
Auditor/Executive Director (Finance) of JVG Finance Limited (in
liquidation) owner of M/s Perpetual Finvest Pvt. Ltd. and M/s Supreme
Lease Finvest Pvt. Ltd. who purchased Flat No.506, Panchtantra II, Flat
No. 606, Panchtantra II, Flat No. 607 Panchtantra II and Flat No. 106,
Panchtantra II to disclose the source of consideration, so that ownership
of these four flats can be ascertained for further necessary action.
The copy of relevant documents collected by SFIO during their
investigation with regard to above flats are enclosed and marked as
Annexure - “N” (Colly) to this application for kind perusal of the Hon'ble
Court.
26. That SFIO vide its report dated 11.02.2010 in finding No. 10 disclosed
Promoters Bogus contribution of Rs. 36 crore in Share Application Money
for allotment of Equity Share in JVG Finance Limited (In Liquidation)
Public Issue of 1997. SFIO in the said report found out that M/s JVG
Finance Limited (In Liquidation), through its prospectus dated 30.01.1997,
came out with a public issue of 50,00,000 Equity Shares of Rs. 10/- each
at a premium of Rs. 80/- aggregating to Rs. 45 crores. As per SFIO report
Public Issue opened on 26.03.1997 and closed on 05.04.1997. As per
details mentioned in the prospectus of this Public Issue, in addition to Rs.
50,00,000 Equity Shares, 40,00,000 Equity Shares aggregating to Rs. 36
crore were reserved for firm allotment to the Promoters, their friends,
relatives and associates. The promoters were to bring in the entire money
of Rs. 36 crores for subscription of 40,00,000 Equity Shares at least one
day before the opening of the subscription list. The Public Issue opened
on 26.3.1997, therefore, the promoters were required to bring the entire
contribution of Rs. 36 crore on or before 25.03.1997. As per SFIO report
the disclosure made in notes on accounts and Share Capital Schedule of
the Balance Sheet of M/s JVG Finance Limited (In Liquidation) as at
31.03.1997 shows that the company had received promoters contribution
of Share Application Money of Rs. 36 crore for allotment of Rs. 40,00,000
Equity Shares of Rs. 10/- each for cash at premium of Rs. 80/- each fully
paid up.
As per SFIO report they scrutinized the documents, bank
statements/vouchers received from Delhi and Pune Stock Exchanges,
Punjab & Sind Bank, Fort, Mumbai and Reserve Bank of India, New Delhi
to examine promoters contribution of Rs. 36 crore in Share Application
Money for allotment of JVG Finance Limited (In Liquidation) Equity
Shares. A certificate dated 21.03.1997 obtained by SFIO certified from Sh.
Praveen Kumar Sarin, Chartered Accountant of M/s Pee Dee Kapur &
Co., Chartered Accountants certifying that the promoters contribution of
Rs. 36 crores had been brought in by the promoters including their friends,
relatives and associates. Sh. Sarin also admitted the fact before SFIO on
19.11.2008 that the said certificate was issued on behalf of Pee Dee
Kapur & Co., Chartered Accountants. SFIO also obtained a letter issued
by M/s JVG Finance Limited (In Liquidation), under the signature of Sh.
Deepak Asija,Company Secretary, addressed to Lead Manager to the
Public Issue i.e., Prudential Capital Markets Limited confirming that the
promoters contribution of Rs. 36 crores in the public issue had been
brought by persons/corporate bodies. The names of each of the
persons/corporate bodies and the money contributed by each of them in
Share Application Money for allotment of Equity Shares of M/s JVG
Finance Limited (In Liquidation) and their bank account numbers in Punjab
& Sind Bank, Fort, Mumbai branch are tabulated as under:TABLE J
S. No.
Name
No. of
Shares
Amount
(Rs. In
crore)
Bank
Account
No.
Last balance
before
20.03.1997 (Rs.)
1.
Sh. V.K. Sharma
760000
6.84
Not
available
-
2.
M/s Sunder
Securities Pvt.Ltd
330000
2.97
5204
99195.15 (Credit
Balance)
3.
M/s Whiteways
Financial
Services Pvt. Ltd.
330000
2.97
5206
Bank Statement
not available
4.
M/s Milch Port
Folio Pvt. Ltd.
330000
2.97
5207
Bank Statement
not available
5.
M/s Narcissus
Financial Pvt. Ltd
330000
2.97
5208
33380.00 (credit
Balance)
6.
M/s Vista
Securities Pvt.
Ltd.
330000
2.97
5209
311763.00 (Credit
Balance)
7.
M/s Duleet
Securities Pvt.
330000
2.97
5211
27660.00 (Credit
Balance)
Ltd.
8.
M/s Sewak
Securities Pvt.
Ltd.
330000
2.97
5212
98552.50 (Credit
Balance)
9.
M/s Suryodaya
Securities Pvt Ltd
330000
2.97
5233
123144.00 (Credit
Balance)
10.
M/s JVG Foods
Ltd.
300000
2.70
5233
5000.00 (Credit
Balance)
11.
M/s JVG Farm
Fresh Ltd.
300000
2.70
5237
1000.00 (Credit
Balance)
4000000
36.00
TOTAL:
SFIO interrogated Sh. V.K. Sharma about his contribution of Rs. 6.84
crores but Sh. V.K. Sharma failed to give any proof of his investment of
Rs. 6.84 crores. SFIO in its report clearly found out that Sh. V.K. Sharma
has not made contribution of Rs. 6.84 crores in share Application Money
for allotment of Rs. 7.60 lakhs Equity shares in M/s JVG Finance Limited
(In Liquidation).
Further, investigation by SFIO divulge that how eight promoters
associates companies (Reference SL. No. 2 to 9 of Table J) made bogus
contribution of Rs. 23.76 crore in Share application Money for allotment of
Equity Shares of M/s JVG Finance Limited (In Liquidation) by way of
exchange of cheques inter-se by M/s JVG Finance Limited (In
Liquidation), M/s JVG Foods Limited and M/s JVG Farm Fresh Limited
and promoters eight associate companies on the same date on
20.03.1997 having their bank accounts in the same bank i.e. Punjab &
Sind Bank, Fort, Mumbai Branch.
The SFIO report also reveals the
manner in which banking transactions were done on the same day on
20.03.1997 which is enumerated as under:
1. M/s JVG Finance Limited (In Liquidation) received credit of
Rs. 24 crores by transfer of Rs. 3 crores each from the eight
promoters associate companies (SL. No. 2 to 9 of Table – J)
2. Out of eight promoters associate companies, four companies
(SL. No. 2, 5,7 and 9 of Table – J) received credit of Rs. 3
crores each (total Rs. 12 crores) by transfer of Rs. 12 crores
from M/s JVG farm Fresh Limited. Remaining four promoters
associate companies (SL. No. 3, 4, 6 and 8 of Table – J)
received credit of Rs. 3 crores each (Total Rs. 12 crores) by
transfer of Rs. 12 crores from M/s JVG Foods Limited.
3. M/s JVG Farm Fresh Limited and M/s JVG Foods received
credit of Rs. 12 crores each (total Rs. 24 crores) by transfer
of Rs. 24 crores from M/s JVG Finance Limited (In
Liquidation).
The SFIO has written letters to all the eight promoters associate
companies, mentioned at SL. No. 2 to 9 of Table-J, seeking
information relating to details of payments of Rs. 2.97 crore made by
each of them which form part of promoters contribution of Rs. 36 crore
towards Share application Money in M/s JVG Finance Limited (In
Liquidation) Public Isuue. But all the letters were received back from
Postal Department with the remarks “No firm in such address.” SFIO
also inquired the bank statement of M/s JVG Finance Limited (In
Liquidation) Bank Account No. 5203 which indicate that only Rs.
20,07,182.04 was in its credit prior to receipt of Rs. 24 crores from
promoters associate companies. The details given at Table – J
indicate that M/s JVG Foods Limited, JVG Farm Fresh Limited and
promoters associate companies were also having insignificant bank
balances prior to banking transactions of Rs. 24 crores among M/s
JVG Finance Limited (In Liquidation), JVG Group Companies and
promoters associate companies on 20.03.1997. Further, investigation
by SFIO in the matter revealed that as per copies of cheques and
bank deposit receipts obtained from Punjab & Sind Bank, Fort,
Mumbai branch, eight cheques valuing Rs. 3 crore each were issued
by eight promoter companies in favour of M/s JVG Finance Limited (In
Liquidation) and bank deposit receipts indicate the cheque numbers of
these companies resulted into transfer of Rs. 24 crore in M/s JVG
Finance Limited (In Liquidation) Bank Account No. 5203.
The SFIO in its report clearly established that eight promoters
associate companies (Reference SL. No. 2 to 9 of Table-J) made a
bogus contribution of Rs. 23.76 crore in Share Application Money for
allotment of Equity Shares of M/s JVG Finance Limited (In Liquidation)
by transfer of Rs. 24 crore on 20.03.1997 in M/s JVG Finance Limited
(In Liquidation) bank account no. 5203 through cheque of Rs. 3 crores
each issued by eight promoters associate companies, relating to
Share Application Money, which is a credit entry but without actual
inflow of cash.
The SFIO further in its report stated that after making false statement
in the prospectus that the promoters would contribute Rs. 36 crores in
the equity capital of the Company, all the directors of the Company
proceeded further and made bogus contribution of Rs. 36 crore
through rotation of cheques while no cash came in the bank account in
order to defraud the investors and shareholders to induce them to
subscribe to the shares of the Company. The Balance Sheet of the
Company for the year ended 31.03.1997 indicated that the promoters
contribution of Rs. 36 Crores had been received by way of Share
Application Money pending allotment in Public Issue. Sh. Deepak
Asija, Company Secretary confirmed to Prudential Capital Markets
Limited, Lead Manager to the Public Issue, by way of letter dated
21.03.1997 that the promoters contribution had been received in the
Company. The statutory auditor, Sh. D.K. Kapur was party to false
entries relating to bogus contribution of the promoters in the books of
the Company. The directors are liable for falsification of accounts year
ended 31.03.1997 along with the statutory auditor and the company
secretary under Section 477(1) of the Companies Act, 1956, read with
Section 120B of the Indian Penal Code. They deceived the investors
and fraudulently and dishonestly induced them to subscribe to the
shares of the company. They are also liable under section 420 of the
Indian Penal Code for the offence of cheating.
The following signatories to the Balance Sheet have rendered
themselves liable under section 628 of the Companies Act, 1956 also
for knowingly making false statement with regard to Promoters
contributions:i.
Sh. Vijay Kumar Sharma :
Chairman & M.D.
ii. Sh. T.S. Bhan:
Director
iii. Sh. B.P. Singh:
Director
iv. Sh. D.K. Kapur:
Statutory Auditor
v. Sh. Deepak Asija:
Company Secretary
27. That SFIO vide its report dated 11.02.2010 disclosed siphoning off funds
in the garb of purchase of shares of its own group company. Investigation
done by SFIO divulge that M/s JVG Finance Limited (In Liquidation) had
provided funds for the purchase of shares of its own Company as well as
the shares of its another Group Company i.e., M/s JVG Departmental
Stores Limited (In Liquidation) during the period Feb-March 1997 to
manipulate the prices/jack up the prices of its own shares when JVG
Finance Limited (In Liquidation) brought Public Issue of 50,00,000 equity
shares of Rs. 10/- each for cash at a premium of Rs. 80/- per share
aggregating to Rs. 45 Crore. As per SFIO report scrutiny of Current
Account No. 559 of M/s JVG Finance Limited (In Liquidation) with
Corporation Bank, Bhikaji Cama Place, New Delhi has revealed that
during the period Feb-March, 1997 substantial funds were first transferred
to the Current Account No. 1581 of M/s JVG Foods Limited maintained
with Corporation Bank, Bhikaji Cama Place, New Delhi and then to the
saving Bank Accounts of various relatives of Sh. Vijay Kumar Sharma, ExCMD maintained with Corporation Bank, Bhikaji Cama Place, New Delhi.
The details of some of these transactions are as follows:-
CHART-9
Transaction 1:M/s JVG Finance Ltd
(A/c No. 559 with
Corporation Bank)
transferred
Rs. 13.80 Lac on 12.3.97
Ch. No. 0129803to
M/s JVG Foods Ltd.
(A/c No. 1581)
transferred
Rs. 13.80 Lac
on 12.3.97 to
Vishal Sharma
(A/c No. 7038)
Rs. 13.80 Lac
Vide
P.O./Ch. No.
0134412
dated 12.3.97 to
M/s India Pacific
Securities & Financial
Services Ltd.
CHART-10
Transaction 2:M/s JVG Finance Ltd
(A/c No. 559 with
Corporation Bank)
transferred
Rs. 15.00 Lac on 13.3.97
Ch. No. 0129804 to
M/s JVG Foods Ltd.
(A/c No. 1581)
transferred
Rs. 15.00 Lac
on 13.3.97 to
Vishal Sharma
(A/c No. 7038)
transferred
Rs. 15.00 Lac
Vide
P.O./Ch. No. 0134413
dated 13.3.97 to
M/s India Pacific
Securities
CHART-11
Transaction 3:M/s JVG Finance Ltd
(A/c No. 559 with
Corporation Bank)
transferred
Rs. 5.00 Lac on 19.2.97
Ch. No. 0129547
Urmila Rani Sharma
(A/c No. 7040)
transferred
Rs. 5.00 Lac Vide
Ch. No. 01334423
on 15.2.97
Rakesh Kapur & Co.
CHART-12
Transaction 4:M/s JVG Finance Ltd.
(A/c No. 559 with
Corporation Bank)
transferred
Rs. 30 Lac on 19.2.97
Ch. no. 0129541
Rajni Sharma
A/c No. 7775
Rs. 5 Lac Vide
Ch. No. 006098
dated 19.2.97
Seema Rani
A/c No. 7041
Rs. 5 Lac Vide
Ch. No.
0131526
dated 19.2.97
M/s JVG Foods Ltd.
(A/c No. 1581)
Rs. 30 Lac t/f to six A/cs
of different individuals
on 19.2.97
Ritu Sharma
A/c No.
7043
5 Lac Vide
Ch. No.
0131
566 dated
19.2.97
Rajesh
Sharma
A/c No. 7767
Rs. 5 Lac
Vide
Ch. No.
0061982
dated 19.2.97
Meenakshi
Sharma
Rs. 5 Lac
(A/c
No. 7042)
vide
Ch. No.
0131546
dated
19.2.97
Urmila Rani
Sharma
A/c No.
7040
Rs. 5 Lac
vide
Ch. No.
0134424
dated
19.2.97
Meenakshi
Sharma
Rs. 6.2 Lac
(A/c
No. 7042)
vide
Ch. No.
0131548
dated
26.2.97
Urmila Rani
Sharma
A/c No.
7040
Rs. 4.2 Lac
(Rs.
2.19 Lac to
RK
& 1.5 Lac
to
Ruby Red)
Rakesh Kapur & Co.
