WHY FUGITIVE NAND KISHORE CHATURVEDI & ASHOK MITTAL FOREIGN SHELL COMPANY HILLCREST IN HOTEL ROYAL PLAZA COULD BE SEZIED UNDER BLACK MONEY LAWS?

 Bharat Jeetega, Corruption Meetega!

PUBLIC INVESTIGATION

EXPOSE ON THE MAJOR HAWALA RACKET IN INDIA

Key players: Nand Kishore Chaturvedi and Ashok Mittal. One of the key document could be accessed here: 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

 (Note: All facts and documents are public and submitted in court. (The purpose of this article is to create public awareness and not target any individual.)

WHY FUGITIVE NAND KISHORE CHATURVEDI & ASHOK MITTAL FOREIGN SHELL COMPANY HILLCREST IN HOTEL ROYAL PLAZA COULD BE SEZIED UNDER BLACK MONEY LAWS?

By Sonia Mehta

FUGITIVE #NandKishoreChaturvedi and his business partner #AshokMittal, presently under Income Tax (IT) probe for multiple tax violations and black money transactions are heading for trouble as their "investments/assets" could be seized under the stringent black money laws. Tax authorities and the #EnforcementDirectorate (ED) are likely to seize benami transactions made in the #RoyalPlazahotel at Ashoka Road, Delhi, under the stringent black money act. The FDI (foreign direct investment) was made through a Malaysian-based company, #Hillcrest, to the tune of Rs 28.29 crore in 2003. The investment is linked to #AshokMittal and his family and #NandKishoreChaturvedi, India's most wanted #hawaladealer. They are both under the probe of the two financial agencies. https://www.asianprimenews.com/news/ashok-mittal-and-wanted-hawala-dealer-nandkishore-chaturvedi-invested-in-hotel-royal-plaza-through-hillcrest-an-illicit-foreign-shell-company-according-to-an-it-probe/

(Check details of IT & ED raids on #NandKishoreChataurvedi here: https://www.indiatoday.in/india/story/income-tax-dept-raids-hawala-operator-nandkishore-chaturvedi-entities-several-states-2390183-2023-06-08 and his partner #AshokMittal here: https://economictimes.indiatimes.com/news/india/i-t-dept-raids-hotel-royal-plazas-chairman-for-stashing-rs-40-crore-abroad/articleshow/93074759.cms.). Reader interested on Chaturvedi could click here: https://www.freepressjournal.in/mumbai/mumbai-ed-on-lookout-for-nandkishor-chaturvedi-who-provided-loans-to-company-owned-by-cm-uddhav-thackerays-relative#:~:text=Uddhav

The IT authorities have been informed about the details of the benami transactions that have been invested in the five-star hotel. A copy of a letter sent to IT authorities reveals that the two business partners have established elaborate shell companies in India and foreign countries to hide their black money earned through dubious means and avoid paying taxes. (Details of #LOC against #AshokMittal could be found here: 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

According to the complainant, Jyoti Kesri, a resident of 74-A, Sainik Farms Central Avenue, South Delhi-110062, Ram Parshotam Mittal and Mrs. Sarla Mittal, both residents of Sainik Farms Central Avenue, South Delhi, sent a letter dated January 25, 2023, to the Initiating Officer (Assistant Commissioner of Income Tax/Deputy Commissioner of Income Tax, Benami Prohibition Unit 1, Delhi). requesting them to take the necessary action against the Benami property and attach it as a crime of proceeds of the illegal activity. The letter request to investigate and attach/ acquire/ confiscate 8.5% Redeemable Preference Shares of 28,29,290 Nos. (23,65,000 + 4,64, 290) of Rs.100/- each aggregating to total value of Rs.28,29,29,000/- vide Share Certificate No. 101 dated 05.05.2003 for 23,65,000 Nos. Preference Shares of Rs. 100 each of value of Rs.23,65,00,000/- Share Certificate No.102 dated 19.07.2003 for 4,64,290 Nos. Preference Shares of Rs. 100 each of value of Rs.4,64,29,000/- issued by an Indian Company named Hotel Queen Road Private Limited, 19, Ashoka Road, New Delhi- 110001 in the name of M/s Hillcrest Realty SON BHD, Malaysia which is the “Benami Transaction”/“Benami Property” of Mr. Ashok Mittal resident of Doctor Centre, 135, August Kranti Marg , Kemp’s Corner, Mumbai-36 (and also at 42, Ashoka Avenue, Sainik Frams, M.B Road New Delhi – 62), and hence the said “Benami Property” is liable to be attached / acquired / confiscated under the provisions of Prohibition of Benami Property Transactions Act, 1988 read with the Benami Transactions (Prohibition) Amendment Act, 2016.

