Ashok Mittal, of the hotel Royal Plaza, and his partner, Nand Kishore Chaturvedi, India's most wanted hawala dealer, face multiple criminal probes for financial fraud and money laundering

 

Bharat Jeetega, Corruption Meetega!

PUBLIC INVESTIGATION

EXPOSE ON THE MAJOR HAWALA RACKET IN INDIA

Key players: Nand Kishore Chaturvedi and Ashok Mittal (Note: All facts and documents are public and submitted in court. Here is the link of key document in the case:https://www.scribd.com/document/690485435/Ia-No-386-of-2023-Volume-i-to-Volume-IV-in-Cp-No-47-of-2010-1?secret_password=H1wu4g3dAlSaAWDFi1Sx

(The purpose of this article is to create public awareness and not target any individual.)

Ashok Mittal, of the hotel Royal Plaza, and his partner, Nand Kishore Chaturvedi, India's most wanted hawala dealer, face multiple criminal probes for financial fraud and money laundering.

By Geeta Chandaran

#AshokMittal, of the #HotelRoyalPlaza, is being investigated for his benami investments in the hotel Royal Plaza, Delhi, his close relationship to #NandKishoreChaturvedi, the most wanted hawala dealer in India, and for his illegally issued and allotted right equity shares in his name, which allowed Ashok Mittal to take control of the hotel's management and operations. This is a flagrant violation of the law, as the ownership and administration of the hotel are being jeopardised. https://www.indiatoday.in/india/story/income-tax-dept-raids-hawala-operator-nandkishore-chaturvedi-entities-several-states-2390183-2023-06-08;  https://www.outlookindia.com/business-spotlight/delhi-high-court-upholds-loc-black-money-launderer-ashok-mittal-of-hotel-royal-plaza-by-abhinav-sharma-news-334756

Fearing Ashok Mittal's escape, the Income Tax raided Hotel Plaza and his other enterprises in 2022 and issued a Look Out Circular (LOC). https://economictimes.indiatimes.com/news/india/i-t-dept-raids-hotel-royal-plazas-chairman-for-stashing-rs-40-crore-abroad/articleshow/93074759.cms. As a result, there is now much less faith and confidence in the hotel's operations and administration. This has happened as a result of the Enforcement Directorate (ED) and IT authorities discovering that Nand Kishore Chaturvedi and Ashok Mittal had close relationships, particularly with Hillcrest Realty, a Malaysian business that made an FDI investment of proceeds of crime of Rs.28.29 crores in Hotel Plaza. R. P. Mittal, the hotel's largest stockholder, has been forced out by the pair using Hillcrest and the illegitimate issuance of right equity shares. They are now in charge of the hotel's assets and activities as a result.

Before the NCLT, R. P. Mittal and his relatives have challenged the unlawful allotment of right equity shares to Ashok Mittal. They have insisted that the current Board of Directors of Hotel Queen Road Pvt. Ltd. be immediately dissolved and that administrator be appointed to oversee the hotel's operations. Further to reinstate the initial share patterns where they held the majority of the shares. The fact that Hillcrest is a Benami firm with a questionable investment and a 20-year term that ends in 2023 has reinforced their case, and it is possible that the government will confiscate the company's shares. This can result in a major change in the company's power and control dynamics.

The petition before the NCLT in IA No. 384 of 2023 in CP No. 992 of 2005, IA No.385 of 2023 in CP No. 1832 of 2008 and IA No.386 of 2003 in CP No.47/ND/2010 gives details of Ashok Mittal's manipulation of equity shares after controlling the company from the back door through benami investment. This has resulted in a significant shift in the balance of power and control within the company. Following are the facts of the case and the crux of the dispute. https://www.republicworld.com/business/industry/nclt-to-rule-on-fate-of-historic-royal-plaza-hotel-in-ownership-dispute.news

1. In 2002, R.P. Mittal, along with his family and his company, purchased Hotel Royal Plaza by acquiring 99.99% equity shares (8,98,193 shares out of a total of 8,98,352 shares) of Rs. 10 each of Hotel Queen Road Pvt. Ltd. R.P. Mittal gave 1 equity share of Rs. 10 each to his younger brother, Ashok Mittal.