CHART-13
Transaction 5:M/s JVG Finance Ltd.
(A/c No. 559 with
Corporation Bank)
transferred
Rs. 86 Lac on 26.2.97
Ch. no. 0129602
Rajni Sharma
A/c No. 7775
Rs. 8.3 Lac Vide
Ch. No. 006099
83 dated 26.2.97
Seema Rani
A/c No. 7041
Rs.6. 5 Lac
Vide
Ch. No.
0131527
dated 26.2.97
M/s JVG Foods Ltd.
(A/c No. 1581)
Rs.86 Lac t/f to seven
A/cs of diff. individuals
on 26.2.97
Ritu Sharma
A/c No.
7043
4.17 Lac
Vide
Ch. No.
0131
5733 dated
26.2.97
Rajesh
Sharma
A/c No. 7767
Rs. 7.84 Lac
Vide
Ch. No.
0061984
dated 26.2.97
Rakesh Kapur & Co.
Ruby Red Finance
& Investment Pvt.
Limited
CHART-14
Transaction 6:M/s JVG Finance Ltd.
(A/c No. 559 with
Corporation Bank)
transferred
Rs. 20 Lac on 21.2.1997
Ch. No. 0129574
M/s JVG Foods Ltd.
(A/c No. 1581)
Rs. 20 Lac t/f to two
A/cs
of different individuals
on 21.2.1997
Urmila Rani
Sharma
A/c No. 7040
Rs. 10 Lac (Rs. 5
Lac to Rk & 5
Lac
to JT & Co.
Meenakshi
Sharma
A/c No. 7042
Rs. 15 Lac vide
Ch. No. 0131548
dated 21.2.1997
Rakesh Kapur & Co.
CHART-15
Transaction 7:M/s JVG Finance Ltd.
(A/c No. 559 with
Corporation Bank)
transferred
Rs. 45 Lac on 11.3.97
vide Ch. No. 129802
Urmila Rani
(A/c No. 7040)
Rs. 4.5 Lac vide
Ch. No. 0134432
dated 12.3.97
M/s JVG Foods Ltd.
(A/c No. 1581)
Rs. 45 t/f on 11.3.97
and 12.3.97
Seema Rani
(A/c No. 7042)
Rs. 3 Lac vide
Ch. No. 0131551
dated 12.3.97
Meenakshi
Sharma
(A/c No. 7042)
Rs. 3 Lac vide
Ch. No. 0131551
dated 12.3.97
India Pacific Securities & Financial Services
Limited
Rajni Sharma
(A/c No. 7775)
Rs. 19.50 Lac t/f
vide Ch. No
0060988
dated 11.3.97.
CHART-16
Transaction 8:M/s JVG Finance Ltd.
(A/c No. 559 with
Corporation Bank)
transferred
Rs. 35 Lac on 17.3.97
Ch. No. 0129803
M/s JVG Foods Ltd.
(A/c No. 1581)
Rs. 35 Lac (14 Lac to Prize
Securities, 20 Lac to Vishal
Sharma) on 13.3.97
Vishal Sharma
(A/c No. 7038)
Rs. 20 Lac (10 Lac on
17.3.97 and 10 Lac on
18.3.97)
Prize Securities Pvt. Ltd.
Rs. 14 Lac
India Pacific
Securities
& Financial Services
Limited
CHART-17
Transaction 9:M/s JVG Finance Ltd.
(A/c No. 559 with
Corporation Bank)
Rs. 92 Lac on 20.3.97 vide
Ch. No. 0129849
Rajni Sharma
(A/c No. 7775)
Rs. 46.25 Lac
vide Ch. No.
0060989
dated 20.3.97
M/s JVG Foods
(A/c No. 1581)
Rs. 92 Lac t/f to six A/cs of
different individuals on
20.3.97
Seema Rani
Ritu Sharma
Vishal Sharma
(A/c No.
(A/c
(A/c No. 7038)
7041)
No.7043)
Rs. 21,000
Rs. 15.62
Rs. 11 Lac
Lac
vide Ch. No.
vide Ch. No.
0131570
0131532
dated 20.3.97
dated 20.3.97
India Pacific Securities & Financial Services
Limited.
Meenakshi
Sharma Rs.
16.80 Lac
vide
Ch. No.
0131
554 dated
20.3.97
Urmila Rani
Sharma
(A/c No.
7040)
Rs. 2.02 Lac
vide
Ch. No.
0134433
dated 20.3.97
CHART-18
Transaction 10:M/s JVG Finance Ltd.
(A/s No. 559 with
Corporation Bank)
Rs. 85 Lac on 29.3.97
vide Ch. No. 0129852 &
0129853
M/s JVG Foods Ltd.
(A/c No. 1581)
Rs. 55.75 Lac t/f to Rajesh
Sharma & 2.23 Lac to
Vishal Sharma
on 29.3.1997
Rajesh Sharma
Rs. 55.75 Lac
on 29.3.97
Vishal Sharma
(A/c No. 7038)
Rs. 2.23 Lac on 29.3.97)
India Pacific Securities &
Financial Services Limited
CHART-19
Transaction 11:M/s JVG Finance Ltd.
(A/c No. 559 with
Corporation Bank)
Rs. 55 Lac on 3.3.97
vide Ch. No. 129210
Rajni Sharma
(A/c No. 7775)
Rs. 55 Lac vide Ch. No.
0060986 dated
3.3.97
India Pacific Securities &
Financial Services Ltd.
The above charts show how the fund were transferred by M/s JVG
Finance Limited (In Liquidation) to the relatives of Sh. V.K. Sharma,
Ex-CMD, JVG Group of Companies (In Liquidation). SFIO found
during examination of bank accounts of Sh. Vishal Sharma, Mrs. Ritu
Sharma, Mrs. Rajni Sharma, Mrs. Seema Datta, Mrs. Urmila Rani
Sharma, Mrs. Meenakshi Sharma and Mr. Rajesh Sharma, who were
relatives of Sh. Vijay Kumar Sharma of M/s JVG Finance Limited (In
Liquidation) maintained with Corporation Bank, Bhikaji Cama Place,
New Delhi, it is gathered that huge amounts were received in the said
A/cs which were immediately transferred to various share brokers viz.,
M/s India Pacific Securities Pvt. Ltd., M/s Ruby Red Finance and
Investment Pvt. Ltd. and M/s Rakesh Kapur and Co. as illustrated in
the above charts.
27.1) That SFIO also inquired with Share Brokers and summons were
also issued to M/s India Pacific Securities Pvt. Ltd., M/s Ruby Red
Finance and Investment Pvt. Ltd. and M/s Rakesh Kapur and Co. SFIO
also recorded statement of Sh. Vinay Kumar, Director of M/s India
Pacific Securities and Financial Services Ltd. Sh. Vinay Kumar during
recording of his statement before SFIO revealed that they had done
trading of shares with M/s JVG Finance (In Liquidation) and M/s JVG
Departmental Stores Limited (In Liquidation) and other JVG Group
companies. He added that Sh. D.K. Kapur, director of JVG Group used
to place orders for buying and selling of shares of JVG Group of
Companies in the names and on behalf of various entities whose
statements of accounts were submitted. Sh. Vinay Kumar told SFIO
that all these client companies were introduced by Sh. D.K.
Kapur. SFIO showed statements of different persons maintained with
Corporation Bank, Bhikaji Cama Place, New Delhi as from these
accounts various payments were received by his Company M/s India
Pacific Securities & Financial Services Ltd. during the period January
to March, 1997. Sh. Vinay confirmed that these payments were
received in the running account of Mr. Rajesh, M/s Vishal Investments,
M/s Raj Investments, M/s Meena Investments, M/s Ritu Investments
and M/s Urmila Investments for the purchase of shares of M/s JVG
Departmental Stores Limited (in Liquidation) on different occasions.
Sh. Vinay Kumar also revealed before SFIO that in the year 1996-97
equity shares of M/s JVG Departmental stores Ltd. numbering 737800
worth Rs. 8,52,31,959 were purchased by various persons, who were
either introduced by Mr. D.K. Kapur or were related to Mr. Kapur.
Similarly during the year 1997-98 equity shares of M/s JVG
Departmental Stores Limited (In Liquidation) were sold/purchased
numbering 53500/93100 worth Rs. 3881284/Rs. 9269748/- by the
aforesaid entities i.e., D.K. Kapur group. Sh. Vinay Kumar also
emphasized that there was a price rise in the scrip of M/s JVG
Departmental Stores Limited (In Liquidation) during that period due to
purchase/manipulation of shares by Sh. D.K. Kapur and his
associates. He also stated that Sh. D.K. Kapur also approached other
directors of M/s India Pacific Securities & Financial Services Limited
viz., Mr. Sanjay Saigal,, S/o Virendar Saigal and Mrs. Shashi Saigal,
and Mr. S.K. Kalia for purchase of shares of M/s JVG Departmental
Stores Limited (in Liquidation).
27.2) That SFIO also inquired from Smt. Shashi Saigal and Sh. Sanjay
Saigal, directors of M/s Ruby Red Finance and Investment Pvt. Ltd.
SFIO recorded the statement of both the directors and they revealed
that Mr. D.K. Kapur in the capacity of representing India Pacific
Securities & Financial Services Ltd., the company which is owned by
his family along with Mr. S.K. Kalia, director of the company wanted to
buy and sell scrip of M/s JVG Departmental Stores Limited (In
Liquidation) and M/s JVG Finance Limited (In Liquidation). Sh. Sanjay
Saigal stated that during the period February 1997 to March 1997 as
per their records the total buying done by Mr. D.K. Kapur and his
associates introduced by him , was approx. 8 Lac shares of M/s JVG
Departmental stores Limited (In Liquidation) and M/s JVG Finance
Limited (In liquidation) valued around Rs. 8 crore (approx.) and as a
result price of the scrip had gone up.
27.3) SFIO also recorded statement of Sh. Rakesh Kapur, proprietor of
M/s Rakesh Kapur & Co. and according to bank statements of M/s
Rakesh Kapur & Co. , they had received various payments from
Meenakshi Sharma, Ritu Sharma, Rajesh, Urmila Rani Sharma and
Vishal Sharma. SFIO in its report stated that during February 1997 M/s
Rakesh Kapur & Co. had purchased large No. of Shares of M/s JVG
Departmental Stores Limited (In liquidation) for its clients or on of
behalf of its clients, who were none other than different relatives of Sh.
V. K. Sharma. As per SFIO report payment to the tune of Rs. 1 crore
was received by M/s Rakesh Kapur & Co.
27.4) That as per SFIO report statement of various relatives of Sh. V.K.
Sharma such as Mrs. Seema Dutta, Vishal Sharma and Mr. Rajesh
were also recorded, wherein, they, inter alia, stated that they used to
sign the documents on the instructions of Sh. V.K. Sharma which were
sent by D.K. Kapur and they were not aware of the transactions held
on their behalf. SFIO also recorded statement of Sh. V. K. Sharma in
this regard on 10.11.2008 wherein, he, inter alia, stated that he was
not aware of such transactions and Sh. D.K. Kapur, Executive Director
(Finance) of the company could only explain these transactions. SFIO
also recorded statement of Sh. D.K. Kapur on 27.11.2008 wherein, he,
inter alia, stated that he did not remember anything about these
transactions with M/s Rakesh Kapur & Co., M/s Indo Pacific Securities
and M/s Ruby Red Investments regarding purchase of shares.
SFIO also issued notice to other directors such as Sh. T.S. Bhan and
Sh. B.P. Singh which couldn't be served due to non traceability of the
said persons. SFIO also issued a public notice in this regard in leading
newspapers dated 13.12.2008 but of no avail.
27.5) That SFIO in its report clearly established that huge sums of
money were received from the firms such as Meena Investments, Raj
Investment, Rajesh Sharma, Rani Securities, Ritu Investments, Urmila
Investments, Vishal Investments and other shell companies such as
M/s Duleet Securities Pvt. Ltd., M/s Narcissus Financial Services Pvt.
Ltd., M/s Prize Securities Pvt. Ltd., M/s Sarvodya Securities Pvt. Ltd.,
M/s Vista Securities Pvt. Ltd., M/s Whiteways Financial Services Pvt.
Ltd., and M/s Milch Portfolio Pvt. Ltd., for purchase of huge number of
shares of M/s JVG departmental Stores Limited (In Liquidation). As per
SFIO report the following payments received from above relatives/
entities by the share brokers during 1996-97 are as follows:
TABLE K
SL. No.
Names of relatives/entities of Sh.
Sharma,Ex-CMD, JVGFL (In Liquidation)
V.K. Amount paid to
Broker (Rs.)
1.
M/s Meena Investments (Prop. Meenakshi 1,14,68,529.95
Sharma, Sister-in-law of Sh. V.K. Sharma)
2.
M/s Raj Investment (Prop. Rajni Sharma, Sister- 1,68,21,729.20
in-law of Sh. V.K. Sharma)
3.
Rajesh Sharma (Brother-in-law of Sh. V.K. 1,25,73,558.80
Sharma)
4.
M/s Rani Securities (Prop. Seema Rani, Sister-in- 60,74,256.80
law of Sh. V.K. Sharma)
5.
M/s Ritu Investments (Prop. Ritu Sharma, Sister- 22,48,968.80
in-law of Sh. V.K. Sharma)
6.
M/s Urmila Investments (Prop. Urmila Rani 19,09,568.40
Sharma, Mother-in-law of Sh. V.K. Sharma)
7.
M/s Vishal Investments (Prop. Vishal Sharma, 51,23,255.90
Brother-in-law of Sh. V.K. Sharma)
8.
M/s Duleet Securities Pvt. Ltd.
19,28,040.00
9.
M/s Naracissus Financial Services Pvt. Ltd.
16,63,558.00
10.
M/s Prize Securities Pvt. Ltd.
12,79,360.00
11.
M/s Sarvodya Securities Pvt. Ltd.
1,45,28,033.75
12.
M/s Sewak Securities Pvt. Ltd.
23,38,351.05
13.
M/s Vista Securities Pvt. Ltd.
49,58,758.45
14.
M/s Sunder securities Pvt. Ltd.
9,82,764.00
15.
M/s Whiteways Financial Services Pvt. Ltd.
17,93,344.00
16.
M/s Milch Portfolio Pvt. Ltd.
17,70,675.10
27.6) That SFIO in its report clearly established that the funds of M/s
JVG Finance Limited (In liquidation) were firstly transferred to M/s JVG
Foods Limited, another group company and then to personal accounts
of various relatives. As per SFIO report these funds were utilized for
purchase of shares of M/s JVG Departmental Stores Limited (in
Liquidation) in the names of different firms of the said relatives and
shell companies launched for the purpose. SFIO report also state that
bank accounts of different relatives did not show the inflow of funds
regarding the sale of said shares or any refund of money to M/s JVG
Finance Limited (In Liquidation), which establishes siphoning of funds
of M/s JVG Finance Limited (In Liquidation). The rotation of funds in
different accounts of the company and then to accounts of different
relatives proves the dishonest intention of Sh. V.K. Sharma, Sh. D.K.
