Thursday, January 18, 2024

#AshokMittalhotelRoyalPlaza, #BlackMoney, #IncomeTax, #Hillcrest, #TaintedHillcrestInvestment, #NandKishoreChaturvedi

  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/694877440/DOC-20231212-WA0014

 (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.)

Income Tax is likely to charge Ashok Mittal under the stringent Black Money Act for hiding 450 crores of his income from Indian businesses in off-shore companies and re-routing part of it in hotel Royal Plaza.

By Sudhir Ranjan Sen

#AshokMittal is facing probe under the stringent black money act for allegedly hiding income and assets to tune of Rs 450 crores in off-shore companies and illicit investments in hotel Royal Plaza in 2002, Income Tax had informed Delhi High Court in a recent affidavit justifying opening of a LOC against him. https://www.scribd.com/document/694877440/DOC-20231212-WA0014

The IT department, in a recent affidavit filed in the Delhi High Court where a case is going on the Ashok Mittal's petition to quash LOC opened against him in 2012, following income tax raids, said: "Petitioner's (Ashok Mittal) misleading submission that the department has accepted that the Petitioner, Ashok Mittal, was a Non-Resident in AY 2015-16 to AY2018-19. Petitioner's (Ashok Mittal) submissions before this Hon'ble Court during the hearing dated November 16, 2023, that the Petitioner (Mittal) was a non-resident during AY 2015-16 to AY 2018-19 and that such a position has been accepted by the Department by accepting its income tax returns for the said period, are false and misleading." "The petitioner (Ashok Mittal) has referred to its income tax returns for the said assessment years, where it is the petitioner's (Ashok Mittal) self-declaration that he was a non-resident in the said years. The income tax returns originally were only processed under Section 143(1), and there was no assessment in the case of the assessee on the issue of his claim as a non-resident. However, pursuant to the search proceedings in the petitioner's (ashok mittal) case, the case of the petitioner (ashok mittal) is in the process of being reopened under Section 148 for AYs 2015-16 to 2018-19, wherein the respondent (income tax) will reassess his domestic income," it added. https://web.archive.org/web/20240104095528/https://www.ptinews.com/press-detail/IT-claims-Ashok-Mittal-is-a--flight-risk--with-450-crore-undisclosed-overseas-wealth--alleging-his-involvement-with-fugitive-hawala-trader-Nand-Kishore-Chaturvedi-in-a-Rs-50-crore-illicit-investment-in-Hotel-Royal-Plaza-in-2003-/293782

As well as that, the affidavit makes it clear that the respondent (income tax) has concurrent jurisdiction under Sections 3-6 and 10 of the Black Money Act over the petitioner's (Ashok Mittal) hidden foreign assets and income. The Department has also disputed the petitioner's incorrect claim that he was a non-resident during the relevant period, and the Black Money Act proceedings have already begun in his case pursuant to Section 10 of the said Act. This writ petition is about the petitioner's (ashok mittal) wrong claim that he is a non-resident. What is important is the Black Money Act proceedings for the foreign undisclosed income and assets, not the petitioner's (ashok mittal) domestic income. So, it doesn't matter if the Department starts a reassessment proceeding under Section 148 or not; it has nothing to do with the petitioner's (Ashok Mittal) claim as a non-resident and, by extension, it has nothing to do with this writ petition. 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;  https://web.archive.org/web/20240110110654/https://topicsdaily.com/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/

It is further submitted that the petitioner (Ashok Mittal) has himself admitted in his statement recorded on October 21, 2022, u/s. 131(1A) of the Income Tax Act that, as per Section 6(1)(c), he fulfills the criteria of being a resident in the country as he was present in India for 60 days in each of the concerned financial years and for 365 days cumulatively in the preceding four AYs of each concerned year. However, he claimed that he is a non-resident based on Explanation 1 to Section 6(1)(c), wherein in case an individual stays outside India for the purpose of employment, instead of 60 days, the condition of 182 days applies in Section 6(1)(c). The petitioner (Ashok Mittal) claimed that he was employed outside India as a manager in the entities in Dubai, viz., Super Gold Trading DMCC, North West Trading FZC, and Danube Trading FZC. This claim is completely incorrect in light of the following two facts: a. Firstly, the Department has sufficient information from material seized during the search that the petitioner (Ashok Mittal) is the owner of these entities and not an employee. He went to Dubai as an investor and owner of his companies and not as an employee; and b. Secondly, the petitioner (Ashok Mittal), in his statement recorded on January 21, 2022, under Section 13(lA) of the Income Tax Act, admitted that he went to Dubai on a long-term investor visa and not an employment visa. The above makes it evident that the claim of the petitioner (Ashok Mittal) that it was non-resident in the aforementioned AY is completely incorrect and contrary to the provisions of law. https://www.aninews.in/news/national/general-news/i-t-dept-raids-hotel-royal-plazas-chairman-for-stashing-rs-40-crore-abroad20220723165115

 

 Note: For more details, please click on following links, based on media reports.