That the Complainants has given to the Income Tax Department a Broad Overview of the flow of the Undisclosed Income / Black Money of Mr. Ashok Mittal, from India to Swiss bank Accounts of his son Mr. Ashok Mittal, and therefore its return to India to hold “Benami Property” of Rs. 28,29,29,000/- camouflaged as a Foreign Investment of a Company called Hillcrest Realty SDN. BHD., Malaysia to purchase “Benami Property” of 28,29,290 Nos. (23,65,000 + 4,64,290) 8.5% Preference Shares of Rs.100/- each aggregating to a value of Rs. 28,29,29,000/- in 2003 (while present market value could be around Rs. 450/- Crore) vide Share Certificate No. 101 dated 05.05.2003 for 23,65,000 Nos. Preference Shares of Rs. 100 each of value of Rs.23,65,00,000/- and Share Certificate No.102 dated 19.07.2003 for 4,64,290 Nos. Preference Shares of Rs. 100 each of value of Rs.4,64,29,000/-, in the Indian Company namely Hotel Queen Road Private Ltd., 19 Ashok Road, New Delhi-110001.The said “Benami Property” is an outcome of a “Benami Transaction” of Mr. Ashok Mittal and it belongs to Mr. Ashok Mittal and is held in the Benami name of Page 5 of 25 Hillcrest Realty SON BHD, Malaysia, and hence the said “Benami Property” is liable to be attached / acquired / confiscated. That, for the sake of easier comprehension, the various PHASES of First transferring the Undisclosed Income / Black Money of Mr. Ashok Mittal from India to Citi Bank Account of his son Mr. Vikram Mittal in Switzerland, and thereafter to bring back the said Undisclosed Income / Black Money of Mr. Ashok Mittal to hold the aforesaid “Benami Transaction/Benami Property” of 28,29,290 Nos. (23,65,000 + 4,64, 290) of 8.5% Redeemable Preference Share of Rs.100/- each of the Indian Company Hotel Queen Road Pvt. Ltd. with aggregating value of Rs.28,29,29,000/- (having present market value of Page 6 of 25 Approx. Rs.450 Crores) vide Share Certificate No. 101 dated 05.05.2003 for 23,65,000 Nos. Preference Shares of Rs. 100 each of value of Rs.23,65,00,000/- and Share Certificate No.102 dated 19.07.2003 for 4,64,290 Nos. Preference Shares of Rs. 100 each, of value of Rs.4,64,29,000/- in the name of fictitious Foreign Equity called Hillcrest Realty SDN. BHD., Malaysia as follows:

 

PHASE 1 That Mr. Ashok Mittal carried on all his businesses dishonestly, in complete disregard of the laws, tax regulations and interests of other stakeholders. Like in his other businesses, he has indulged in these practices in the business of Hotel Queen Road Pvt. Ltd ever since he was appointed as a director on 08.10.2002. As reported in the News Article dated 23.07.2022, the Income Tax officers raided and searched 18 premises of Ashok Mittal across Delhi, Mumbai and Daman. The searches included the locations of the business of Royal Plaza Hotel owned by Hotel Queen Road Pvt. Ltd., Lights Trading and the real estate business of Ashok Mittal. The Central Board of Direct Taxes disclosed the seizure of a large amount of incriminating evidence in the form of hard copy documents and digital data. It was discovered that a large stash of wealth was parked abroad, investments of unaccounted wealth held in Swiss bank accounts were routed back to India through a web of Malaysian companies, neither existence nor profits of the foreign businesses were disclosed by Ashok Mittal. Furthermore, CBDT found that Ashok Mittal’s businesses were involved in out-of-books cash sales in its India operations, unaccounted cash sales to the extent of 50% to 70% of its total sales, undisclosed excess stocks of Rs.30 Crores. In Ashok Mittal’s hospitality business, unaccounted cash sales were detected specifically in the banquet division.