Kapur of M/s JVG Finance Limited (In Liquidation) and also of the said
relatives, to siphon off the funds of the company and ultimately use the
same for their personal benefits. As per SFIO report Sh. D.K. Kapur
has been signing various documents of M/s JVG Finance Limited (In
Liquidation) and its group companies as Executive Director (Finance),
a fact which has been confirmed not only by Sh. V.K. Sharma but also
by several other persons who were summoned by the Inspector for the
purpose of investigation. Sh. D.K. Kapur was also one of the
authorized signatories for Current Account No. 559 maintained with
Corporation Bank, Bhikaji Cama Place, New Delhi (from which the
funds were siphoned off) and was having signing authority up to any
limit. SFIO also mentions that Sh. D.K. Kapur was the brain behind the
formation/acquisition and operation of different front companies as
mentioned in Table K above and was also acting as authorized
signatory for the different bank accounts of the said front companies as
well and the Balance Sheet of M/s JVG Finance Limited as at
31.03.1997 has been audited and signed by Sh. D.K. Kapur as its
Statutory Auditor . As per SFIO report Sh. V.K. Sharma also enjoyed
unlimited signing authority for the said account.
One more fact
divulged by SFIO in its report that following relatives of Sh. V.K.
Sharma were the directors in front companies:
TABLE L :
SL. No.
Name of the Company
Name of Directors (Relation with Sh.
V.K. Sharma)
1.
M/s Naracissus Financial 1. Sh. Vishal Sharma (Brother-in-law)
Services Pvt. Ltd.
2. Smt. Seema Rani (Sister-in-law)
2.
M/s Duleet Securities Pvt. 1. Smt. Meenakshi Sharma (Sister-in-law)
Ltd.
2. Sh. Satinder Dutta (Brother-in-law)
27.7) That SFIO clearly establishes that funds totaling around Rs. 9.50
crores have been siphoned off from the bank account of M/s JVG
Finance Limited (In Liquidation) to purchase the shares of M/s JVG
Departmental Stores Limited (In Limited). Hence, Sh. Vijay Kumar
Sharma, along with his various relatives namely, Meenakshi Sharma,
Vishal Sharma, Ritu Sharma, Urmila Rani Sharma, Rajesh Sharma,
Rajni Sharma etc. who were also directors of the front companies and
Sh. D.K. Kapur had conspired to siphon off the funds of M/s JVG
Finance Limited (In Liquidation) in the garb of purchase of shares of
M/s JVG Departmental Stores Limited (In Liquidation) from the funds
of M/s JVG Finance Limited (In Liquidation).
Accordingly, they are liable to be prosecuted for offences under
Sections 405,406,409,418 and 420 read with section 120B of
Indian
Penal Code. They are also liable for punishment under Section 538,
540, 542 and 543 of the Companies Act, 1956.
The copy of relevant documents collected by SFIO to establish the
above alleged transactions are enclosed and marked as Annexure “O” (Colly) to this application for kind perusal of the Hon'ble Court.
28. That the SFIO vide its report dated 11.02.2010 revealed siphoning off JVG
Finance Limited (In Liquidation) funds by Sh. V.K. Sharma, Ex-CMD, JVG
Group of Companies (In Liquidation), through purchase of shares of M/s
JVG Departmental Stores Limited (In Liquidation) and falsification of
Balance Sheet of M/s JVG Finance Limited (In Liquidation) as at
31.3.1996. As per SFIO report during the investigation the records were
obtained relating to M/s JVG Finance Limited (In Liquidation), M/s JVG
Departmental Stores Limited (In Liquidation) and M/s JVG Leasing Limited
(In Liquidation) from Official Liquidator Delhi, Income Tax Department,
Bombay Stock Exchange Limited (BSE), Reserve Bank of India, New
Delhi and Sh. D.K. Kapur, Statutory Auditor of the JVG Group Companies.
28.1) That SFIO in its report further disclosed that as per list of M/s
JVG Departmental Stores Limited (In Liquidation) shareholdings upto
31.03.1996, the company had issued 55,87,500 shares. The Share
Capital Schedule of the Balance Sheet of M/s JVG Departmental
Stores Limited (In Liquidation) as at 31.03.1996 also indicates that the
company's Paid up Capital comprised of 55,87,500 Equity Shares of
Rs. 10/- each. SFIO examined the list of shareholders of M/s JVG
Departmental Stores Limited (In Liquidation) and observed that M/s
JVG Leasing Limited (In Liquidation) was holding 2,74,500 shares of
M/s JVG Departmental Stores Limited (In Liquidation), as on
31.03.1996, having Distinctive Numbers 199201 to 203200 (4,000
shares), 204201 to 209200 (5,000 shares), 229201 to 284700 (55,500
shares) and 386401 to 596400 (2,10,000 shares). SFIO report
divulged that Assessment Order dated 29.03.2005 of Income Tax
Department relating to the Assessment Year 1995-96 of Sh. V.K.
Sharma, he had made an investment of Rs. 3,39,66,000/- in 33,96,600
shares, mentioned at Table – M in the succeeding para, are also
reflected in the list of M/s JVG Departmental Stores Limited (In
Liquidation) shareholdings upto 31.03.1996. As per SFIO report M/s
JVG Finance Limited (In Liquidation) held 50,000 shares of M/s JVG
Departmental Stores Limited (In Liquidation) as on 31.03.1996. SFIO
further in the report stated that as per the disclosure made in the
prospectus dated 30.01.1997 of M/s JVG Finance Limited (In
Liquidation) Public Issue that M/s JVG Departmental Stores Limited (In
Liquidation) paid 1,00,000/- dividend @20% for the year 1995-96 to
M/s JVG Finance Limited (In Liquidation) for 50,000 shares.
28.2)
As per SFIO report Sh. V.K. Sharma made declaration on
28.04.1995 under section 187C(1) of the companies Act, 1956 through
several Form No. 1 M/s JVG Departmental Stores Limited (In
Liquidation) about allotment of 36,76,100 equity shares of M/s JVG
Departmental Stores Limited (In Liquidation) (distinctive Numbers
1247001 to 4923100) to him.
28.3) That SFIO in the said report mentions that in the Income Tax
Department Assessment Order dated 29.03.2005 for the Assessment
Year 1995-96 relating to Sh. V.K. Sharma, he had made an investment
of Rs. 3,39,66,000 in 33,96,600 equity shares of M/s JVG
Departmental Stores Limited (In Liquidation), the details of which are
enumerated as below:
TABLE M
SL. No.
Distinctive No.
No. of Shares
1.
878201-883200
5,000
2.
883701-894700
11,000
3.
895701-899700
4,000
4.
1546501-4923100
33,76,600
The details given at Table M above indicate that Sh. V.K. Sharma's
investment in 33,96,600 shares of M/s JVG Departmental Stores
Limited (In Liquidation) during the year 1994-95, does not include
2,99,500 equity shares of M/s JVG Departmental Stores Limited (In
Liquidation) bearing Distinctive Nos. 1247001 to 1546500. These
2,99,500 equity shares, which form part of 36,76,100 equity shares (
Distinctive Nos. 1247001 to 4923100) were allotted to him on
01.03.1995 i.e. in the year 1994-95. As per SFIO report these 2,99,500
shares of
M/s JVG Departmental Stores Limited (In Liquidation)
(Distinctive Nos. 1247001 to 1546500) were allotted to Sh. V. K.
Sharma in the Year 1994-95 but his investment in M/s JVG
Departmental Stores Limited (In Liquidation) shares during the year
1994-95 does not include these 2,99,500 shares, which indicate that
he had sold these 2,99,500 shares or transferred them to M/s JVG
Finance Limited (In Liquidation).
28.4) That SFIO vide their above investigation clearly held that
2,99,500 shares (Distinctive Nos. 1247001 to 1546500) allotted to Sh.
V.K. Sharma in the year 1994-95 were neither transferred to M/s JVG
Finance Limited (in liquidation) till 31.03.1995 nor reflected in the
investment made4 by Sh. V.K. Sharma in the year 1994-95 (details
given in Table M). Therefore it is apparent that Sh. V.K. Sharma sold
2,99,500 shares of M/s JVG Departmental Stores Limited (In
Liquidation) on or before 31.03.1995. Pursuant to the above it is
evident that Sh. V.K. Sharma siphoned off Rs. 29.95 Lakhs of M/s JVG
Finance Limited (In Liquidation) by selling 2,99,500 shares of M/s JVG
Departmental Stores Limited (In Liquidation) (Distinctive Nos. 1247001
to 1546500) out of 36,76,100 shares (Distinctive Nos. 1247001 to
4923100) purchased with the funds of M/s JVG Finance Limited (In
Liquidation).
28.5) That SFIO in the said report also disclosed that in the prospectus
dated 30.01.1997 of M/s JVG Finance Limited Public Issue of March,
1997, M/s JVG Departmental Stores Limited (In Liquidation) paid a
dividend of 20% on pro-rata basis, for the years ending 31.03.1995
and 31.05.1996. The amount of dividend taken by Sh. V.K. Sharma is
enumerated as under:
TABLE N
SL.
No.
Year Ending
Amount of Dividend
(Rs.)
Remarks
1.
31.03.1995
5,62,760.00
As per details mentioned in M/s
JVG Departmental Stores Limited
(In Liquidation), Public Issue, the
company had allotted 40,93,900
shares in all on 01.03.1995 i.e. in
the year 1994-95 which obviously
include 33,76,600 shares retained
by Sh. V.K. Sharma since they
were also allotted to him on
01.03.1995. The Balance Sheet of
M/s JVG Departmental Stores
Limited (In Liquidation) as at
31.03.1995 indicates Paid up
Capital at the beginning i.e.
01.04.1994 was Rs. 82,92,000/comprising 8,29,200 equity shares
of Rs. 10/- each and 40,93,900
equity shares were allotted during
the year 1994-95. The Profit & Loss
Account of M/s JVG Departmental
Stores Limited (In Liquidation) for
the year ending 31.03.1995 shows
that the company had paid dividend
of Rs. 23,40,717/- for the year. M/s
JVG Departmental stores Limited
(In Liquidation) had paid dividend of
20% for the year 1994-95.
Therefore, remaining dividend of
Rs. 6,82,317 (Rs. 23,40,717 16,58,400) was paid on 40,93,900
shares on pro-rata basis. Dividend
on 33,76,600 shares retained by
Sh.
V.K.
Sharma
shares
proportionately works out to Rs.
5,62,767/-.
2.
31.03.1996
67,53,200.00
M/s JVG Departmental Stores
Limited (In Liquidation) declared
and paid dividend of 20% in the
year ending 31.03.1996. Since,
33,76,600 shares were retained by
Sh. V.K. Sharma for the full year,
therefore, dividend on 33,76,600
shares of Rs. 10/- each comes to
Rs. 67,53,200/-.
TOTAL :
73,15,967.00 (Rs.
73.16 Lakhs)
That pursuant to the above it is clear that Sh. V.K. Sharma siphoned
off Rs. 73.16 lakhs as given in Table N relating to dividend of two years
ending on 31.03.1995 and 31.03.1996 on 33,76,600 shares of M/s
JVG Departmental Stores Limited (In Liquidation) held by him.
That Sh. V.K. Sharma, Ex-CMD, JVG Group of Companies (In
Liquidation) is liable for prosecution under section 405, 409,410, 411,
415, 418 & 420 of the Indian Penal Code, 1860 and Section 538, 539,
540, 542, 543 & 628 of the Companies Act, 1956.
The copy of relevant documents collected by SFIO during the investigation
of above alleged transaction are enclosed and marked as Annexure - “P”
to this application for kind perusal of the Hon'ble Court.
29. That SFIO in its report dated 11.02.2010 disclosed that on examination of
records obtained from Reserve Bank of India revealed that M/s JVG
Finance Limited (In Liquidation) had made payments of Rs. 2.25 crore
through various Cheques/Demand Drafts to Sr. Post Master, Parliament
Street, New Delhi and Post Master, Meerut City for purchase of Indira
Vikas Patra (IVP) during the year 1997-98. The details of payment made
to Post Masters of New Delhi and Meerut City and Distinctive Nos. of IVPs
issued by them against the payments made by M/s JVG Finance Limited
(In Liquidation) are tabulated below:
TABLE O
SL.
No.
Details of Payment
Distinctive No. of IVPs
issued
1.
Demand Draft No. 252043/38/97 and 25090/39/97 of Rs. 58C-035401 To 58C-037400
50 Lakh each of Vijaya Bank, New Delhi-110066
favouring Post Master, Meerut City
2.
Cheque No. 105891 dated 29.4.1997 for Rs. 50 Lakh 49C-239427 To 49C-241426
favouring Senior Post Master, Parliament Street, New
delhi was issued by M/s JVG Finance Limited (In
Liquidation) through its Bank Account No. 2102 of Vijaya
Bank, Bhikaji Cama Place, New Delhi
3.
Pay Order No. 063287 dated 26.05.1997 of Rs, 75 Lakh 49C-366187 To 49C-369186
favouring Sr. Post Master, Parliament Street Post Office,
New Delhi
29.1) That SFIO in its report further stated that Indira Vikas Patra
encashed through cheque were selected for investigation and letters
were issued to the payees who received maturity amount of IVPs
through Cheques. The investigation revealed that all the IVPs
encashed by each of the payees were given by M/s Hoffland Finance
Limited (In Liquidation) and M/s Hoffland Agro as a security for
deposits made in these companies. On examination of receipts issued
by M/s Hoffland Finance Limited (In Liquidation) it is noticed that some
of the receipts indicate the same address and have been certified as
True Copy by Sh. B.R. Bhatia. SFIO also questioned Sh. B.R. Bhatia
who in his reply said that in lieu of investment made by me and my
family members in Hoffland Group Company they (company) gave me
Indira Vikas Patra in July/August, 1997. Sh. B.R. Bhatia and his
daughter Ms. Supriya Bhatia furnished inter-alia, the details of 20 IVPs
bearing Distictive No. 58C-037301 to 58C-037320 handed over by M/s
Hoffland Finance Limited (In Liquidation) for deposits made in that
company by the family members. The Distinctive Nos. these 20 IVPs
are matching with those of the IVPs issued by Post Master, Meerut
City as mentioned in Table- O. As per the SFIO report more than 800
paid vouchers of IVPs encashed amounting to Rs. 42.10 lakh.
29.2) That SFIO in the report makes it clear that the IVPs which M/s
Hoffland Finance Limited (In Liquidation) and M/s Hoffland Agro
handed over to the public, against deposits taken from them, were
purchased by M/s JVG Finance Limited (In Liquidation). SFIO in its
report further stated that, as per documents received from Securities
and Exchange Board of India, Sh. B.B. Sharma, Chairman of Hoffland
Group of Companies is the elder brother of Sh. Vijay Kumar Sharma,
Ex-Chairman & managing Director of M/s JVG Finance Limited (In
Liquidation).