1..https://ashokmittalhotelplaza.blogspot.com/2023/12/the-media-exposes-fugitive-hawala.html

posted by AshokMittalPlaza @ January 18, 2024   0 Comments

Will Income Tax file cases against Ashok Mittal under the stringent Black Money Act for 450 crores of his benami income held in off-shore companies and re-routing part of it in hotel Royal Plaza in violation of FDI?

  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/694877440/DOC-20231212-WA0014

 (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.)

Will Income Tax file cases against Ashok Mittal under the stringent Black Money Act for 450 crores of his benami income held in off-shore companies and re-routing part of it in hotel Royal Plaza in violation of FDI?

By Ranbir Singh Kapoor

#AshokMittal is facing probe under the stringent black money act for allegedly hiding income and assets to tune of Rs 450 crores in off-shore companies and illicit investments in hotel Royal Plaza in 2002, Income Tax had informed Delhi High Court in a recent affidavit justifying opening of a LOC against him. https://www.scribd.com/document/694877440/DOC-20231212-WA0014

The IT department, in a recent affidavit filed in the Delhi High Court where a case is going on the Ashok Mittal's petition to quash LOC opened against him in 2012, following income tax raids, said: "Petitioner's (Ashok Mittal) misleading submission that the department has accepted that the Petitioner, Ashok Mittal, was a Non-Resident in AY 2015-16 to AY2018-19. Petitioner's (Ashok Mittal) submissions before this Hon'ble Court during the hearing dated November 16, 2023, that the Petitioner (Mittal) was a non-resident during AY 2015-16 to AY 2018-19 and that such a position has been accepted by the Department by accepting its income tax returns for the said period, are false and misleading." "The petitioner (Ashok Mittal) has referred to its income tax returns for the said assessment years, where it is the petitioner's (Ashok Mittal) self-declaration that he was a non-resident in the said years. The income tax returns originally were only processed under Section 143(1), and there was no assessment in the case of the assessee on the issue of his claim as a non-resident. However, pursuant to the search proceedings in the petitioner's (ashok mittal) case, the case of the petitioner (ashok mittal) is in the process of being reopened under Section 148 for AYs 2015-16 to 2018-19, wherein the respondent (income tax) will reassess his domestic income," it added. https://web.archive.org/web/20240104095528/https://www.ptinews.com/press-detail/IT-claims-Ashok-Mittal-is-a--flight-risk--with-450-crore-undisclosed-overseas-wealth--alleging-his-involvement-with-fugitive-hawala-trader-Nand-Kishore-Chaturvedi-in-a-Rs-50-crore-illicit-investment-in-Hotel-Royal-Plaza-in-2003-/293782

As well as that, the affidavit makes it clear that the respondent (income tax) has concurrent jurisdiction under Sections 3-6 and 10 of the Black Money Act over the petitioner's (Ashok Mittal) hidden foreign assets and income. The Department has also disputed the petitioner's incorrect claim that he was a non-resident during the relevant period, and the Black Money Act proceedings have already begun in his case pursuant to Section 10 of the said Act. This writ petition is about the petitioner's (ashok mittal) wrong claim that he is a non-resident. What is important is the Black Money Act proceedings for the foreign undisclosed income and assets, not the petitioner's (ashok mittal) domestic income. So, it doesn't matter if the Department starts a reassessment proceeding under Section 148 or not; it has nothing to do with the petitioner's (Ashok Mittal) claim as a non-resident and, by extension, it has nothing to do with this writ petition. 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;  https://web.archive.org/web/20240110110654/https://topicsdaily.com/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/

It is further submitted that the petitioner (Ashok Mittal) has himself admitted in his statement recorded on October 21, 2022, u/s. 131(1A) of the Income Tax Act that, as per Section 6(1)(c), he fulfills the criteria of being a resident in the country as he was present in India for 60 days in each of the concerned financial years and for 365 days cumulatively in the preceding four AYs of each concerned year. However, he claimed that he is a non-resident based on Explanation 1 to Section 6(1)(c), wherein in case an individual stays outside India for the purpose of employment, instead of 60 days, the condition of 182 days applies in Section 6(1)(c). The petitioner (Ashok Mittal) claimed that he was employed outside India as a manager in the entities in Dubai, viz., Super Gold Trading DMCC, North West Trading FZC, and Danube Trading FZC. This claim is completely incorrect in light of the following two facts: a. Firstly, the Department has sufficient information from material seized during the search that the petitioner (Ashok Mittal) is the owner of these entities and not an employee. He went to Dubai as an investor and owner of his companies and not as an employee; and b. Secondly, the petitioner (Ashok Mittal), in his statement recorded on January 21, 2022, under Section 13(lA) of the Income Tax Act, admitted that he went to Dubai on a long-term investor visa and not an employment visa. The above makes it evident that the claim of the petitioner (Ashok Mittal) that it was non-resident in the aforementioned AY is completely incorrect and contrary to the provisions of law. https://www.aninews.in/news/national/general-news/i-t-dept-raids-hotel-royal-plazas-chairman-for-stashing-rs-40-crore-abroad20220723165115

 

 Note: For more details, please click on following links, based on media reports.