PHASE 2 Shell entities were set up by Mr, Ashok Mittal in Tax Heaven Foreign Country around the year 2003, in the form of Malaysian Companies named Cardiff Limited Malaysia and Hillcrest Reality SDN BHD. Malaysia for the purpose of routing the said Undisclosed Income/Black Money through them, wheeling the tainted monies via his son Mr. Vikram Mittal’s offshore Swiss bank accounts into the Indian Company M/s Hotel Queen Road Pvt. Ltd. These shell entities were set up by Mr. Ashok Mittal with the assistance of Portcullis group and Ben Locknat Daby Seesaram, along with Indian advisors Chartered Accountants Nand Kishore Chaturvedi and Chaturvedi Sohan Lal. 

PHASE 3 Following transfers were made by Mr. Ashok Mittal’s son Mr. Vikram Mittal Bank Account to Cardiff Limited, Malaysia and his name was entered in the books of Cardiff Ltd. as unsecured creditor:

Tranche	Date	Amount	From	To
First	01.04.2003	$ 2501000 (Rs.11.79 Crores)	Vikram Mittal Swiss Account	Cardiff Ltd. (wholly owned Subsidiary of Hillcrest Realty SDN BHD.)
	03.04.2003	$ 2500500 (Rs.11.78 Crores)	Cardiff Ltd. (wholly owned Subsidiary of Hillcrest Realty SDN BHD.)	Hillcrest Realty SDN BHD.
	11.04.2003	$ 2500000 (Rs.11.78 Crores)	Hillcrest Realty SDN BHD.	HOTEL QUEEN ROAD PVT. LTD.
Second	22.04.2003	$ 2501000 (Rs.11.79 Crores)	Vikram Mittal Swiss Account	Cardiff Ltd. (wholly owned Subsidiary of the Hillcrest Realty SDN BHD.)
	21.04.2003	$ 2500500 (Rs.11.78 Crores)	Cardiff Ltd. (wholly owned Subsidiary of Hillcrest Realty SDN BHD. )	Hillcrest Realty SDN BHD.
	24.04.2013	$ 2500000 (Rs.11.78 Crores)	Hillcrest Realty SDN BHD.	HOTEL QUEEN ROAD PVT. LTD.
Third	26.06.2003	$ 999995 (Rs.4.72 Crores)	Vikram Mittal	Cardiff Ltd. (wholly owned Subsidiary of Hillcrest Realty SDN BHD.)
	24.06.2003	$ 1000000 (Rs.4.72 Crores)	Cardiff Ltd. (wholly owned Subsidiary of Hillcrest Realty SDN BHD.)	Hillcrest Realty SDN BHD.
	24.06.2003	$ 1000000 (Rs.4.72 Crores)	Hillcrest Realty SDN BHD.	HOTEL QUEEN ROAD PVT. LTD.

 

Vikram Mittal does not disclose source of investment of 28.29 Crore. The above transfers were disclosed in the letters issued by Mr. Vikram Mittal himself to his collaborators, after making the transfers.

That by the efforts of journalists worldwide to expose the truth including efforts by exposures contained in the database, with investigative journalists like International Consortium of Investigative Journalists (hereinafter called “ICIJ”). After the bulk of the monies had been transferred in April 2003, Ashok Mittal who was earlier acting through fronting entities, installed himself as Director and got the Complainant Mr. R.P. Mittal to sign papers showing him as the second Director of Cardiff Limited; Vikram Mittal issued letters on 16.04.2007 first to ensure that his name was removed from the books of account and disclosures to third party should not reveal his name and second to ensure that he was recorded as the beneficial owner in respect of the unsecured debt in relation to the transfers made by him and that his father Ashok Mittal would have the exclusive authority to deal with the unsecured debt and no other person has any beneficial interest in this;

Investigations revealed the following:-

Cardiff Limited was a shell company that was registered as a Labuan company on February 26, 2003, with its head office located in Labuan, Malaysia, and Company No. LL03634. With the help of the Portcullis Group, the business was registered on February 26, 2003, with an authorised capital of US$ 12,000, consisting of 12,000 shares of US$1, or Rs. 50 in 2003 and Rs. 84 in 2023, respectively. However, the issued share capital of the company was just 1 share of US$1. Cardiff Limited has Portcullis TrustNet (Labuan) Ltd. as its sole stakeholder, holding one share valued at US$1 (equivalent to Rs. 50 in 2003 and Rs. 84 in 2023 alone). Additionally, on the day of its incorporation, Ashok Mittal and a Portcullis entity known as Portcullis Trust (Labuan) Sdn. Bhd. signed a service agreement dated February 26, 2003. By virtue of this agreement, Cardiff Limited was staffed with puppet directors and a secretary who would follow the directives of Ben Locknat Daby Seesaram, Ashok Mittal's front man.