29.3) That SFIO in its report stated that the Balance Sheet of M/s JVG
Finance Limited (In liquidation) for the year ending 31.03.1997
indicates that the company was having huge liabilities to the tune of
Rs. 338.71 crore and Margin Money/Security Deposit of Rs. 51.45
crore taken from public. As per SFIO report Board of Directors Meeting
of M/s JVG Finance Limited (In Liquidation) held on 09.06.1997, that
company was not accepting any fresh deposit account including
Margin Money Deposit Account since January, 1997. As the company
financial position was not good and it had defaulted in making payment
to its depositors. Instead of giving money to its own depositors, M/s
JVG Finance Limited (In Liquidation) passed on IVPs to its elder
brother company viz., M/s Hoffland Finance Limited (In liquidation) and
M/s Hoffland Agro who in turn collected money from the public against
the IVPs. SFIO also interrogated Sh. V.K. Sharma on IVPs issue but
he did not gave any satisfactory answer but said that Sh. D.K. Kapur,
Statutory Auditor/Executive Director (Finance) of JVG Finance Ltd can
give information on this issue. SFIO also interrogated SH. D.K. Kapur,
Statutory Auditor/Executive Director (Finance) of JVG Finance Ltd who
stated that “the statement of Sh. V.K. Sharma, Ex-Chairman, JVG
Group is patently incorrect, wrong and denied. I have no knowledge of
purported Indira Vikas Patra and unable to comment on the same.”
29.4) That the purported misappropriation of funds by the management
of M/s JVG Finance Limited (In Liquidation) through Indira Vikas Patra
is explained in the following chart:
CHART-20
JVG Finance Ltd. (In Liqn.)
purchased IVPs vide D.D.
No. 252043/38/97 &
252090/39/97 each of
Vijaya Bank, N.D for 50 lac
favouring Post Master,
Meerut
City (U.P.)
Distinctive No.s From
58C – 035401 To
58C-037400
JVG Finance Ltd. (In
Liqn.)
purchased IVPs vide Ch.
No
105891 dt. 29.4.97 for Rs.
50 Lac, favouring Senior
Post Master, Parliament
Street. N.D. Through its
Bank A/c No. 2102, Vijaya
Bank, Bhikaji Cama Place
New Delhi.
M/s JVG Finance Ltd. (In
Liqn.)
purchased IVPs vide Pay
Order
No. 063287 dt. 26.5.97
of Rs. 75 Lakh favouring
Sr. Post Master, Parliament
Street Post Office, New
Delhi.
Distinctive Nos. From
49C-239427 To
49C-241426
Distinctive Nos. From
49C-366187 To
49C- 369186
M/s JVG Finance Limited (In Liq.) sold the IVPs to
M/s Hoffland Finance Ltd. (In Liq.) & M/s
Hoffland
Agro (It is notewrorthy that Sh. B.B. Sharma,
Chairman, Hoffland Group is elder brother of
Sh. V.K. Sharma, Ex-Chairman, JVG Group of
Companies in Liq.) inspite of prohibitory orders of
RBI dated 11.7.97.
M/s Hoffland Finance Ltd. (In Liq.) & M/s Hoffland
Agro given these IVPs to its depositors in lieu of
their deposit in M/s Hoffland Finance Ltd. (In Liq.)
&
M/s Hoffland Agro.
That Sh. V. K. Sharma, Ex-Chairman JVG Group of Companies (In
Liquidation) is liable for prosecution under section 409, 405, 418 and
420 of Indian Penal Code, 1860 and Section 538, 539, 540, 542 and
543 of the Companies Act, 1956.
The copy of relevant documents collected by SFIO during their
investigation to establish the above transaction with regard to Indira Vikas
Patra are enclosed and marked as Annexure - “Q” (Colly) to this
application for kind perusal of the Hon'ble Court.
30. That SFIO vide its report dated 11.02.2010 disclosed siphoning of funds
through purchase of jewellery. Investigation by SFIO revealed that M/s
JVG Finance Limited (In Liquidation) had issued following cheques from
its Account No. 559 with Corporation bank, Bhikaji Cama Place, New
Delhi to M/s Tribhuvandas Bhimji Zaveri & M/s Mehrasons Jewellers, New
Delhi, which are enumerated as under:
TABLE : P
M/s Tribhuvandas Bhimji Zaveri, New Delhi
SL No.
Cheque No.
Amount (Rs.)
Date
1.
114303
10 Lac
30.10.1996
2.
114304
10Lac
29.10.1996
3.
114781
5 Lac
06.11.1996
4.
114809
5 Lac
08.11.1996
5.
129120
10 Lac
11.12.1996
6.
129860
5 Lac
12.04.1997
TOTAL :
45 Lac
TABLE : Q
M/s Mehrasons Jewellers, New Delhi
SL. No.
Cheque No.
Amount (Rs.)
Date
1.
114772
10 Lac
04.11.1996
2.
114773
5 Lac
04.11.1996
3.
114946
10 Lac
16.11.1996
TOTAL :
25 Lac
30.1) That SFIO in the said report also disclosed that Rs. 2 Lac was
transferred from Current A/c bearing No. 559 dated 12.03.1996 of M/s
JVG Finance Limited (In Liquidation) to the SB account bearing No.
7044 with Corporation Bank, Bhikaji Cama Place, New Delhi of Smt.
Veena Sharma (w/o Sh. V.K. Sharma). SFIO report further revealed
that a cheque bearing No. 131599 dated 12.03.1996 of Rs. 2 Lac was
issued from Smt. Veena Sharma, SB account bearing No. 7044 with
Corporation Bank, Bhikaji Cama Place, New Delhi , favouring M/s
Mehrasons Jewellers and copy of Cash Memo No. 5561 dated
10.03.1996 received from M/s Mehrasons Jewellers, New Delhi
depicts that Smt. Veena Sharma had issued these funds for purchase
of jewellery comprising of one diamond set and four diamond bangles.
30.2) That SFIO in the said report also disclosed that Sh. V.K.
Sharma had also issued cheques bearings No. 0003545 dated
16.03.1996 for amount of Rs. 2,00,000 and Ch. No. 0003546 dated
08.04.1996 for amount of Rs. 2,00,000 to M/s Mehrasons Jewellers,
New Delhi for purchase of diamond ornaments for his wife Smt. Veena
Sharma and for himself from his SB A/c No. 5465 maintained with
Corporation Bank, Bhikaji Cama Place, New Delhi. SFIO investigated
the said matter and observed that Sh. V.K. Sharma had received the
aforesaid amounts on 16.03.1996 and 08.04.1996 from Current A/c
No. 559 of M/s JVG Finance Limited (In Liquidation) maintained with
Corporation Bank, Bhikaji Cama Place, New Delhi.
30.3) That SFIO in its report stated that Sh. D.K. Kapur, Statutory
Auditor of the aforesaid companies, (who is also stated to have been
working
as
Executive,
Director,
Finance)
submitted
annual
accounts/working papers relating to audit of Company's accounts for
the year 1995-96 and 1996-97. In the said accounts a sum of Rs.
3,20,52,430 was shown as advance in the name of Smt. Veena
Sharma, w/o Sh. V.K. Sharma, Ex-CMD, as on 31.03.1997.
30.4) That pursuant to the above it is clear that the funds from bank
account of M/s JVG Finance Limited (in Liquidation) have firstly flown
to the savings bank accounts of Sh. V.K. Sharma and his wife, Smt.
Veena Sharma and thereafter the same have been used for the
purchase of jewellary and knowingly has not disclosed the above facts
to the Hon'ble High Court of Delhi and Official Liquidator, Delhi.
30.5) That Sh. V.K. Sharma is liable to be prosecuted under sections
538, 539, 540, 542 and 543 of the Companies Act, 1956 and also
under section 405, 406, 490, 410, 411, 418, 420 and 120B of the
Indian Penal Code, 1860.
30.6)
That the purported misappropriation of funds by the
management of M/s JVG Finance Limited (In Liquidation) through
purchase of jewelery explained in the following charts:
CHART-21
TRANSACTION : 1
M/s JVG Finance Ltd. (In Liq.) issued cheques
from its CA No. 559, Corporation Bank,
Bhikaji
Cama Place, N.D. To M/s Tribhuvandas
Jewellers,New Delhi For purchase
of jewellary.
Ch. No. 114303
dated 30.10.96
for Rs. 10 Lac
Ch. No.
114304
dt. 29.10.96
for Rs. 10
Lac
Ch. No.
114781
dt.6.11.96
for Rs. 5 Lac
Ch. No.
114809
dt. 8.11.96
for Rs. 5 Lac
Ch. No.
129120
dt. 11.12.96
for Rs. 10 Lac
Ch. No.
129863
dt. 12.4.96
for Rs. 5 Lac
Total 45 Lac was paid by M/s JVG Finance Ltd. (In
liq.)
to M/s Tribhuvandas
Jewellers,New Delhi, for purchase of jewellary
CHART-22
TRANSACTION : 2
M/s JVG Finance Ltd. (In Liq.) issued cheques
from its CA No. 559, Corporation Bank,
Bhikaji
Cama Place, N.D. To M/s Mehrasons
Jewellers
New Delhi, for purchase
of jewellary.
Vide Ch. No. 114772
dt. 4.11.96 for
Rs. 10 Lac
Vide Ch. No.114773
dt. 4.11.96 for
Rs. 5 Lac
Total 25 Lac was paid by M/s JVG Finance
Limited
(In Liq.) to M/s Mehrasons Jewellers, New Delhi
for purchase of jewellary
Vide Ch. No. 114946
dt. 16.11.96 for
Rs. 10 Lac
CHART-23
TRANSACTION : 3
M/s JVG Finance Ltd. (In Liq.) from its CA
A/c No. 559 t/f in the
SB A/c of Sh. V.K. Sharma &
Smt. Veena Sharma (W/o Sh.
V.K. Sharma) vide following cheques for
purchase of jewellary from M/s
Mehrasons Jewellers
Rs. 2 Lac dt. 12.3.96 in
SB A/c No. 7044 of Smt.
Veena Sharma (w/o Sh. V
K
Sharma)
Rs. 2 Lac vide Ch. No.
0003545 dt. 16.3.96 to
SB A/c No. 5465, with
Corporation Bank, ND,
of Sh. V K Sharma t/f
from
CA 559
Rs. 2 Lac vide Ch. No.
0003546 dt. 8.4.96 to
SB A/c No. 5465, with
Corporation Bank, ND,
of Sh. V K Sharma t/f from
CA 559
Paid to M/s Mehrasons Jewellers, New Delhi
for purchase of jewellary.
That SFIO on its finding clearly establishes that :
a) Sh. V.K. Sharma, being Director of JVG Leasing Limited (in
liquidation) is liable for the offences of criminal breach of trust and
cheating under sections 409 read with section 405, 418 and 420 of
IPC.
b) Smt. Veena Sharma is liable for offence of cheating along with
Sh. V.K. Sharma under section 417 read with 415 and 120B of IPC.
As per findings of SFIO Sh. V.K. Sharma be also directed to deposit
the jewellery which was purchased from the current account number
559 of M/s JVG Finance Limited (in liquidation) maintained with
Corporation Bank, Bhikaji Cama Place, New Delhi.
31. That SFIO vide its report dated 11.02.2010 in finding No. 17 disclosed
illegal sale of Investments of M/s JVG Finance Limited (In Liquidation) and
its Group company in Contempt of Hon'ble High Court winding up order.
SFIO in the said report divulged that on scrutiny of Balance Sheets of M/s
JVG Finance Limited (In Liquidation) and M/s JVG Departmental Stores
Limited (In Liquidation) as at 31.03.1997, it is noticed by SFIO that these
companies had invested Rs. 75 Lacs each in 15,00,000 equity shares
(amounting to Rs. 150.00 Lakhs) of M/s India Ceroils Ltd. from Sh. Parag
Dalmia. As per SFIO report, Sh. V.K. Sharma acquired M/s India Ceroils
Limited during the year 1995-96 by purchasing all its shares in his own
name and in the name of his family members/relatives and the companies
managed/controlled by him at that time. As per SFIO report in the said
process both M/s JVG Finance Limited (In Liquidation) and M/s JVG
Departmental Stores Limited (In Liquidation) invested Rs. 75 Lakhs each
to purchase the shares of M/s India Ceroils Limited and 15,00,000 shares
of Rs. 10/- each are held in the names of M/s JVG Finance Limited (In
Liquidation) and M/s JVG Departmental Stores Limited (In Liquidation) as
is evident from the balance sheets of theses companies as at 31.03.1997.
The above fact regarding purchase of M/s India Ceroils Limited by M/s
JVG Finance Limited (In Liquidation) and M/s JVG Departmental Stores
Limited (In Liquidation) was also confirmed by Sh. Parag Dalmia
(representative of M/s India Ceroils Ltd.) before SFIO inspector.
31.1) That the process of above said investment by M/s JVG
Finance Limited (In Liquidation) and M/s JVG Departmental Stores
Limited (In Liquidation) in M/s India Ceroils Limited explained with
the help of following charts:-
CHART-24
Transaction : 1
M/s Angad Leasing Ltd (a co. owned by Parag
Dalmia Group) sold, 5,00,000 equity shares of
M/s India Ceroils Ltd, bearing distinctive Nos.
1425701 to 1925700 (Share Certificate Nos.
14258 to 19257) to M/s JVG Finance Ltd. (In
Liq.)
M/s JVG Finance Ltd. (In Liq.)
paid consideration of Rs 50,00,000
from A/c No. 559 vide Ch. No.
191491 debited on 29.6.1995.
M/s JVG Finance Ltd. (In Liq.)
CHART-25
Transaction : 2
M/s Akash Ganga Mercantiles Ltd. (Owned by
Parag Dalmia Group) sold 2,50,000 equity shares
of M/s India Ceroils Ltd, bearing Nos.2275701
to 2475700 and 725071 to 760070 and 795071
to 810070, (Share Certificate Nos. 207050 to
24757, 7250 to 7607 and 7950 to 8107) to
M/s JVG Finance Ltd. (In Liq.)
M/s JVG Finance Ltd. (In Liq.)
M/s JVG Finance Ltd. (In Liq.)
paid consideration of Rs
25,00,000
vide Ch. No. 597732 dated
05.09.1995 drawn on Bank of
America.
CHART-26
Transaction : 3
M/s Maurya Overseas Ltd. (owned by Dalmia
Group) sold 2,50,000 equity shares of M/s India
Ceroils Ltd, bearing distinctive Nos. 362571 to
545070, 642571 to 685070 and 2475701 to
250070 (Share Cert. Nos. 3633 to 5457, 6433 to
6857 and 24758 to 25007) to M/s Departmental
Stores Ltd (In Liq.)