1..https://ashokmittalhotelplaza.blogspot.com/2023/12/the-media-exposes-fugitive-hawala.html

posted by AshokMittalPlaza @ January 18, 2024   0 Comments

#Hillcrest, #TaintedHillcrest, #NCLT, #NandKishoreChaturvedi, #ProceedofCrime, #illicitinvestments, #hotelroyalplaza

 harat Jeetega, Corruption Meetega!

PUBLIC INVESTIGATION

EXPOSE ON THE MAJOR HAWALA RACKET IN INDIA

Key players: #NandKishoreChaturvedi and #AshokMittal (Note: All facts and documents are public and submitted in court. Link of the key document is 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

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

RP Mittal request NCLT to restore Hotel Royal Plaza's original share holdings after foreign investor Hillcrest 20- years term ended & also having a close link with NandKishore Chaturvedi, wanted hawala dealer & Ashok Mittal

By Anant Goenka

#RPMittal, the owner of #HotelRoyalPlaza who was illegally ousted by his younger brother #AshokMittal in 2007, has requested #NCLT (National Company Law Tribunal) to immediately restore the original share-holding pattern of the hotel's holding company (99% share belong to him and family members) due to drastic change in the circumstances. Firstly,  #AshokMittal and #NandKishoreChaturvedi's off-shore company #Hillcrest which had invested to a tune of Rs 29 crores in 2003 to buy preference shares for 20-year period terms in the hotel's parent have ended this year. This investment facilitated their control over hotel's management and operations, which still continues. Secondly the Income Tax (IT) has recently found vital documentary evidences (paper trail of money routed) that the Hillcrest is a tainted company, funded by black money laundered by Ashok Mittal, his son Vikram Mittal and Nand Kishore Chaturvedi. The company has no business of it's own but was created only to route owners' black money in the hotel for illegally grabbing it and also evade taxes.

The Income Tax has already raided Hotel Plaza and Ashok Mittal's other businesses in 2022 and opened a LOC (Look Out Circular), fearing his escape. https://economictimes.indiatimes.com/news/india/i-t-dept-raids-hotel-royal-plazas-chairman-for-stashing-rs-40-crore-abroad/articleshow/93074759.cms; 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; https://www.indiatoday.in/india/story/income-tax-dept-raids-hawala-operator-nandkishore-chaturvedi-entities-several-states-2390183-2023-06-08

This has led to a significant loss of trust and confidence in the hotel's management and operations. This development has come after the Enforcement Directorate (ED) and IT authorities found that Ashok Mittal and Nand Kishore Chaturvedi have significant ties, especially with Hillcrest Realty, a Malaysia-based company that invested in Hotel Plaza through the FDI route. Through Hillcrest and the illegal issuing rights of equity shares, the duo have managed to ouster the majority equity holder, R. P. Mittal, from the hotel. This has allowed them to gain control over the hotel's operations and assets.

R. P. Mittal and his family members have contested the illegal equity share allocation before the NCLT. They have demanded the immediate dissolution of the current board and the appointment of administrators to run the hotel's affairs. And also to restore the original share patterns in which they had majority shares. Hillcrest's 20-year term expiring in 2023 has strengthened their case, and the fact that it is a Benami company and its investment is suspect makes it likely that the government will seize it. This could lead to a significant shift in the balance of power and control within the company.

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

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

 

 KEYWORDS: #AshokMittal, #AshokKumarMittal, #AshokMittalHotelRoyalPlaza, #RoyalPlazaDelhi, #HotelRoyalPlazaDelhi, #NandKishoreChaturvedi, #PushpakBillion, #BlackMoney, #Hawala, #Hillcrest, #NCLT, #IncomeTax, #EnforcementDirectorate, #IT, ITraids, ITraidhotelplaza, #proceedofcrime, #pmla, #uddhavthackeray, #moneylaundring, #indimostwantedhawaladealer, #HillcrestRealty, #LOC, #AshokMittalLOC, #LOCAshokMittal

posted by AshokMittalPlaza @ January 18, 2024   0 Comments

Will NCLT restore Hotel Royal Plaza's original share holdings after foreign investor Hillcrest 20- years term ended & its close link to NandKishore Chaturvedi, wanted hawala dealer & Ashok Mittal?

 harat Jeetega, Corruption Meetega!