Cardiff Limited was established in accordance with the Malaysian Offshore Companies Act, 1990. An offshore business was required to have a resident director and a resident secretary in accordance with the aforementioned Malaysian statute. A domestic Malaysian company that is 100% owned by a trust company is qualified to hold the positions of secretary and director, in accordance with Sections 87 and 93 of the Malaysian Offshore Companies Act aforementioned Act. Taking advantage of this, on February 26, 2003, when Cardiff Limited was incorporated, two dubious domestic Malaysian private companies—Gurker Sdn Bhd and Sherper Sdn Bhd—that were fully owned by a trust company of the Portcullis Group were installed as resident directors and resident secretaries, respectively.

As will be discussed in more depth below, Cardiff Limited purchased a 100% stake in Hillcrest Realty SDN BHD in March 2003, which was at the time another shell company with Ashok Mittal's backend control. This was done shortly after the company was incorporated. Ashok Mittal's proceeds of crime of Rs.28.29 Crores were transferred through Cardiff Limited in April/June 2003 from Vikram Mittal to its wholly owned subsidiary Hillcrest Realty SDN BHD, shortly after the company's incorporation on February 26, 2003, and shortly after Cardiff Limited had acquired 100% shareholding (i.e., 2 shares of RM 1 each, equal to Rs. 23/- in 2003 and Rs. 38/- INR in 2023) of Hillcrest Realty SDN BHD in March 2003. The majority of the revenues were distributed in April 2003, which coincided with Ashok Mittal's appointment as director of Cardiff Limited. This move was presumably made to further ensure Ashok Mittal's beneficial ownership of the funds transferred through Cardiff Limited.

 It is likely that Ashok Mittal desire to have direct control over the operations when Vikram Mittal's third batch of funds—which came from an unidentified source—went through Cardiff Limited. Vikram Mittal provided the cash for Hotel Queen Road Pvt. Ltd., 28,292,290 (23,65,000 + 4,64,290), 8.5% Redeemable Preference, through the Ashok Mittal-controlled shell companies Cardiff Limited and its fully owned subsidiary Hillcrest Realty SDN BHD. In the name of Hillcrest Realty SDN BHD, 100-rupee shares were issued in two lots: 23,65,000 preference shares valued at Rs. 100 each, totaling Rs. 23,65,00,000 on May 5, 2003, and 4,64,290 preference shares valued at Rs. 100 each, totaling Rs. 4,64,29,000 on July 19, 2003. The people who are complaining say that between April and June 2003, illegal money from crimes was sent through Cardiff Limited. This happened after letters from Vikram Mittal on April 16, 2007, telling Cardiff Limited to remove his name from the book of accounts and replace it with Bamberg Management Inc. This was done so that information could be shared with others while the money stayed in the names of Vikram Mittal and Ashok Mittal in a secret way. These actions seem to have been taken to hide Ashok Mittal's and his son Vikram Mittal's criminal histories. Despite the fact that the complainant, Ram Parshotam Mittal, is listed as a principal on Service Agreement dated February 26, 2003, alongside Ashok Mittal, and that, as of February 26, 2003, he is listed as a director of Cardiff Limited, also with Ashok Mittal, the complainant was neither directly involved in nor aware of the true criminal nature of this entity. After persuading him that these were plans to secure foreign investments in M/s Hotel Queen Road Pvt. Ltd., Ashok Mittal coerced Ram Parshotam Mittal into signing documents. Mittal, who trusted his younger brother, had no reason to suspect that there was any criminal intent involved. Subsequent developments also support the claim that the complainant, Ram Parshotam Mittal, was merely concerned with paper matters.

 Step 2: Hillcrest Reality (Malaysia)