M/s JVG Departmental Stores
Ltd. (In Liq.) paid consideration of
Rs. 25,00,000 vide Ch. No. 380131
drawn on Vijaya Bank on 31.3.95.
M/s JVG Departmental Stores
Ltd. (In Liq.)
CHART-27
Transaction : 4
M/s Akash Ganga Mercantiles (owned by Dalmia
Group) sold 2,50,000 equity shares of M/s India
Ceroils Ltd. bearing distinctive Nos. 2025701 to
2275700 (Share Cert. Nos. 20285 to 20757) to M/s
JVG Departmental Stores Ltd (In Liq)
M/s JVG Departmental Stores
Ltd. (In Liq.) paid consideration of
Rs. 25,00,000 vide Ch. No. 597679
drawn on Bank of America
07.9.95.
M/s JVG Departmental Stores
Ltd. (In Liq.)
CHART-28
Transaction : 5
M/s Angad Leasing Ltd (owned by Dalmia
Group) sold 2,50,000 equity shares of M/s India
Ceroils Ltd, bearing distinctive Nos. 177571 to
362070, 685071 to 725070 and 1925701 to 1950700
(Shares Cert. Nos. 1780 to 3632, 6858 to 7257
and 19258 to 19507) to M/s JVG
Departmental Stores Ltd. (In Liq.)
M/s JVG Departmental Stores
Ltd. (In Liq.)
M/s JVG Departmental Stores
Ltd. (In Liq.) paid consideration
of
Rs. 25,00,000 vide Ch. No.
380130
drawn on Vijaya Bank on
31.3.95.
31.2) That SFIO in its report also revealed that M/s India Ceroils Ltd.
was controlled/managed by Sh. V.K. Sharma, Ex-CMD of JVG Group
and his associates in the capacity of directors as is evident from
annual return made upto 14.08.1999. SFIO report further stated that
entire 30,00,070 shares of M/s india Ceroils Ltd. were transferred to
Cogent Group of companies including 7,50,000 shares each held by
M/s JVG Finance Ltd. (In Liq.) and M/s JVG Departmental Stores Ltd.
(In Liq.) as is evident from the annual return of M/s India Ceroils Ltd.
made upto 13.09.2004. The name of M/s India Ceroils Ltd. has been
changed to M/s Finite Infratech Ltd. Details of shareholding of the
Cogent group of companies in India Ceroils Ltd. as on 13.09.2004 are
as under:
TABLE : R
S. No.
Name of Company
No. of Shares Transferred
1.
M/s Bhupendra Meatliks Pvt. Ltd.
3,00,000
2.
M/s Camron Finance & Investment P Ltd
2,20,000
3.
M/s Cogent Ventures (India) Ltd.
7,50,070
4.
M/s BCFL Securities Ltd.
2,50,000
5.
M/s Milestone Developers Ltd.
1,00,000
6.
M/s Beecorp Finance Ltd.
1,50,000
7.
M/s Cogent Enterprises Ltd.
7,50,000
8.
M/s Protech Intrade Ltd.
2,30,000
9.
M/s Shalini Project (P) Ltd.
2,50,000
Total:
30,00,070
31.3) That SFIO in its report held that Sh. V.K. Sharma had connived
with his associate Directors viz., Smt. Namrata Krishan and Ms.
Sumona Choudhary (ex-directors of M/s India Ceroils Ltd. during the
relevant time) to siphon off the investments held by M/s JVG Finance
Ltd. (In Liquidation) and M/s JVG Departmental Stores Ltd (In
Liquidation) in M/s India Ceroils Ltd. amounting to Rs. 150.00 lakhs
sometime during the period from 15.08.1999 to 13.09.2004. Sh. V.K.
Sharma along with the aforesaid directors misappropriated the
assets/investments of the companies (In Liquidation) in contempt of
the Delhi High Court orders as M/s JVG Finance Limited (In
Liquidation) and M/s JVG Departmental Stores Limited (In Liquidation)
had been ordered to be wound up vide orders dated 05.061998 and
08.03.2001 respectively.
31.4) That SFIO has established violation of Section 539, 540, 542 and
543 of the Companies Act, 1956, therefore Sh. V.K. Sharma is liable to
be prosecuted for the aforesaid violations.
The copy of relevant documents collected by SFIO during its investigation
with regard to illegal sale of investments of M/s JVG Finance Limited (in
liq.) and its group company are enclosed and marked as Annexure – “R”
(Colly) to this application for kind perusal of the Hon'ble Court.
32. That SFIO vide its report dated 11.02.2010 in finding no. 18 disclosed
overstatement of Closing Stock of plots/land and income-Falsification of
Annual Accounts of M/s JVG Finance Limited (In Liquidation) for the year
1995-96. SFIO in its report clarified that M/s JVG Finance Limited started
its activities relating to sale of plots during the year 1991-92 and continues
upto 1995-96. Since 1996-97, the Company has not carried on such
business activities and did no business of sale of plots in the year 199697. Figures of Opening Stock, Closing Stock and Cost of land as indicated
in the Balance Sheet and Profit & loss Account of the company for the
years 1991-92 to 1995-96 are tabulated below for the purpose of
comparison:
TABLE : S
Particulars
(Rs. In Lakh)
1991-92
1992-93
1993-94
1994-95
1995-96
0.00
45.23
83.22
125.71
282.71
Cost
of
Land
purchased during the
year (B)
102.98
84.94
214.48
371.97
91.25
(A) + (B)
102.98
130.17
297.70
497.68
373.96
45.23
83.22
125.71
282.71
682.71
Opening
Stock
Plots/land (A)
Closing
Stock
plots/land
of
of
32.1) That from the above table it is clear that M/s JVG Finance
Limited overvalued the Closing Stock by taking value of Closing of
plots/land at much more than Opening Stock and Cost of land
purchased taken together during the year ending 31.3.1996. This has
resulted in increase in profit by the amount by which the Closing Stock
is overvalued. SFIO also stated that even from most conservative point
of view (when there is no sale of plots) M/s JVG Finance Limited has
overstated the Closing Stock and income at least by Rs. 308.75 lakh
(Rs. 682.71 lakh-Rs. 373.96 lakh) (as per Table S) during the year
ending 31.3.1996.
32.2) That SFIO in its report stated that M/s JVG Finance Limited (In
Liquidation) launched publicity campaign advertisements in the
newspapers to mobilize money from public under various Fixed
Deposit Schemes. SFIO further stated that the Unsecured Loans
Schedule of the Balance Sheet for the year ending 31.3.1996,
31.3.1997 and company's prospectus dated 30.1.1997 of Public Issue
opened in March, 1997 indicate increase in public deposit from Rs.
39.28 crore as on 31.3.1996 to Rs. 111.33 crore as on 30.9.1996 to
Rs. 338.71 crore as on 31.3.1997. It shows that increase in public
deposits during 1.10.1996 to 31.3.1997 was Rs. 227.38 crore (Rs.
338.71 crore – Rs. 111.33 crore). The increase in public deposits was
after publicity through advertisements in which grossly exaggerated
financial results for the year 1995-96 were shown. Pursuant to the
above, it is clear that M/s JVG Finance Limited (In liquidation0 and its
directors falsified the Annual Accounts for the year 1995-96
deliberately by overstating Closing Stock and Income. This was done
to show that the company was a highly profit earning company so that
the public is induced to make deposits and subscribe to company's
equity shares at a premium in the Public issue.
32.3) That SFIO concluded that following were the signatories to the
Balance Sheet and also they authorized the issue of such prospectus
which contains untrue statements of M/s JVG Finance Limited (In
Liquidation) for the year ending 31.3.1996 and they are liable to be
prosecuted under Section 63 and 628 of the Companies Act, 1956:
a) Sh. V.K. Sharma, Ex-CMD
b) Col. T.S. Bhan, Ex-director
c) Sh. Praveen Kumar Sarin, Statutory Auditor
d) Sh. B.P. Singh
That copy of relevant documents collected by SFIO during their
investigation with regard to overstatement of closing stock and incomeFalsification of Annual Accounts of M/s JVG Finance Limited are enclosed
and marked as Annexure – “S” (Colly) to this application for kind perusal
of the Hon'ble Court.
33. That SFIO vide its report dated 11.02.2010 in finding No. 19 disclosed
falsification of annual accounts of M/s JVG Finance Limited (In
Liquidation) for the year 1992-93 and also held liable penal action under
section 628 of the Companies Act, 1956.
33.1) That SFIO in its report envisaged that the company's profit for
the year ending 31.03.1993 was Rs. 22.77 lakh and this profit was
arrived at only after taking into account booking amount of Rs. 28.58
lakh as income. As per SFIO report M/s JVG Finance Limited had
wrongly taken booking amount of Rs. 28.58 lakh as income which
was, in fact, to be shown as Advance Deposit under the head “Current
Liabilities” in the Balance Sheet. SFIO further disclosed that had this
booking amount not taken into account, the company's profit of Rs.
22.77 lakh would have turned into loss of Rs. 5.81 Lakh (Rs. 28.58
lakh - Rs. 22.77 lakh). M/s JVG Finance Limiteds proposed and paid
dividend of Rs. 13.97 lakh to the shareholders for the year 1992-93.
The company's Reserve & Surplus at the beginning of 1992-93 i.e. on
01.04.1992 was only Rs. 2.18 lakh. Thus, SFIO clearly establishes
that company (In Liquidation) had paid dividend of Rs. 13.97 lakh out
of non existent profit for the year 1992-93 to its shareholders. As per
SFIO report the paid-up capital of the company as on 31.03.1993
comprised of 7,17,557 equity shares of Rs. 10 each. These equity
shares were entirely held by promoters , directors, their friends,
relatives and associates as per list given in the prospectus dated
05.05.1994. Thus, it is clear that the promoters and directors of the
company siphoned off company's money through payment of dividend,
though the company actually incurred loss for the year ending
31.03.1993. The company falsified its accounts for the year ending
31.03.1993 to present a rosy picture of the company by showing
profits and presenting it as a high dividend paying company to induce
the public subscribers to its equity shares in the Public Issue.
33.2) That following were signatories to the Balance Sheet of M/s JVG
Finance Limited (In Liquidation) or the year ending 31.03.1993 and
they are liable to be prosecuted under Section 628 of the companies
Act, 1956:
a) Sh. V.K. Sharma, EX-CMD
b) Col. T.S. Bhan, Ex-Director
c) Sh. A.B. Singh, Company Secretary
d) Sh. P. Seetharam, Statutory Auditor
The copy of relevant documents envisaging falsification of Annual
Accounts of JVG Finance Limited (in liquidation) for the year 1992-93 are
enclosed and marked as Annexure - “T” to this application for kind
perusal of the Hon'ble Court.
34. That SFIO in its report dated 11.02.2010 in finding No. 20 stated that M/s
JVG Finance Limited (In Liquidation) made violation of Section 63, 68 read
with section 628 of the Companies Act, 1956 due to misstatement of facts
in the prospectus dated 05.05.1994 relating to its Public Issue.
34.1) That as per SFIO report the company (In Liquidation) falsified its
accounts for the year ending 31.03.1993 by treating booking amount of
Rs. 28.58 lakhs, in respect of plots in Lok Nayak Jai Prakash Narain
Awas Yojana Phase-I, as income, which should have been shown as
Advance Deposit under the head “Current Liabilities” in the balance
sheet.
34.2) That SFIO in its report stated that M/s JVG Leasing Limited (In
Liquidation) given Loans & Advances to the tune of Rs. 391.02 lakh as
on 31.03.1994 to M/s JVG Financing & Services (P) Ltd., when there
was no business activity in M/s JVG Financing & Services (P) Ltd.
34.3) That SFIO in the said report stated that M/s JVG Finance Limited
had made following untrue statement in its prospectus relating to
Public Issue:(a) For the year ending 31.03.1993, inflated profits were shown in
the Prospectus by treating the booking amount of Rs. 28.58 lakh
as income.
(b) Its was falsely stated in the Prospectus that Sh. V.K. Sharma or
any of the Board of Directors of M/s JVG Finance Limited (In
Liquidation) had no connections with M/s JVG Financing &
Services (P) Ltd.
(c) It was falsely claimed that JVG enclave, Haridwar was a project
of M/s JVG Finance Limited while it was the project of M/s JVG
Financing & Services (P) Ltd.
34.4) That pursuant to the above, the following directors, being
signatories to prospectus are liable for prosecution under section 63,
68 and 628 of the Companies Act, 1956:
ii. Sh. V.K. Sharma (Ex-CMD, JVG Group of Companies in
liquidation).
iii. Col. (Retd.) T.S. Bhan
iv. Sh. S.P. Kapil
v. Sh. M.C. Joshi
Sh. V.K. Sharma, be directed to clarify the status of Loans &
Advances given by JVGFL to M/s JVG Financing & Services (P)
Ltd amounting to Rs.
391.02 lakh as on 31.03.1994 so that
necessary action may be taken by the Official Liquidator.
That the copy of relevant documents disclosing violation of Section 63 &
68 of the Companies Act, 1956 are enclosed and marked as Annexure –
“U” (Colly) to this application for kind perusal of the Hon'ble Court.
35. That SFIO in its report dated 11.02.2010 in finding No. 21 revealed that
M/s JVG Finance Limited (In Liquidation) siphoned off funds through land
at Sahibabad (U.P.). The SFIO further in its report stated that while
examining the trial Balances of M/s JVG Finance Limited (In liquidation)
for the year 1996-97, 1997-98 (01.04.1997 to 31.07.1997) and Cash Book
for the period 01.08.1997 to 31.10.1997 it is observed that the company
had incurred expenditure on development of land at Sahibabad
approximately to the tune of Rs. 66.79 Lakhs. However, Sh. V.K. Sharma,
didn't disclosed the fact about land of the company at Sahibabad before
the Official Liquidator and Hon'ble Delhi High Court.
35.1) That following persons, being directors/officers of the company
when it went into liquidation on 05.06.1998, were duty bound to fully
and truly discover to the liquidator all the property, movable and
immovable, of the company, and how and to whom and for what
consideration and when the company disposed of any part thereof, if
any, which they failed to do so and are liable to be prosecuted in terms
of Section 538 of the Companies Act, 1956 :i.
Sh. V.K. Sharma
ii. Sh. Bharat Bhushan Sharma (Presently known as Vinay Kumar
Sharma)
iii. Sh. T.S. Bhan
iv. Sh. Rajendra Kumar Goel
v. Sh. Ram Pabitra Singh
vi. Sh. Biresh Prasad Singh
vii. Sh. P.C. Sood
Sh. V.K. Sharma be directed to clarify expenses incurred on the
development of land and also identify the land at Sahibabad (U.P.) so
that possession may be taken by the Official Liquidator.
The copy of relevant documents explaining siphoning off JVG Finance
Limited funds through land at Sahibabad are enclosed and marked as
Annexure – “V” to this application for kind perusal of the Hon'ble Court.