PUBLIC INVESTIGATION

EXPOSE ON THE MAJOR HAWALA RACKET IN INDIA

Key players: #NandKishoreChaturvedi and #AshokMittal (Note: All facts and documents are public and submitted in court. Link of the key document is 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

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

Will NCLT restore Hotel Royal Plaza's original share holdings after foreign investor Hillcrest 20- years term ended & its close link to NandKishore Chaturvedi, wanted hawala dealer & Ashok Mittal?

By Subhash Tandon

#RPMittal, the owner of #HotelRoyalPlaza who was illegally ousted by his younger brother #AshokMittal in 2007, has requested #NCLT (National Company Law Tribunal) to immediately restore the original share-holding pattern of the hotel's holding company (99% share belong to him and family members) due to drastic change in the circumstances. Firstly,  #AshokMittal and #NandKishoreChaturvedi's off-shore company #Hillcrest which had invested to a tune of Rs 29 crores in 2003 to buy preference shares for 20-year period terms in the hotel's parent have ended this year. This investment facilitated their control over hotel's management and operations, which still continues. Secondly the Income Tax (IT) has recently found vital documentary evidences (paper trail of money routed) that the Hillcrest is a tainted company, funded by black money laundered by Ashok Mittal, his son Vikram Mittal and Nand Kishore Chaturvedi. The company has no business of it's own but was created only to route owners' black money in the hotel for illegally grabbing it and also evade taxes.

The Income Tax has already raided Hotel Plaza and Ashok Mittal's other businesses in 2022 and opened a LOC (Look Out Circular), fearing his escape. https://economictimes.indiatimes.com/news/india/i-t-dept-raids-hotel-royal-plazas-chairman-for-stashing-rs-40-crore-abroad/articleshow/93074759.cms; 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; https://www.indiatoday.in/india/story/income-tax-dept-raids-hawala-operator-nandkishore-chaturvedi-entities-several-states-2390183-2023-06-08

This has led to a significant loss of trust and confidence in the hotel's management and operations. This development has come after the Enforcement Directorate (ED) and IT authorities found that Ashok Mittal and Nand Kishore Chaturvedi have significant ties, especially with Hillcrest Realty, a Malaysia-based company that invested in Hotel Plaza through the FDI route. Through Hillcrest and the illegal issuing rights of equity shares, the duo have managed to ouster the majority equity holder, R. P. Mittal, from the hotel. This has allowed them to gain control over the hotel's operations and assets.

R. P. Mittal and his family members have contested the illegal equity share allocation before the NCLT. They have demanded the immediate dissolution of the current board and the appointment of administrators to run the hotel's affairs. And also to restore the original share patterns in which they had majority shares. Hillcrest's 20-year term expiring in 2023 has strengthened their case, and the fact that it is a Benami company and its investment is suspect makes it likely that the government will seize it. This could lead to a significant shift in the balance of power and control within the company.

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

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

 

 KEYWORDS: #AshokMittal, #AshokKumarMittal, #AshokMittalHotelRoyalPlaza, #RoyalPlazaDelhi, #HotelRoyalPlazaDelhi, #NandKishoreChaturvedi, #PushpakBillion, #BlackMoney, #Hawala, #Hillcrest, #NCLT, #IncomeTax, #EnforcementDirectorate, #IT, ITraids, ITraidhotelplaza, #proceedofcrime, #pmla, #uddhavthackeray, #moneylaundring, #indimostwantedhawaladealer, #HillcrestRealty, #LOC, #AshokMittalLOC, #LOCAshokMittal

posted by AshokMittalPlaza @ January 18, 2024   0 Comments

#AshokMittal, #AshokKumarMittal, #AshokMittalHotelRoyalPlaza, #RoyalPlazaDelhi, #HotelRoyalPlazaDelhi, #NandKishoreChaturvedi, #PushpakBillion, #BlackMoney, #Hawala, #Hillcrest, #NCLT, #IncomeTax, #EnforcementDirectorate, #IT, ITraids, ITraidhotelplaza, #proceedofcrime, #pmla, #uddhavthackeray, #moneylaundring, #indimostwantedhawaladealer

  Bharat Jeetega, Corruption Meetaga!

