MURKY DETAILS OF INDIA'S MOST WANTED HAWALA DEALER, NAND KISHORE CHATURVEDI AND ASHOK MITTAL, HAVE BEEN REVEALED IN THE CASE OF HOTEL ROYAL PLAZA BEFORE THE NCLT.

 

Bharat Jeetega, Corruption Meetaga!

PUBLIC INVESTIGATION

EXPOSE ON INDIA'S MAJOR HAWALA RACKET 

Key players: Nand Kishore Chaturvedi and Ashok Mittal (Note: All facts and documents are public and submitted in court. Here is the link to the key document: 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.)

 MURKY DETAILS OF INDIA'S MOST WANTED HAWALA DEALER, NAND KISHORE CHATURVEDI AND ASHOK MITTAL, HAVE BEEN REVEALED IN THE CASE OF HOTEL ROYAL PLAZA BEFORE THE NCLT.

By Sarah Jose

Five-star hotel Royal Plaza's cases before the NCLT (National Company Law Tribunal) have revealed murky details of financial irregularities and fraudulent activities involving #AshokMittal, the hotel's promoter, and #NandKishoreChaturvedi, India's most wanted hawala dealer, whom the #IncomeTax and #EnforcementDirectorate (ED) has been searching for the past five years. He is suspected to have been hiding in India while evading arrest. 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

Following the expose, the Income Tax authorities raided Ashok Mittal's businesses and properties, including the hotel Royal Plaza located at Ashok Road in 2022.https://economictimes.indiatimes.com/news/india/i-t-dept-raids-hotel-royal-plazas-chairman-for-stashing-rs-40-crore-abroad/articleshow/93074759.cms Fearing he would slip away like Chaturvedi, the department issued a LOC (Look Out Circular) against him. The dispute has brought documentary evidence of their joint business interests in a foreign company, Hillcrest, which was misused in gross violation of the tax laws to bring tainted money through the FDI (foreign direct investment) route to control the hotel's management and operations. It was also used to launder illegal funds and evade taxes.https://www.indiatoday.in/india/story/income-tax-dept-raids-hawala-operator-nandkishore-chaturvedi-entities-several-states-2390183-2023-06-08

The tax authorities and enforcement department are probing the funding and are likely to seize Hillcrest shares under the stringent Benami case. This will bring a curtain on almost two decades of brazen misuse of financial powers to grab prime property in Delhi and force out the legitimate owners who have been fighting for their rights for years.

CORE OF DISPUTE PENDING BEFORE NCLT

The core of the dispute is to who will control the affairs, operations and management of the Company namely Hotel Queen Road Pvt. Ltd. The Equity Shareholders of Hotel Queen Road Pvt. Ltd. comprise of three groups namely Ram Parshotam Mittal Group comprising of Ram Parshotam Mittal, his wife Sarla Mittal, his daughters namely Vandana Mittal, Bhawana Gupta, Sapna Jain, Jyoti Kesri and their 92.69% controlled company M/s Moral Trading and Investments Ltd., Ashok Mittal and others Group comprising of Ashok Mittal and other Shareholders. The Preference Shareholders of Hotel Queen Road Pvt. Ltd. are M/s Hillcrest Reality SDN. BHD. (a Foreign Tainted Shell Company illegally incorporated in Malaysia by Ashok Mittal which has a paid up capital of only RM2 equal to INR 23/-), M/s Hillcrest Reality SDN. BHD. was being managed and controlled by its Power of Attorney Holder Nand Kishore Chaturvedi who is an Absconding Fugitive and Directorate of Enforcement and Income Tax Department are looking out for him since June 2017.https://www.republicworld.com/business/industry/nclt-to-rule-on-fate-of-historic-royal-plaza-hotel-in-ownership-dispute.news

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.

 https://ashokmittalhotelplaza.blogspot.com/2023/12/jeetega-corruption-meetaga-public.html

The following Petitions/ Applications are pending before NCLT for adjudication:

1. Hotel Queen Road P. Ltd. Vs. Hillcrest Realty Sdn. Bhd. And Ors.

(i) R.A No. 4/ 2023 in C.P. No. 992/2005,

(ii) I.A. No. 363 of 2023 in C.P. No. 992/2005;

(iii) IA No.384 in CP No. 992/2005

(iv) IA No.410 of 2023 in CP No. 992/2005;

(v) Main C.P. No. CP No. 992/2005.

2. M/s Hillcrest Realty SDN. BHD Vs. Mr. Ram Parshotam Mittal AND ORS;

(i) I.A. No. 358 of 2023 in C.P. No. 1832/2008;

(ii) I.A. No. 38 of 2023 in C.P. No. 1832/2008;

(iii) I.A. No. 385 of 2023 in C.P. No. 1832/2008

(iv) Main C.P. No.1832/2008;

3. Mr. Ram Parshotam Mittal & Ors. Vs. M/s Hotel Queen Road Pvt. Ltd. & Ors.

(i) I.A. No. 362 of 2023 in C.P. No. 47(ND)/2010

(ii) I.A. No. 65 of 2023 in C.P. No. 47(ND)/2010

(iii) I.A. No. 39 of 2023 in C.P. No. 47(ND)/2010

(iv) I.A. No. 37 of 2023 in C.P. No. 47(ND)/2010

(v) I.A. No. 386 of 2023 in C.P. No. 47(ND)/2010

(vi) Main C.P. No. 47(ND)/2010,

4. Ram Parshotam Mittal & Ors. Versus Hotel Queen Road Pvt. Ltd. and Ors. Company Petition No.108 of 2023.

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