Subtly owned and managed by Ashok Mittal, Hillcrest Realty SDN BHD was created as another shell company. According to pre-planning, it was incorporated barely a few months before Cardiff Limited, the other shell company previously mentioned, was incorporated. However, by February or March 2003, it had become a full subsidiary of Cardiff Limited, just in time for the beginning of the money laundering process in April 2003. Its main goal was to appear in Ashok Mittal's eyes as the holder of 25 28,292,290, 8.5% Redeemable Preference Shares, each worth Rs. 100. Mittal owned and managed the company. So, after Vikram Mittal gave the money from the crime to M/S Hotel Queen Road Pvt. Ltd., 28,292,290 8.5% redeemable preference shares worth 100 rupees each were given to Hillcrest Realty SDN BHD in two groups. These shares had a value of Rs. 28,29,29,000/-. The first lot consisted of 23,65,000 preference shares of Rs. 100/- each, which added up to a value of Rs. 23,65,00,000/- on May 5, 2003, and the second lot consisted of 4,64,290 preference shares of Rs. 100/- each, which added up to a value of Rs. 4,64,29,000 on July 19, 2003. The information revealed that over the course of almost two months, all of these illicit transactions were finished one after the other. On November 22, 2002, Hillcrest Realty SDN BHD was first incorporated with the intention of operating as an investment company. The complainants learned from a number of documents that Hillcrest Realty SDN BHD was incorporated with a share capital of RM 100,000, which was made up of 100,000 shares with a face value of RM 1. But two Malaysian citizens, George Pathmanathan A/L Michael Gandhi Nathan and Francisca Wong Chi Hiong, who were also the company's first directors, only owned two issued shares of RM 1 each, valued at RM2 i.e. roughly Rs. 23 in 2003 and Rs. 38 in 2023.  The total issued capital of the aforementioned company was only RM 2. Also disclosed in the ICIJ Offshore Links database as a director of Portcullis TrustNet (Labuan) Limited is George Pathmanathan, A/L Michael Gandhi Nathan. Ben Locknat Daby Seesaram, the spokesperson for Ashok Mittal (the authorised representative for Cardiff Limited), was named to the Hillcrest Realty SDN BHD board of directors on or about February 20, 2003. The fact that the initial shareholders and directors were merely temporary name lenders or puppets of Ashok Mittal performing their pre-arranged roles is apparent from the fact that, within two months of Hillcrest Realty SDN BHD's incorporation, they transferred their two shares to Cardiff Limited for a total of RM 2, which is equivalent to approximately Rs. 23/- in 2003 and Rs. 38/- in 2023. This was done shortly after the latter company was incorporated on February 26, 2003. It decided to buy all two shares of RM2 each, which is the same as INR23/- in 2003 and INR38/- in 2023, from the original shareholders, George Pathmanathan A/L Michael Gandhi Nathan and Francisca Wong Chi Hiong. The board resolution also gave George Pathmanathan A/L Michael Gandhi Nathan, a director and selling shareholder of Hillcrest Realty SDN BHD, permission to represent Cardiff Limited at all general meetings of Hillcrest Realty SDN BHD, demonstrating the parties' close relationship and preplanning once more. The selling shareholders, George Pathmanathan A/L Michael Gandhi Nathan and Francisca Wong Chi Hiong, who are also directors of Hillcrest Realty SDN BHD, passed a resolution to sell the shares to Cardiff Limited on the same day as the Cardiff resolution, which was March 17, 2003. The three directors—Ben Locknat Daby Seesaram being the third—sign this resolution, together with the two previously mentioned directors. The illegal transfer of proceeds of crime occurred in April/June 2003, immediately following Hillcrest Realty SDN BHD.'s acquisition by Cardiff Limited as its wholly owned subsidiary in March 2003. This allowed for the purchase of 28,292,290, 8.5% redeemable preference shares of Rs. 100 each, with an aggregate INR value of Rs. 28,29,29,000/- in the name of Hillcrest Realty SDN BHD, which Ashok Mittal owned and controlled at the backend.

Step 3: Bamberg Management Inc.'s (Switzerland)

On April 16, 2007, Vikram Mittal wrote to Cardiff Limited c/o Portcullis, instructing them to change his name in the book of accounts to Bamberg Management Inc.'s so that the money could be shared with outside parties while remaining confidential. Vide letters dated 16.04.2007 Vikram Mittal confirmed to Cardiff Ltd. that R P Mittal has no beneficial interest in these remittances of 28.29 Crores and the amount be credited to the Account of Vikram Mittal and to be held by Cardiff to his order exclusively and in the same letters Vikram Mittal authorized his father Ashok Mittal to deal with these amounts in the books of Cardiff Ltd.

Step 4: Aravali Trading LLC (Sharjah)

Afterwards, on November 23, 2022, Bamberg Management Inc. moved the full shareholding—two shares at RM1 each—to an organisation called Aravali Trading LLC, which was established in Sharjah, United Arab Emirates, in an effort to further hide the criminal trails. It's also significant to note that this transfer occurred on November 23, 2022, immediately after the income tax raid in July 2022.

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