PUBLIC INVESTIGATION

EXPOSE ON INDIA'S MAJOR HAWALA RACKET 

Key players: #NandKishoreChaturvedi and #AshokMittal (Note: All facts and documents are public and submitted in court. The link of key document is 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

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

Ashok Mittal could loose Hotel Royal Plaza's control on the ground of multiple violations of laws

By Anuradha Raman

RP Mittal, owner of #HotelRoyalPlaza has filed petition filed before the NCLT (National Company Law Tribunal) requesting that the hotel's holding company, the board of Queen Road Private Limited (QRPL) should be immediately reconstituted and taken over by administrators, as the present one is illegal. It had alleged that the current board is not in compliance with the Companies Act, directions passed by the High Court and Supreme Court, and is not acting in the best interests of the company. https://medium.com/@digitalscoopindia/delhi-high-court-upholds-loc-black-money-launderer-ashok-mittal-of-hotel-royal-plaza-2ba3dbce58fa

#RPMittal claims #AshokMittal, one of the shareholders, illegally issued and subscribed to equity shares to increase his stakes in the Hotel Royal Plaza (QRPL) by illegally allotting equity shares against the sub-judice Right Entitlement of  81,01,648 equity shares which ultimately held to be invalid by order dated 31.05.2013 of Delhi High Court and order dated10.05.2019 of Supreme Court. This illegal allotment was in the violation of Delhi High Court and Supreme Court judgement in the case. https://www.republicworld.com/business/industry/nclt-to-rule-on-fate-of-historic-royal-plaza-hotel-in-ownership-dispute.news Another key development that has necessitated a change in the company's equity structures and therefore the urgent need to reconstitute the company's present board of directors is the end of the 20-year-term of major investor Hillcrest Realty, a Malaysia-based company holding 8.5% of redeeembale preference shares. The twin developments have necessitated drastic changes in the QRPL's share holding pattern, rendering the present board ineffective in managing the company's affairs.

 (1) R P Mittal and his wife Sarla Mittal sought the following Main Prayers in IA No.383 of 2023 in CP No.992/2005: (1)To direct the restoration of the appointment of Mr. R.P. Mittal (DIN No.00020109) and Mrs. Sarla Mittal (DIN No.00021390), who were illegally removed at the behest of M/s Hillcrest Reality SDN. BHD which was Appellant in CO.A.(SB) 4 of 2006)on the strength of 75.86% Voting Rights illegally acquired by M/s Hillcrest Reality SDN. BHD. 

2) To direct the removal of the Directors of the Company namely Mr. Prashant Om Sharma (DIN:00879685), Mr. Sushil Kumar Jain (DIN:00350305), Mr. Indraj Serohiwal (CFO)(PAN:AATPS4731R), Mr. Satish Chander Gupta (DIN: 00025780), who were appointed by the Company namely M/s Hillcrest Reality SDN. BHD (which was the Appellant in CO.A.(SB) 4 of 2006) on the strength of 75.86% Voting Rights illegally acquired by M/s Hillcrest Reality SDN. BHD, and the said M/s Hillcrest Reality SDN. BHD have now ceased to be the Preference Shareholders of the Company Hotel Queen Road Ltd. w.e.f. 20.07.2023 and consequently the said M/s Hillcrest Reality SDN. BHD ceased to have any voting rights in the Company Hotel Queen Road Ltd. w.e.f. 20.07.2023.

 (3) To direct the appointment of Administrator / Special Officer for the Management and Control of the Affairs / Operations of the Company Hotel Queen Road Ltd. on such terms and conditions as may be stipulated by this Hon’ble Tribunal with direction to file Monthly / Quarterly Progress Report before this Hon’ble Tribunal.

 (4) To direct the cancellation of Allotment of Right issue of 1,00,00,003 Nos. Equity Shares allotted by M/s Hotel Queen Road Pvt. Ltd. to Mr. Ashok Mittal and Cancellation of Allotment of the Right issue of 5,815 Nos. Equity Shares allotted by M/s Hotel Queen Road Pvt. Ltd. to 8 other persons out of the Right Entitlements of 1,35,29,752 Nos. of Equity Shares (81,01,648 x 1.67) in respect of the Sub-judice Allotments of 81,101,648 Nos. Equity Shares and Sub-judice Transfer of 32,88,181 Nos. Equity Shares (as mentioned in Para No.8.B. of Letter of Offer dated 30.07.2009) which were ultimately cancelled by Hon’ble Delhi High Court vide Order dated 31.05.2013 which was upheld by Order dated 10.05.2019 of Hon’ble Supreme Court of India.

(5) To direct the cancellation of 88,00,000 Nos. of Equity Shares transferred on 09.09.2013 by Mr. Ashok Mittal out of illegal Allotments of 1,00,00,003 Nos. of Right Equity Shares (comprising of 60,00,000 Equity Shares transferred by Mr. Ashok Mittal to his Company Litolier Finance Limited, 5,00,000 Equity Shares transferred by Mr. Ashok Mittal to his son Mr.Vikram Mittal, 5,00,000 Equity Shares transferred by Mr. Ashok Mittal to his daughter Mrs.Ruchi Mittal, 13,00,000 Equity Shares transferred by Mr. Ashok Mittal to his wife Mrs.Nirupama Mittal and 5,00,000 Equity Shares transferred by Mr. Ashok Mittal to Ashok Mittal HUF).