36. That SFIO in its report dated 11.02.2010 in finding No. 22 revealed that
unclaimed balances lying in the Bank Accounts of Associate Companies
of M/s JVG Finance Limited (In Liquidation). The SFIO report further
states that during the course of examination of Cheque Book Register of
M/s JVG Finance Ltd. (In Liquidation), it is observed that the company (in
liquidation) had made an entry on 18.07.1996 for issue of Cheque No.
093974 of Rs. 3.65 crore from its Account No. CA-559 with Corporation
Bank, Bhikaji Cama Place, New Delhi to Account No. CA-1098 of M/s JVG
Leasing Limited (In Liquidation). Subsequently, M/s JVG Leasing Limited
(In Liquidation) from its bank account No. CA - 1098 issued to following six
promoters associate companies as mentioned in Table – T below:TABLE - T
SL. No.
Name of the Company
Cheque No.
Amount (Rs.)
1.
M/s Milch Portfolio (P) Ltd.
228156
80,00,000.00
2.
M/s Whiteways Financial Services
228153
40,00,000.00
3.
M/s Prize Securities Ltd.
228151
55,00,000.00
4.
M/s Duleet Securities (P) Ltd.
228150
60,00,000.00
5.
M/s Narcissus Financial
228154
55,00,000.00
6.
M/s Vista Securities (P) Ltd.
228152
75,00,000.00
Total :
3,65,00,000.00
The above six companies mentioned at Table – T were having their
bank accounts with Syndicate Bank, 2, Kaushalya Park, Hauz Khas,
New Delhi Branch.
36.1) That M/s JVG Finance Limited (In Liquidation) transferred Rs.
3.65 crore to M/s JVG Leasing Limited (In Liquidation) and M/s JVG
Leasing Limited (In Liquidation) transferred this money to six
companies as mentioned at Table – T and these six companies used
the money, received from M/s JVG Leasing Limited (In Liquidation), for
subscription of shares in M/s JVG Departmental Stores Limited (In
Liquidation) Public Issue. The impugned transaction is explained with
the help of following chart:
CHART-29
M/s JVG Finance (In Liq.) t/f 3.65 crore
from its A/c No. CA-559 on 20.7.96
To
M/s JVG Leasing Limited (In Liq.) A/c No.
CA-1098 (Rs. 3.65 Crore) & in turn the
said amount was t/f To
Milch Portfolio
(P) Ltd
Whitways
Financial
Services
Prize
Securities
Duleet
Securities
Narcissus
Financial
Vista
Securities
(P) Ltd.
All the above six companies used the said amount for
subscription of shares in M/s JVG Departmental
Stores Ltd. (In Liq.) Public Issue.
36.2) That as per SFIO report total eight companies were controlled
and managed by Sh. V.K. Sharma and his relatives. The following
credit balance were lying in the below mentioned companies as on
16.12.2008 :-
TABLE – U
SL.
No.
Name of the Company
Credit Balance lying as
on 16.12.2008 (Rs.)
1.
M/s Milch Portfolio (P) Ltd.
23,536.15
2.
M/s Whiteways Financial Services (P) Ltd.
45,268.00
3.
M/s Prize Securities Ltd.
53,094.25
4.
M/s Duleet Securities (P) Ltd.
91.20
5.
M/s Narcissus Fin. Services (P) Ltd.
16,621.00
6.
M/s Sewak Securities (P) Ltd.
14,028.25
7.
M/s Sunder Securities (P) Ltd.
47,445.40
8.
M/s Suryodaya Securities (P) Ltd.
3,346.25
TOTAL: 2,03,430.50
Syndicate Bank, 2, Kaushalya Park, Hauz Khas, New Delhi Branch, be
directed to remit the balance as mentioned in Table -U to the Official
Liquidator along with the interest. Further, the above said companies be
directed to refund the amount given by JVGFL & JVGLL to the associate
companies mentioned in Table- T. Further, Syndicate Bank, 2, Kaushalya
Park, Hauz Khas, New Delhi Branch may kindly be directed to provide
statement of accounts showing all the transactions and uses of the money
credited/debited in the accounts of companies as mentioned in Table- T.
Sh. V. K. Sharma, Ex-CMD be kindly also directed to explain the
siphoning of such huge amount for fraudulent objective.
The copy of relevant documents explaining unclaimed balances lying in
the Bank Accounts of Associate Companies of M/s JVG Finance Limited
are enclosed and marked as Annexure – “W” to this application for kind
perusal of the Hon'ble Court.
37. That SFIO vide its report dated 11.02.2010 in finding No. 23 revealed that
appointment of Sh. V.K. Sharma as Managing Director of M/s JVG
Finance Limited (In Liquidation) was void ab-initio and he had received
unauthorized remuneration. It is evident that appointment of Sh. V.K.
Sharma as Managing Director of M/s JVG Finance Limited (In liquidation)
was appointed w.e.f. 01.04.1991 but no return of appointment of
Managing Director in Form 25C was filed at all. However, in respect of his
appointment as Managing Director w.e.f. 17.06.1996, the resolution was
passed on 07.02.1997 and the return of appointment of Managing Director
was filed on 10.02.1997. As per the provisions of section 269(2) of the
Companies Act, 1956, the return in the prescribed form is required to be
filed within a period of 90 days from the date of such appointment. As this
was not done within prescribed period both in 1991 and 1997, the
company was required to obtain the approval of the Central Government
for such appointment. Hence, the appointment of Sh. V.K. Sharma as
Managing Director of M/s JVG Finance Limited w.e.f. 01.04.1991 and
thereafter from 17.06.1996 is irregular and void ab-initio. Consequently,
the remuneration received by Sh. V.K. Sharma as Managing Director is
irregular and unauthorized and he is liable to refund the same to the
company in terms of section 309(5A) of the Companies Act, 1956. The
amount of remuneration received by Sh. Sharma from 01.04.1994 to
31.03.1997 is Rs. 4,41,000/- besides the value of the perquisites and from
01.04.1991 to 31.03.1994 the remuneration paid was Rs. 2,16,000/- (@
Rs. 6000/- per month).
Sh. V.K. Sharma is liable to refund the total amount of Rs. 6,57,000/being the remuneration received by him.
The copy of relevant documents explaining unauthorized payment of
remuneration to Sh. V.K. Sharma as Managing Director of M/s JVG
Finance Limited (in liquidation) are enclosed and marked as Annexure –
“Y” (Colly) to this application for kind perusal of the Hon'ble Court.
38. That SFIO vide its report dated 11.02.2010 in its finding No. 24 stated that
M/s JVG Finance Limited (In Liquidation) contravened the provisions of
Section 211 of the Companies Act, 1956. SFIO in its report further
revealed that Annual Accounts of M/s JVG Finance limited (In liquidation)
for the year ending 31.03.1997 and Loans and Advances as on
31.03.1997 were obtained from Sh. Devendra Kumar Kapur, Statutory
Auditor of the company. As per SFIO report the Balance Sheet of M/s JVG
Finance Limited (In liquidation) as at 31.03.1997 indicates on the assets
side that the company had given Loans & Advances to the tune of Rs.
304.33 crore. After examination of the same the SFIO concluded that the
Loans & Advances were due by the director jointly with other persons(s)
(Sh. V.K. Sharma (HUF), firms in which director is a partner/proprietor
(JVG Finance Company and JVG Investment) but the same had not been
stated separately in the Loans & Advances Schedule (Schedule-11) of the
Balance Sheet. As per SFIO report , Loans were also due from some of
the JVG Group companies under the same management within the
meaning of sub-section (1B) of Section 370 of the Companies Act, 1956
but names of such companies had not been disclosed in the Loans &
Advances Schedule (Schedule-11) of the Balance Sheet as at 31.03.1997
in accordance with the disclosure requirements of Part I of Schedule VI of
the Companies Act, 1956.
38.1) That the Balance Sheet for the year ended 31.03.1997, Sh. V.K.
Sharma, being Chairman and Managing Director of the Company, was
the person responsible under section 209(6) of the Companies Act,
1956 for contravention of section 211(1) of the Act. He is therefore,
liable to be prosecuted under section 211(7) of the Companies Act,
1956.
39. That SFIO vide its report dated 11.02.2010 in finding No. 25 disclosed
contravention of Section 229 read with Section 233 of the Companies Act,
1956. SFIO in the said report stated that during investigation of Balance
Sheet of M/s JVG Finance Limited (In Liquidation) for the year 1995-96, it
was revealed that the company (In Liquidation) had appointed M/s Pee
Dee Kapur & Company, Chartered Accountants as auditor of the
Company for the year 1995-96 as per provisions of Companies Act, 1956.
SFIO, further in its report divulged that during the year 1995-96 the
accounts of the company were audited & Balance Sheet was signed by
Sh. Praveen Kumar Sarin, Chartered Accountant, on behalf of M/s Pee
Dee Kapur & Co.
39.1) That SFIO further disclosed that Sh. Praveen Kumar Sarin,
Chartered Accountant was not authorized to audit or sign the balance
sheet of the company (In Liquidation) for the year 1995-96 as per the
provisions of section 229 of the Companies Ac t, 1956, as he was
neither a partner nor proprietor of M/s Pee Dee Kapur & Co.
39.2) That SFIO clearly established in its report that since M/s Pee
Dee Kapur & Co., Chartered Accountants, was a proprietary concern,
of which Sh. D.K. Kapur was the proprietor. Sh. D.K. Kapur, Chartered
Accountant alone was entitled to sign M/s JVG Finance Limited (In
Liquidation) Balance Sheet as at 31.03.1996 and Sh. Kapur knowingly
allowed Sh. Praveen Kumar Sarin, Chartered Accountant to sign the
Balance Sheet. Therefore, Sh. D. K. Kapur along with Sh. Praveen
Kumar Sarin, Chartered Accountant is liable to be prosecuted u/s 233
for violation of section 227 and 229 of the Companies Act, 1956.
The copy of relevant documents explaining the contravention of Section
229 of the Companies Act, 1956 are enclosed and marked as Annexure –
“Z” (Colly) this application for kind perusal of the Hon'ble Court.
40. That SFIO vide its report dated 11.02.2010 in finding No. 26, 27, 28 and
29 alleged that company and its officers has contravened the provisions of
sections 159/220(1), 240 and held Sh. V.K. Sharma, Sh. D.K. Kapur,
Chartered Accountant, Statutory Auditor and Executive Director (Finance),
and Sh. Satinder Dutta (Brother-in-law of Sh. V.K. Sharma).
The copy of SFIO report dated 11.02.2010 along with relevant evidence
collected during investigation by SFIO are enclosed and marked as
Annexure - “AA” (Colly) to this application for kind perusal of the Hon'ble
Court.
41. That the present application is based on the investigation reports received
by SFIO.
42. That pursuant to the investigation reports of Serious Fraud Investigation
Office the Official Liquidator vehemently state that Sh. V.K. Sharma, being
Chairman & Managing Director of M/s JVG Group of Companies in
connivance
with
his
relatives
and
close
associates
knowingly
misappropriated and siphoned off the funds of the Companies (In
Liquidation) and created assets out of those funds for his personal gain at
the cost of large number of poor investors, inspite of prohibitory orders
from Reserve Bank of India and winding up order passed by the Hon'ble
High Court of Delhi and knowingly not disclosed the above said
transactions as revealed by SFIO before the Hon'ble High Court of Delhi
and Official Liquidator, Delhi and created third party interest to delay the
liquidation proceedings.
43. That the Hon'ble Court vide its order dated 10.12.2009 & 04.03.2010
appointed M/s Chaturvedi & Co., Chartered Accountant for segregation of
records of all the four JVG group companies (in liquidation) & scrutiny of
records of the JVGFL lying at 81/2, Aurbindo Marg, Opposite STC Flats,
Adchini, New Delhi. The Chartered Accountant vide its report dated
18.08.2010 and 25.03.2011 inter alia divulged contravention of Section
209 (1) & 301 of the Companies Act, 1956 as mentioned below:
43.1) The company (in liquidation) has not maintained proper books of
account with respect to all the sums of money received and expended
by the company and with respect to the assets and liabilities of the
company and sale and purchase of goods by the company and its
branch offices and such other records and documents which could
evidence the true and fair view of the transactions entered into by the
company. The Chartered Accountant has mentioned in its report that
the company has contravened the provisions of Section 209(1) of the
Companies Act, 1956.
43.2) The Company has not maintained the register of Control in
respect of transactions with companies and firms in which directors are
interested, hence granting or receiving of any secured or unsecured
loan to or from any company, firm or any other parties listed in the
register u/s 301 of the Companies Act, 1956. The Chartered
Accountant further in its report stated that there was no adequate
internal control procedure & internal audit system commensurate with
the size of the company and nature of its business, for the various
transactions existed.
The contravention of section 209 (1) & 209 (6) has already been
covered in Para No. 38 of the application. However, no instances of
transactions has been given by the Chartered Accountant in its report.
A perusal of findings of SFIO as discussed in the present application,
in almost all the transactions ex-directors and their relatives are prima
facie interested parties.
The copy of reports submitted by Chartered Accountant are enclosed and
marked as Annexure – “AB” (colly) to this application for kind perusal of
the Hon'ble Court.
44. That the Official Liquidator is entitled to take possession of :i.
Flat No. 38, 2nd Floor, Jeevan Anand Co-op. Group Housing Society,
Pitmapura, New Delhi,
ii. 130A, Sainik Farms, including Dev Niwas, Delhi which is presently in
the possession of Smt. Veena Sharma W/o Sh. V K Sharma (Ex-CMD,
JVG Group of companies in liquidation).
iii. A-302, Block-1, Meera Bagh, New Delhi-41.
iv. Property No. A-24, Okhla Industrial Area, Phase-I, New Delhi and
v. Flat No. 4, Kartar Bhavan, Co-operative Housing Society Limited,
Minoo Desai Road, Behind Radio Club, Coloba, Mumbai.
vi. Following flats situated at Mumbai:SL.
No.
1.
DETAILS OF FLATS OF WHOM POSSESSION IS TO BE TAKEN
Flat No. B-501, Ashoka Apartment, Off Yari Road, Versova, Andheri (W),
Mumbai.
2.
Flat No. B-502, Ashoka Apartment, Off Yari Road, Versova, Andheri (W),
Mumbai.
3.
Flat No. B-504, Ashoka Apartment, Off Yari Road, Versova, Andheri (W),
Mumbai.
4.
Flat No. B-702, Ashoka Apartment, Off Yari Road, Versova, Andheri (W),
Mumbai.
5.
Flat No. B-503, Ashoka Apartment, Off Yari Road, Versova, Andheri (W),
Mumbai.
6.
Flat No. B-701, Ashoka Apartment, Off Yari Road, Versova, Andheri (W),
Mumbai.
7.
Flat No. B-703, Ashoka Apartment, Off Yari Road, Versova, Andheri (W),
Mumbai.
8.
Flat No. B-704, Ashoka Apartment, Off Yari Road, Versova, Andheri (W),
Mumbai.
9.