1. In 2003, a foreign shell company, Hillcrest Reality SDN. BHD., Malaysia, belonging to Hawala Operator Nand Kishore Chaturvedi, was allotted 28,29,290 preference shares of Rs. 100 each in Hotel Queen Road Pvt. Ltd.
2. Ashok Mittal and Nand Kishore Chaturvedi/Hillcrest Reality SDN. BHD contested Hotel Royal Plaza's 2005 allocation of additional 81,01,648 equity shares to R.P. Mittal, his wife, and his company in front of the Delhi High Court.
3. The company's Board of Directors took over management of the Hotel Royal Plaza after Hillcrest Reality SDN. BHD. Malaysia received voting rights from the Delhi High Court and the Supreme Court in 2009.
4. Misusing the voting rights, the Board of Directors constituted by Hillcrest Reality SDN. BHD. Malaysia in July 2009 illegally offered right shares in the ratio of 1.67. Even though 81,01,648 equity shares allotted to R.P. Mittal Group were pending in a sub-judiciary decision of the Delhi High Court, R.P. Mittal Group was also offered 1,35,29,752 (81,01,648 x 1.67) shares of equity shares against the sub-judiciary allotment of 81,01,648 equity shares.
5. Since the allotment of 81,01,648 equity shares was a sub-judice before the Hon'ble Delhi High Court, 1,35,29,752 shares of right shares could not have been offered to R.P. Mittal Group, and the said right offer being illegal, R.P. Mittal Group did not subscribe to the same.
6. However, knowing fully well that the Right Offer of 1,35,29,752 Nos. of Right Shares is Sub-Judice, the Board of Directors of Hotel Royal Plaza, constituted by Nand Kishore Chaturvedi/Hillcrest Reality SDN. BHD, illegally allotted 1,00,00,003 Nos. of Right Shares to Ashok Mittal out of the said illegal Right Issue of 1,35,29,752 Nos. of Right Shares.
7. Via Order dated May 31, 2013 of the Delhi High Court, which is confirmed by the Supreme Court via Order dated May 10, 2019, the allotment of 81,01,648 shares of R.P. Mittal Group was held to be invalid. Resultantly, 1,00,00,003 right shares illegally allotted to Ashok Mittal out of the Sub-Judice Right Entitlement of the R.P. Mittal Group of 1,35,29,752 shares also became illegal.
8. Thereafter out of his illegally allotted 100,00,003 equity shares, Ashok Mittal further on 9.09.2013 illegally transferred 88,00,000 nos. of equity shares to one of his company namely Litolier Finance Ltd. (60,00,000) nos. of equity shares), his wife Mrs Nirupama Mittal (13,00,000 nos. of equity shares), his son Vikram Mittal (5,00,000 nos. of equity shares) and his daughter Ms Ruchi Ashok Mittal (5,00,000 nos. of equity shares), and his HUF namely Ashok Mittal HUF (5,00,000 nos. of equity shares).
9. With effect from July 20, 2003, the preference shares allotted to Hillcrest Reality SDN. BHD. ceased to exist, and R.P. Mittal Group has a majority (99.99%) of equity shares. Hence, R.P. Mittal Group has knocked on the doors of NCLT to take over control and management of the Hotel Royal Plaza from the clutches of the Board of Directors constituted by Hillcrest Reality SDN. BHD. and Nand Kishore Chaturvedi, which ceased to exist w.e.f. July 20, 2023.

For further details on the case, please read here:  https://ashokmittalhotelplaza.blogspot.com/2023/12/jeetega-corruption-meetaga-public.html

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