On account of the changes in the Shareholdings of Hotel Queen Road Pvt. Ltd., and also due to subsequent developments including the developments which took place on 05.05.2023 and 19.07.2023, RP Mittal and his wife Sarla Mittal have filed the application under Rule 11 of NCLT Rules 2016 seeking variation / modification of the direction contained in para 51 of the Order dated 31.05.2013 passed by Hon’ble Delhi High Court in CO.A.(SB) 4 of 2006 with CO.A. (SB) 5 of 2006 and CO.A. (SB) 10 of 2006, pursuant to the specific liberty granted to the parties vide para 51 of the said Order dated 31.05.2013  (which was upheld by Hon’ble Supreme Court of India vide Para 89 of Order dated 10.05.2019 and also for passing appropriate urgent Interim Orders. The

Para 51 of the Order dated 31.05.2013 is reproduced as under:-

Para 51

"51. The question next is of consequential relief. Pursuant to the orders of the DB as confirmed by the Supreme Court, the management of HQR is presently with the appellants in Co. Appeal (SB) No. 4 of 2006. They are also presently the majority shareholders. In light of the changed circumstances, the Court directs that status quo will be maintained as regards the BoD as well as the shareholding of HQR till such time the suits concerning the status of HQR as a private or public limited company are finally decided. The parties are, however, at liberty to seek any variation or modification of this direction from the court in which the suits are pending."

The Para 89 of Order dated 10.05.2019 of Hon’ble Supreme Court of India is reproduced as under:-

Para 89

"In the fact and circumstances of the case, taking into consideration the overall scenario, the impugned order calls for no interference. However, direction to prosecute appellant Ram Prashotam Mittal in the facts of the case is set aside.

(3) RP Mittal clarified that vide para 51 of the Order dated 31.05.2013 which is confirmed vide Para 89 of the Order dated 10.05.2019 of Hon’ble Supreme Court of India, NCLT has been empowered to allow variation or modification of the existing directions and pass appropriate orders directing the changes in the constitution of the Board of Directors of Hotel Queen Road Pvt. Ltd. on account of the changed circumstances including due to change in the Shareholdings of Hotel Queen Road Pvt. Ltd. pursuant to the passing of the Order dated 31.05.2013 by Hon’ble Division Bench of Delhi High Court (which is confirmed by the Order dated 10.05.2019 of the Hon’ble Supreme Court of India) setting aside the Order dated 31.05.2006 of the Hon’ble Company Law Board and also due to subsequent developments of Hillcrest Realty Sdn. Bhd. ceasing to hold any Preference Shares and also ceasing to hold any Voting Rights in Hotel Queen Road Pvt. Ltd vide Order dated 15.10.2008 , Order dated 24.10.2008 Order dated 14.01.2009 and Order dated 20.07.2009, the Directors appointed at the behest of Hillcrest Reality Sdn. Bhd., Malaysia (which had acquired 75.86% Voting Rights in Hotel Queen Road Pvt. Ltd.) were allowed to Control and Manage the Affairs and Operations of Hotel Queen Road Pvt. Ltd. and presently from 20.07.2023 Hillcrest Reality Sdn. Bhd. Malaysia ceased to hold any Preference Shares and also ceased to hold any Voting Rights in Hotel Queen Road Pvt. Ltd.

SEQUENCE OF EVENTS

As per R P Mittals' Shareholdings of Hotel Queen Road Private Limited at the time of its acquisition in 2002 was as under:-

S.NO.

SHAREHOLDERS

NO. OF SHARES

% OF SHARES

% OF VOTING RIGHTS

1.

EQUITY SHAREHOLDERS

 

 

 

i.

Ram Parshotam Mittal Group

89,81,93

99.99%

99.99%

ii.

Ashok Mittal Group & Others

159

0.01%

0.01%

 

TOTAL

8,98,352

100%

100%

 

Thereafter Hotel Queen Road Private Limited allotted 28,29,290 Nos.8.5% redeemable Preference Shares of Rs.100/- each in total aggregating to Rs.28.29 Crores on 05.05.2003 (and 19.07.2003 to Hillcrest Realty Sdn. Bhd., Malaysia which were redeemable after expiry of 20 years. The funds of Rs.28.29 Crores invested by Hillcrest Reality Sdn. Bhd., Malaysia for a acquisition of these Preference Shares are alleged to be "Proceeds of Crime" due to coming under scanner of Income Tax authorities in 2022 for Ashok Mittal partnership NandKishore Chaturvedi, India's most wanted hawala dealer.