Flat No. B-202, Panchmukhi Apartment, Off Yari Road, Versova, Andheri
(W), Mumbai.
10.
Flat No. B-302, Panchmukhi Apartment, Off Yari Road, Versova, Andheri
(W), Mumbai.
11.
Flat No. B-402, Panchmukhi Apartment, Off Yari Road, Versova, Andheri
(W), Mumbai.
12.
Flat No. B-101, Panchmukhi Apartment, Off Yari Road, Versova, Andheri
(W), Mumbai.
13.
Flat No. 202, Panchamrut Apartment, Off Yari Road, Versova, Andheri
(W), Mumbai.
14.
Flat No. 302, Panchamrut Apartment, Off Yari Road, Versova, Andheri
(W), Mumbai.
15.
Flat No. 502, Panchamrut Apartment, Off Yari Road, Versova, Andheri
(W), Mumbai.
16.
Flat No. 107, Panchtantra Apartment, Off Yari, Versova, Andheri (W),
Mumbai.
17.
Flat No. 407, Panchtantra Apartment, Off Yari, Versova, Andheri (W),
Mumbai.
in compliance of Section 456 (1) of the Companies Act, 1956.
45. That an order for recovery of Rs.9,72,85,739/- (Nine Crore Seventy Two
Lacs Eighty Five Thousand Seven Hundred Thirty Nine only) be passed in
favour of the Official Liquidator and against Sh. V K Sharma, respondent
No. 1.
46. That Sh. V.K. Sharma, Ex-Director, be directed to clarify the alleged
transaction worth Rs. 12 Crore to the Official Liquidator as mentioned in
Para 7 of this application.
47. That the transfer of 15 Lac Shares by JVGFL & JVGDSL to Cogent group
of companies be declared invalid and shares held by M/s Cogent group be
ordered to be handed over to the Official Liquidator. Apparently the
transfer of shares after date of winding up order is void ab-initio and both
the transferor i.e., ex-management of JVGFL & JVGDSL and transferee
i.e. Management Cogent group of companies are required to recompense
the company (in liquidation) with all the benefits that have been received
or accrued over such shares and recompense the amount of consideration
for transfer of shares i.e., Rs. 1.5 crore by the transferors and transferee
respectively as mentioned in Para 8 of this application.
48. That Sh. V.K. Sharma, Ex-CMD, M/s JVG Finance Limited (In Liquidation)
be directed to pay/refund the amount of Rs. 6,57,000/- received as
remuneration being his irregular and unauthorized appointment as
Managing Director from 01.04.1994 to 31.03.1997 including the value of
perquisites from 01.04.1991 to 31.03.1994 to the Official Liquidator as
mentioned in Para 37 of this application.
49. That Sh. V.K. Sharma, Ex-CMD of JVGSL be directed to clarify the
position to the Hon'ble Court with regard to property of the company
situated at Dehradun so that necessary directions of the Hon'ble Court in
the matter may be passed as mentioned in Para 10 of this application.
50. That direction be given to pay/refund the amount of Rs. 2,80,500/- (Two
Lacs Eight Thousand Five Hundred) received by Sh. V.K. Sharma, ExCMD, JVG Group of companies (In Liquidation) and Rs. 2,04,000/- (Two
Lacs Four Thousand) by Smt. Veena Sharma, W/o Sh. V.K. Sharma on
account of rent of the property situated at Ashoka Park, New Rohtak
Road, New Delhi which was acquired from the funds of M/s JVG Finance
Limited (In Liquidation) and M/s JVG Leasing Limited (In Liquidation) as
mentioned in Para 20.3 & 20.4 of the application to the Official Liquidator.
51. That Smt. Veena Sharma, W/o Sh. V.K. Sharma be directed to deposit the
consideration of Rs. 22 Lacs with interest to the Official Liquidator
received from the sale of the property situated at Flat No. 4, Kartar
Bhavan, Co-operative Housing Society Limited, Minoo Desai Road,
Behind Radio Club, Coloba, Mumbai as mentioned in Para 13 of this
application.
52. That necessary orders against Sh. V K Sharma, respondent No. 1 be
passed for deliberately and falsely filing affidavit dated 07.09.1999 and
Statement of Affairs of M/s JVG Finance Limited (In Liquidation) dated
07.09.1999 and 09.08.2005, M/s JVG Leasing Limited (In Liquidation)
dated 07.09.1999 and 25.07.2005 and M/s JVG Securities Limited (In
Liquidation) dated 08.09.1999 and 25.07.2005 before the Official
Liquidator
and
this
Hon'ble
Court
and
misappropriation
of
the
properties/funds of the companies (In Liquidation) for his personal gain at
the cost of the poor investors.
53. That following ex-directors/persons of M/s JVG Securities Limited (in
liquidation) being officers in default, be punished under Section 58A (6)
and Section 629A of the Companies Act, 1956 as mentioned in Para 14 of
this application:
(a) Sh. Vijay Kumar Sharma (treated as officer in default u/s 5 (e) of
the Companies Act, 1956
(b) Sh. Surya Thapar, Ex-Director
(c) Sh. Dinesh Prashar, Ex-Director
(d) Sh. Sukhbir Singh, Ex-Director
(e) Sh. Bhanwar Singh, Ex-Director
(f) Sh. Sanjay Sharma, Ex-Director
54. That Sh. V.K Sharma being Director of JVG Leasing Limited (in
liquidation) be punished for the offences of criminal breach of trust and
cheating under Section 409 read with Sections 405, 418 and 420 of IPC
and Smt. Veena Sharma be punished for offence of cheating along with
Sh. V.K. Sharma under section 417 read with 415 and 120B of IPC as
mentioned in Para 15 & 30 of this application for siphoning of funds of M/s
JVG Leasing Limited (in liquidation) for purchase of jewelery and Sh. V.K.
Sharma be directed to deposit the diamond ornaments which was
purchased from the current account of M/s JVG Leasing Limited (in
liquidation) maintained with Corporation Bank, Bhikaji Cama Place, New
Delhi.
55. That Sh. V.K. Sharma, Ex-CMD JVG Group of Companies (in liquidation)
being owner/partner of firms viz., M/s JVG Finance Company, M/s JVG
Investment & M/s Marwari Investment be directed to furnish the complete
details of above firms and to deposit the amount of Rs. 59.92 Lakh as on
31.03.1995 as mentioned in Para 17 of this application.
56. That the following directors and signatories of the prospectus of M/s JVG
Departmental Stores Limited be punished for prosecution under sections
63 and 68 read with section 628 of the Companies Act, 1956 for misstatement of facts in the prospectus as detailed in Para 21 of this
application:
i.
Sh. V.K. Sharma, Ex-Director
ii. Col. Tripat Singh Bhan, Ex-Director
iii. Maj. Gen. N.S. Nair, Director
iv. Ms. Anita Kwatra, Ex-Director
57. That direction be issued to Sh. Lallan Kumar Singh, Ex-Director of M/s
JVG Departmental Stores Limited (in liquidation) to submit the complete
details of the transactions of
purchase of land for M/s JVG Finance
Limited (in liquidation) as mentioned in Para 23 of this application.
58. The transactions as mentioned in Para 25 of this application for purchase
and sale of flats in Panchtantra, Panchamrut, Panchmukhi and Ashoka
Apartment executed after the date of winding up of the company i.e.,
05.06.1998 be declared invalid and Sh. V.K. Sharma, their relatives and
other persons who have pocketed the sale consideration of above
mentioned flats be ordered to deposit with interest in the accounts of the
company (in liquidation). It is submitted that out of 22 flats, the Hon'ble
Court vide order dated 27.11.2010 directed the Official Liquidator to take
possession of four flats viz. B-504, B-505, B-104 & B-105 in Panchtantra
Apartment decided by G.P. Thareja Committee. The Official Liquidator is
in the process of taking over the possession of the same. In case of one
flat bearing No. 302 Panchamrut Apartment the order passed by Thareja
Committee Committee is challenged by way of appeal in the Hon'ble High
Court of Delhi. One flat bearing No. B-201 Panchmukhi Apartment is
already in possession of Official Liquidator. The Hon'ble Court may kindly
consider for allowing the Official Liquidator to take over the possession of
17 flats (as mentioned in Para 44 (vi) )leaving five flats in which orders
have already been passed or Official Liquidator is in the possession of the
said flats.
59. The direction be issued to Sh. D.K. Kapur, Statutory Auditor/Executive
Director (Finance) of JVG Finance Limited (in liquidation) owner of M/s
Perpetual Finvest Pvt. Ltd. and M/s Supreme Lease Finvest Pvt. Ltd. who
purchased Flat No.506, Panchtantra II, Flat No. 606, Panchtantra II, Flat
No. 607 Panchtantra II and Flat No. 106, Panchtantra II to disclose the
source of consideration, so that ownership of these four flats can be
ascertained for further necessary action as mentioned in Para 25 of this
application.
60. That as mentioned in Para 26 of this application following signatories to
the Balance Sheet have rendered themselves liable under section 628 of
the Companies Act, 1956 also for knowingly making false statement with
regard to Promoters contributions:ii. Sh. Vijay Kumar Sharma :
Chairman & M.D.
iii. Sh. T.S. Bhan:
Director
iv. Sh. B.P. Singh:
Director
v. Sh. D.K. Kapur:
Statutory Auditor
vi. Sh. Deepak Asija:
Company Secretary
61. That as per Para 27 of this application Sh. Vijay Kumar Sharma, along
with his various relatives namely, Meenakshi Sharma, Vishal Sharma, Ritu
Sharma, Urmila Rani Sharma, Rajesh Sharma, Rajni Sharma etc. who
were also directors of the front companies and Sh. D.K. Kapur had
conspired to siphon off the funds of M/s JVG Finance Limited (In
Liquidation) in the garb of purchase of shares of M/s JVG Departmental
Stores Limited (In Liquidation) from the funds of M/s JVG Finance Limited
(In Liquidation). Accordingly, they also be punished for offences under
Sections 405,406,409,418 and 420 read with section 120B of Indian Penal
Code. They are also liable for punishment under Section 538, 540, 542
and 543 of the Companies Act, 1956.
62. That pursuant to Para 28 it is clear that Sh. V.K. Sharma siphoned off Rs.
73.16 lakhs as given in Table N of this application relating to dividend of
two years ending on 31.03.1995 and 31.03.1996 on 33,76,600 shares of
M/s JVG Departmental Stores Limited (In Liquidation) held by him and Sh.
V.K. Sharma, Ex-CMD, JVG Group of Companies (In Liquidation) be
punished under section 405, 409,410, 411, 415, 418 & 420 of the Indian
Penal Code, 1860 and Section 538, 539, 540, 542, 543 & 628 of the
Companies Act, 1956.
63. That as mentioned in Para 29 of this application Sh. V.K. Sharma be
punished for prosecution under Section 538, 539, 540, 542 and 543 of the
Companies Act, 1956 for misappropriation of funds by the management of
M/s JVG Finance Limited (In Liquidation) through Indira Vikas Patra.
64. That as mentioned in Para 35 of this application the following ex-directors
were liable for not disclosing correct and true facts before the Hon'ble
Court and the Official Liquidator about the land siphoning of fund for
purchase of land at Sahibabad and liable to be prosecuted under Section
538 of the Companies Act, 1956 :i.
Sh. V.K. Sharma
ii. Sh. Bharat Bhushan Sharma (Presently known as Vinay Kumar
Sharma)
iii. Sh. T.S. Bhan
iv. Sh. Rajendra Kumar Goel
v. Sh. Ram Pabitra Singh
vi. Sh. Biresh Prasad Singh
vii. Sh. P.C. Sood
65. That as mentioned in Para 36 the Syndicate Bank, 2, Kaushalya Park,
Hauz Khas, New Delhi Branch, be directed to remit the balance as
mentioned in Table -U to the Official Liquidator along with the interest.
Further,the associate companies as mentioned in Table-T be directed to
refund the amount given by JVGFL & JVGLL. Further, Syndicate Bank, 2,
Kaushalya Park, Hauz Khas, New Delhi Branch may kindly be directed to
provide statement of accounts showing all the transactions and uses of
the money credited/debited in the accounts of companies as mentioned in
Table- T. Sh. V. K. Sharma, Ex-CMD be kindly also directed to explain the
siphoning of such huge amount for fraudulent objective.
66. That as mentioned in Para 39 of this application Sh. D. K. Kapur along
with Sh. Praveen Kumar Sarin, Chartered Accountant be punished u/s 233
for violation of Section 227 and 229 of the Companies Act, 1956.
67. Pass necessary orders against the respondent no. 2 to 47 for assisting
Sh. V.K. Sharma in misappropriating/siphoning the funds of the company
(in liquidation).
68. That the concerned District Magistrate, Commissioner of Police, SSP,
Revenue Authorities and other District Authorities be directed to assist the
officials of Official Liquidator in taking over possession of the above said
properties.
PRAYER
In view of the findings of the SFIO and facts and circumstances stated in
the application it is most abundantly clear that the Ex-management of the
company has entered into transactions of siphoning and misutilization of
funds of the companies (in liquidation) making the offence more grievious
by knowingly contempting winding up orders passed by the Hon'ble High
Court, therefore it is most respectfully prayed that:
1. Declare that the company (in liquidation) is the owner of the properties
and direct the Official Liquidator to take possession of following
properties:A) (i) Flat No. 38, 2nd Floor, Jeevan Anand Co-op. Group Housing
Society, Piatmpura, New Delhi, as mentioned in Para 9 of this
application.
(ii) 130A, Sainik Farms, including Dev Niwas, Delhi which is presently
in the possession of Smt. Veena Sharma W/o Sh. V K Sharma (ExCMD, JVG Group of companies (in liquidation) as mentioned in Para 5
of this application.
(iii) A-302, Block-1, Meera Bagh, New Delhi-41 as mentioned in Para
11 of this application.
(iv) Property No. A-24
, Okhla Industrial Area, Phase-I, New
Delhi as mentioned in Para No. 12 of this application.
B) The following flats situated at Mumbai:(i) Flat No. 4, Kartar Bhavan, Co-operative Housing Society Limited,
Minoo Desai Road, Behind Radio Club, Coloba, Mumbai as mentioned
in Para 13 of this application,
(ii) (a) (1) Flat No. B-501, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(2)
Flat No. B-502, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(3)
Flat No. B-504, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(4)
Flat No. B-702, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(5)
Flat No. B-503, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(6)
Flat No. B-701, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(7)
Flat No. B-703, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(8) Flat No. B-704, Ashoka Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(9) Flat No. B-202, Panchmukhi Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai., as mentioned in Para 25 of this application.
(10) Flat No. B-302, Panchmukhi Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(11) Flat No. B-402, Panchmukhi Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(12) Flat No. B-101, Panchmukhi Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(13) Flat No. 202, Panchamrut Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(14) Flat No. 302, Panchamrut Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(15) Flat No. 502, Panchamrut Apartment, Off Yari Road, Versova,
Andheri (W), Mumbai, as mentioned in Para 25 of this application.