Thereafter vide Board Resolutions dated 27.07.2004, 07.01.2005 and 10.05.2005, Hotel Queen Road Private Limited allotted additional 81,01,648 Nos. of Equity Shares to Ram Parshotam Mittal Group (comprising of 23,90,000 Nos. plus 41,51,648 Nos. of Equity Shares to Moral Trading and Investment Limited , 4,50,000 Nos. to Mrs. Sarla Mittal, 1,10,000 Equity Shares to Mr. Ram Parshotam Mittal and 10,00,000 Nos. of Equity Shares to Pondy Metals and Rolling Mills Pvt. Ltd.). There was also inter transfer of 32,88,181 Nos. of Equity Shares from Moral Trading and Investment Ltd. to Mr. Ram Parshotam Mittal,

The additional allotments of 81,01,648 Nos. of Equity Shares and inter transfer of 32,88,181 Nos. of Equity Shares were disputed/ challenged by Hillcrest Realty Sdn. Bhd., Malaysia and Mr. Ashok Mittal by filing CP No. 64 of 2005 before Hon’ble Company Law Board which was disposed of by Order dated 31.01.2006  of the said Order the Hon’ble Company Law Board held "the said additional allotment and inter transfer of Equity Shares to be legal & valid.

Thereafter, under the garb of claiming Voting Rights under Section 87(2) of the Companies Act, M/s Hillcrest Reality Sdn. Bhd., Malaysia issued Notices dated 01.06.2005, 28.06.2005, 08.07.2005 and 18.07.2005 proposing to convene, addressed to Hotel Queen Road Pvt. Ltd. proposing to convene Extraordinary General Meeting on 04.08.2005 to remove Mr. Ram Parshotam Mittal and Mrs. Sarla Mittal from the Directorships of Hotel Queen Road Private Limited and to illegally appoint Mr. J.K. Gupta,) and Mr. Vikram as Directors of Hotel Queen Road Private Limited. The said Notices were challenged by Hotel Queen Road Private Limited by filing CS(OS) 992 of 2005 before Hon’ble Delhi High Court and vide Para 16 of the Interim Order dated 12.08.2005 (, "the said EGM on 04.08.2005 was held to be illegal, and resolution passed for removal of Mr. Ram Parshotam Mittal and Mrs. Sarla Mittal from the Directorships of Hotel Queen Road Private Limited and for appointment Mr. J.K. Gupta and Mr. Vikram as Directors of Hotel Queen Road Private Limited was held to be ineffective and Hillcrest Realty Sdn. Bhd. was restrained from giving any effect to such resolution passed in EGM held on 04.08.2005".

RP Mittal claims that from 2002 till 14.10.2008, the affairs and operations of the Company Hotel Queen Road Pvt. Ltd. were allowed to be controlled and managed by Directors of Ram Parshotam Mittal Group comprising of Mr. Ram Parshotam Mittal as its Director/ Chairman and Mrs. Sarla Mittal as its Director under specific directions of the Hon’ble Delhi High Court vide Order dated 12.08.2005.

 The order dated 12.08.2005 of Hon’ble Delhi High Court was vacated vide Order dated 15.10.2008, Order dated 24.10.2008 and Order dated 14.01.2009 passed by Hon’ble Delhi High Court read with Order dated 20.07.2009 passed by Hon’ble Supreme Court of India, and vide these orders M/s Hillcrest Reality Sdn. Bhd., Malaysia was given Voting Rights (75.86%) in Hotel Queen Road Pvt. Ltd. and the Affairs and Operations of the Company M/s Hotel Queen Road Pvt. Ltd. were allowed to be Controlled and Managed by Hillcrest Reality Sdn. Bhd., Malaysia.

The order dated 31.01.2006 of Hon’ble Company Law Board was challenged by Hillcrest Reality Sdn. Bhd., Malaysia, Mr. Ashok Mittal and M/s Hotel Queen Road Pvt. Ltd. before Hon’ble Delhi High Court in three Company Appeal Nos. COA (SB) 4 of 2006, CO A (SB) 5 of 2006 and CO.A.(SB) 10 of 2006. However, during the pendency of the aforesaid three Company Appeals and vide Letters of Offers dated 30.07.2009 Hotel Queen Road Pvt. Ltd. illegally offered Right Issue of 1,50,30,003 Equity Shares of Rs.10/- each for cash at price of Rs.40/- per shares including a premium of Rs.30/- per Equity Shares aggregating to a value of Rs.60,12,00,120/- to the existing Equity Shareholders in the ratio of 1.67:1 Equity Shares for every one Equity Share on 90,00,000 Nos. of Equity Shares (90,00,000 x 1.67=1,50,30,003 Equity Shares) held in records of Hotel Queen Road Pvt. Ltd. on 29.07.2009.

Vide Para 8 B of the Letters of Offer dated 30.07.2009 it was mentioned that the additional allotments and transfers of the following Equity Shares is SUBJUDICE before the Hon’ble Delhi High Court and the right entitlement on these rights offered is without prejudice to pending Company Appeals (SB) Nos.4, 5 and 10 of 2006.

Details of Sub-judice Allotments

Date of Allotment

Name of Allottee

No. of Equity Shares allotted.