(16) Flat No. 107, Panchtantra Apartment, Off Yari, Versova, Andheri
(W), Mumbai, as mentioned in Para 25 of this application.
(17) Flat No. 407, Panchtantra Apartment, Off Yari, Versova, Andheri
(W), Mumbai, as mentioned in Para 25 of this application.
2. That an order for recovery of Rs.9,72,85,739/- (Nine Crore Seventy Two
Lacs Eighty Five Thousand Seven Hundred Thirty Nine only) and interest
@ 18% be passed in favour of the Official Liquidator and against Sh. V K
Sharma, respondent No. 1 as mentioned in Para 6 of this application.
3. That Sh. V.K. Sharma, Ex-CMD, M/s JVG Finance Limited (In Liquidation)
be directed to pay the amount of Rs. 6,57,000/- received as remuneration
being his irregular and unauthorized appointment as Managing Director
from 01.04.1994 to 31.03.1997 including of perquisites from 01.04.1991 to
31.03.1994 the Official Liquidator as mentioned in Para 37 of this
application.
4. That Sh. V.K. Sharma, Ex-Director, be directed to clarify the above said
alleged transaction worth Rs. 12 Crore to the Official Liquidator as
mentioned in Para 7 of this application.
5. That the transfer of 15 Lac Shares by JVGFL & JVGDSL to Cogent group
of companies be declared invalid and shares held by M/s Cogent group be
ordered to be handed over to the Official Liquidator. Apparently the
transfer of shares after date of winding up order is void ab-initio and both
the transferor i.e., ex-management of JVGFL & JVGDSL and transferee
i.e. Management Cogent group of companies are required to recompense
the company (in liquidation) with all the benefits that have been received
or accrued over such shares and recompense the amount of consideration
for transfer of shares i.e., Rs. 1.5 crore by the transferors and transferee
respectively as mentioned in Para 8 of this application.
6. That Sh. V.K. Sharma, Ex-CMD of JVGSL be directed to clarify the
position to the Hon'ble Court with regard to property of the company
situated at Dehradun so that necessary directions of the Hon'ble Court in
the matter may be passed as mentioned in Para 10 of this application.
7. That direction be given to refund the amount of Rs. 2,80,500/- (Two Lacs
Eight Thousand Five Hundred) received by Sh. V.K. Sharma, Ex-CMD,
JVG Group of companies (In Liquidation) and Rs. 2,04,000/- (Two Lacs
Four Thousand) by Smt. Veena Sharma, W/o Sh. V.K. Sharma on account
of rent of the property situated at Ashoka Park, New Rohtak Road, New
Delhi which was acquired from the funds of M/s JVG Finance Limited (In
Liquidation) and M/s JVG Leasing Limited (In Liquidation) as mentioned in
Para 20.3 & 20.4 of the application.
8. That Smt. Veena Sharma, W/o Sh. V.K. Sharma be directed to deposit the
consideration of Rs. 22 Lacs with interest to the Official Liquidator
received from the sale of the property situated at Flat No. 4, Kartar
Bhavan, Co-operative Housing Society Limited, Minoo Desai Road,
Behind Radio Club, Coloba, Mumbai as mentioned in Para 13 of this
application.
9. That following ex-directors/persons of M/s JVG Securities Limited (in
liquidation) being officers in default, be punished with imprisonment and
fine under Section 58A (6) and Section 629A of the Companies Act, 1956
as detailed in Para 14 of this application:
i.
Sh. Vijay Kumar Sharma (treated as officer in default u/s 5 (e) of
the Companies Act, 1956
ii. Sh. Surya Thapar, Ex-Director
iii. Sh. Dinesh Prashar, Ex-Director
iv. Sh. Sukhbir Singh, Ex-Director
v. Sh. Bhanwar Singh, Ex-Director
vi. Sh. Sanjay Sharma, Ex-Director
10. That Sh. V.K Sharma being Director of JVG Leasing Limited (in
liquidation) be punished for the offences of criminal breach of trust and
cheating under Section 409 read with Sections 405, 418 and 420 of IPC
and Smt. Veena Sharma be punished for offence of cheating along with
Sh. V.K. Sharma under section 417 read with 415 and 120B of IPC as
mentioned in Para 15 & 30 of this application for siphoning of funds of M/s
JVG Leasing Limited (in liquidation) for purchase of jewelery and Sh. V.K.
Sharma be directed to deposit the diamond ornaments which was
purchased from the current account of M/s JVG Leasing Limited (in
liquidation) maintained with Corporation Bank, Bhikaji Cama Place, New
Delhi.
11. That Sh. V.K Sharma being Director of JVG Leasing Limited (in
liquidation) be punished for the offences of criminal breach of trust and
cheating under Section 409 read with Sections 405, 418 and 420 of IPC
and Smt. Veena Sharma be punished for offence of cheating along with
Sh. V.K. Sharma under section 417 read with 415 and 120B of IPC as
mentioned in Para 15 of this application.
12. That Sh. V.K. Sharma, Ex-CMD JVG Group of Companies (in liquidation)
being owner/partner of firms viz., M/s JVG Finance Company, M/s JVG
Investment & M/s Marwari Investment be directed to furnish the complete
details of above firms and to deposit the amount of Rs. 59.92 Lakh as on
31.03.1995 as mentioned in Para 17 of this application.
13. That the following directors and signatories of the prospectus of M/s JVG
Departmental Stores Limited are liable be punished under sections 63 and
68 read with section 628 of the Companies Act, 1956 for mis-statement of
facts in the prospectus as detailed in Para 21 of this application:
i.
Sh. V.K. Sharma, Ex-Director
ii. Col. Tripat Singh Bhan, Ex-Director
iii. Maj. Gen. N.S. Nair, Director
iv. Ms. Anita Kwatra, Ex-Director
14. That direction be issued to Sh. Lallan Kumar Singh, Ex-Director of M/s
JVG Departmental Stores Limited (in liquidation) to submit the complete
details of the transactions of
purchase of land for M/s JVG Finance
Limited (in liquidation) as mentioned in Para 23 of this application.
15. The transactions as mentioned in Para 25 of this application for purchase
and sale of flats in Panchtantra, Panchamrut, Panchmukhi and Ashoka
Apartment executed after the date of winding up of the company i.e.,
05.06.1998 be declared invalid and Sh. V.K. Sharma, their relatives and
other persons who have pocketed the sale consideration of above
mentioned flats be ordered to deposit with interest in the accounts of the
company (in liquidation). It is submitted that out of 22 flats, the Hon'ble
Court vide order dated 27.11.2010 directed the Official Liquidator to take
possession of four flats viz. B-504, B-505, B-104 & B-105 in Panchtantra
Apartment decided by G.P. Thareja Committee. The Official Liquidator is
in the process of taking over the possession of the same. In case of one
flat bearing No. 302 Panchamrut Apartment the order passed by Thareja
Committee Committee is challenged by way of appeal in the Hon'ble High
Court of Delhi. One flat bearing No. B-201 Panchmukhi Apartment is
already in possession of Official Liquidator. The Hon'ble Court may kindly
consider for allowing the Official Liquidator to take over the possession of
17 flats (as mentioned in Para 44 (vi) )leaving five flats in which orders
have already been passed or Official Liquidator is in the possession of the
said flats.
16. The direction be issued to Sh. D.K. Kapur, Statutory Auditor/Executive
Director (Finance) of JVG Finance Limited (in liquidation) owner of M/s
Perpetual Finvest Pvt. Ltd. and M/s Supreme Lease Finvest Pvt. Ltd. who
purchased Flat No.506, Panchtantra II, Flat No. 606, Panchtantra II, Flat
No. 607 Panchtantra II and Flat No. 106, Panchtantra II to disclose the
source of consideration, so that ownership of these four flats can be
ascertained for further necessary action as mentioned in Para 25 of this
application.
17. That direction be issued to Sh. D.K. Kapur, Statutory Auditor/Executive
Director (Finance) of JVG Finance Limited (in liquidation) owner of M/s
Perpetual Finvest Pvt. Ltd. and M/s Supreme Lease Finvest Pvt. Ltd. who
purchased Flat No.506, Panchtantra II, Flat No. 606, Panchtantra II, Flat
No. 607 Panchtantra II and Flat No. 106, Panchtantra II to disclose the
source of consideration, so that ownership of these four flats can be
ascertained as mentioned in Para 25 of this application.
18. That as mentioned in Para 26 of this application following signatories to
the Balance Sheet have rendered themselves liable under Section 628 of
the Companies Act, 1956 be punished for knowingly making false
statement with regard to Promoters contributions:i.
Sh. Vijay Kumar Sharma :
Chairman & M.D.
ii. Sh. T.S. Bhan:
Director
iii. Sh. B.P. Singh:
Director
iv. Sh. D.K. Kapur:
Statutory Auditor
v. Sh. Deepak Asija:
Company Secretary
19. That as per Para 27 of this application Sh. Vijay Kumar Sharma, along
with his various relatives namely, Meenakshi Sharma, Vishal Sharma, Ritu
Sharma, Urmila Rani Sharma, Rajesh Sharma, Rajni Sharma etc. who
were also directors of the front companies and Sh. D.K. Kapur had
conspired to siphon off the funds of M/s JVG Finance Limited (In
Liquidation) in the garb of purchase of shares of M/s JVG Departmental
Stores Limited (In Liquidation) from the funds of M/s JVG Finance Limited
(In Liquidation). Accordingly, they be punished for offences under Sections
405,406,409,418 and 420 read with section 120B of Indian Penal Code.
They be also punished under Section 538, 540, 542 and 543 of the
Companies Act, 1956.
20. That pursuant to Para 28 it is clear that Sh. V.K. Sharma siphoned off Rs.
73.16 lakhs as given in Table N of this application relating to dividend of
two years ending on 31.03.1995 and 31.03.1996 on 33,76,600 shares of
M/s JVG Departmental Stores Limited (In Liquidation) held by him and Sh.
V.K. Sharma, Ex-CMD, JVG Group of Companies (In Liquidation) be
punished for prosecution under section 405, 409,410, 411, 415, 418 & 420
of the Indian Penal Code, 1860 and Section 538, 539, 540, 542, 543 &
628 of the Companies Act, 1956.
21. That as mentioned in Para 29 of this application Sh. V.K. Sharma be
punished for prosecution under Section 538, 539, 540, 542 and 543 of the
Companies Act, 1956 for misappropriation of funds by the management of
M/s JVG Finance Limited (In Liquidation) through Indira Vikas Patra.
22. That as mentioned in Para 35 of this application the following ex-directors
were liable for not disclosing correct and true facts before the Hon'ble
Court and the Official Liquidator about the land siphoning of fund for
purchase of land at Sahibabad and be punished under Section
538 of the Companies Act, 1956 :i.
Sh. V.K. Sharma
ii. Sh. Bharat Bhushan Sharma (Presently known as Vinay Kumar
Sharma)
iii. Sh. T.S. Bhan
iv. Sh. Rajendra Kumar Goel
v. Sh. Ram Pabitra Singh
vi. Sh. Biresh Prasad Singh
vii. Sh. P.C. Sood
23. That as mentioned in Para 36 the Syndicate Bank, 2, Kaushalya Park,
Hauz Khas, New Delhi Branch, be directed to remit the balance as
mentioned in Table -U to the Official Liquidator along with the interest.
Further,the associate companies as mentioned in Table-T be directed to
refund the amount given by JVGFL & JVGLL. Further, Syndicate Bank, 2,
Kaushalya Park, Hauz Khas, New Delhi Branch may kindly be directed to
provide statement of accounts showing all the transactions and uses of
the money credited/debited in the accounts of companies as mentioned in
Table- T. Sh. V. K. Sharma, Ex-CMD be kindly also directed to explain the
siphoning of such huge amount for fraudulent objective.
24. That as mentioned in Para 39 of this application Sh. D. K. Kapur along
with Sh. Praveen Kumar Sarin, Chartered Accountant be punished u/s 233
for violation of Section 227 and 229 of the Companies Act, 1956.
25. Pass necessary orders of punishment against Sh. V K Sharma,
respondent No. 1 for deliberately and falsely filing affidavit dated
07.09.1999 and Statement of Affairs of M/s JVG Finance Limited (In
Liquidation) dated 07.09.1999 and 09.08.2005, M/s JVG Leasing Limited
(In Liquidation) dated 07.09.1999 and 25.07.2005 and M/s JVG Securities
Limited (In Liquidation) dated 08.09.1999 and 25.07.2005 before the
Official Liquidator and this Hon'ble Court and misappropriation of the
properties/funds of the companies (In Liquidation) for his personal gain at
the cost of the poor investors.
26. Pass necessary orders against the respondent no. 2 to 47 for assisting
Sh. V.K. Sharma in misappropriating/siphoning the funds of the company
(in liquidation).
27. That the concerned District Magistrate, Commissioner of Police, SSP,
Revenue Authorities and other district authorities be directed to assist the
officials of Official Liquidator in taking over possession of the above said
properties.
28. pass such other order(s) as may deem fit and proper in the facts and
circumstances of the case.
PLACE: NEW DELHI
DATE: 07th APRIL, 2010
-Sd /(MOHD. SHAKEEL)
ASSTT. OFFICIAL LIQUIDATOR
DELHI HIGH COURT
THROUGH
-Sd /(RAJIV BAHL)
ADVOCATE
IN THE HIGH COURT OF DELHI AT NEW DELHI.
(ORIGINAL JURISDICTION)
C.A. No 867 OF 2011
IN
C.P. No. 265/1998, 266/1998, 267/1998 & 385/1998
IN THE MATTER OF COMPANIES ACT,1956.
AND IN THE MATTER OF
4. M/s JVG FINANCE LIMITED (IN LIQUIDATION)
5. M/s JVG SECURITIES LIMITED (IN LIQUIDATION)
6. M/s JVG LEASING LIMITED (IN LIQUIDATION)
7. M/s JVG DEPARTMENTAL STORES LIMITED (IN LIQUIDATION)
THROUGH OFFICIAL LIQUIDATOR, A2,W2, CURZON ROAD BARRACKS,
KASTURBA GANDHI MARG, NEW DELHI
AFFIDAVIT
I, MOHD. SHAKEEL, ASSTT. OFFICIAL LIQUIDATOR, working in the
office of Official Liquidator attached to this Hon'ble Court of Delhi do
hereby solemnly affirm and declare as under:2. That I am the deponent in the accompanying application &
acquainted with the facts of the case and able to depose thereof.
3. That I have read the accompanying application which has been
drafted under my instruction and have understood its contents.
4. That the contents of the paragraphs of the application are true and
correct to my knowledge and information received from the records
of the company in my office.
DEPONENT.
VERIFICATION:Verified at New Delhi on this 07th day of April, 2011 that the contents
of Para's 1 to 3 of the above affidavit are true and correct as per
records maintained in this office of Official Liquidator to the best of
my knowledge and belief and nothing material has been concealed.
DEPONENT.