27.07.2004

Moral Trading and Investment Limited

23,90,000

07.01.2005

Moral Trading and Investment Limited

41,51,648

07.01.2005

Sarla Mittal

4,50,000

07.01.2005

R.P. Mittal

1,10,000

10.05.2005

Pondy Metals and Rolling Mills Pvt. Ltd.

10,00,000

 

TOTAL

81,01,648

 

Details of Sub-judice Transfer of Shares

Date of Registration of Transfer

No. of Shares Transferred

Transferor

Transferee

10.05.2005

32,88,181

Moral Trading and Investment Limited

R.P. Mittal

 

RP Mittal claims that the offer of Right Entitlement on Sub-judice Allotments of 81,01,648 calculated in the ratio of 1.167 comes to 1,35,29,752 Nos. of Equity Shares (i.e. 81,01,648 x 1.67). He claims that since the offer of Right Entitlement of 1,35,29,752/- Nos. of Equity Shares (81,01,648 x 1.67) was Sub-Judice without prejudice and subject to the final outcome of pending Company Appeals (SB) No.4,5 and 10 of 2006, which meant that if in the pending three Appeals, the additional allotments of 81,01,648 Nos. of Equity Shares is held to be valid, then the offer of Right Entitlement of 1,35,29,752 Nos. of Equity Shares (i.e. 81,01,648 x 1.67) on Sub-judice allotments of 81,01,648 Nos. of Equity Shares shall be legal and valid and hence Equity Shares subscribed and allotted against the Right Entitlement of 1,35,29,752 Nos. of Equity Shares (i.e. 81,01,648 x 1.67) shall be legal andvalid. He also claims that if in the pending three Appeals, the additional allotments of 81,01,648 Nos. of Equity Shares is held to be illegal and invalid, then the offer of Right Entitlement of 1,35,29,752 Nos. of Equity Shares (i.e. 81,01,648 x 1.67) on Sub-judice allotments of 81,01,648 Nos. (i.e.81,01,648 x 1.67) shall be illegal and invalid and hence Equity Shares subscribed and allotted against the Right Entitlement of 1,35,29,752 Nos. of Equity Shares (i.e. 81,01,648 x 1.67) shall be illegal and invalid.

RP Mittal claims that when the additional allotments of 81,01,648 Nos. Equity Shares and transfers of 32,81,181 Equity Shares as mentioned herein above were Sub-judice before Hon’ble Delhi High Court, therefore the said Letters of Offer dated 30.07.2009 of Right Issue of Equity Shares offering Right Issue entitlement of 1,35,29,752 Nos. of Equity Shares (i.e. 81,01,648 x 1.67) on Sub-Judice allotments of 81,01,648 Nos. of Equity Shares could not have been legally and validly offered and issued by Hotel Queen Road Pvt. Ltd.. He further claims that since the said Legal position, the said Letters of Offer dated 30.07.2009 of Right Issue of Shares were ipso facto illegal and null and void in the eyes of law. In this background Ram Parshotam Mittal Group did not subscribe to the said illegal Right Issue of Shares.

RP Mittal and family members had without filing any independent Suit, filed an Interim Application IA No.9920/2009 in CS (OS) No. 1832 of 2008 (under Order 39 Rule 1 and 2 read with Section 151 CPC) for "Staying rights offer issue dated 30.07.2009 and restraining / injuncting Hotel Queen Road Pvt. Ltd., Hillcrest Realty Sdn. Bhd. and Mr. Ashok from going ahead in any manner with their proposed rights offer issue dated 30.07.2009". The said IA No.9920/2009 in CS (OS) 1832 of 2008 was contested on the ground of maintainability, but vide Order dated 18.08.2009 the Hon’ble Delhi High Court declined to grant any temporary injunction under Order 39 Rule 1.

The Order dated 18.08.2009 of the Hon’ble Delhi High Court was challenged by filing an Appeal being FA (OS) No.349 of 2009 and CM Nos. 11625 of 2009, 5564-55565 /2010. However the said Appeal against Interim Order dated 18.08.2009 was withdrawn by Ram Parshotam Mittal Group as they were desirous of approaching the Company Law Board by filing an Independent Petition to get the Substantial Issue of "Declaration that the right issue of 60,12,00,120 for 15,00,003 Equity Shares is illegal, null and void and Declaration that equity shares sought to be subscribed and allotted by Hotel Queen Road Pvt. Ltd. in the right issue dated 30.07.2009 to Ashok Mittal are illegal, null and void", Finally decided vide Order dated 20.04.2010 passed by Hon’ble Delhi High Court, the above Appeal was allowed to be withdrawn..

RP Mittal claims that without giving any cognizance to the fact that the aforesaid issue of allotments of additional 81,01,648 Nos. of Equity Shares and transfer of 32,88,181 Nos. Equity Shares are SUBJUDICE before Hon’ble Delhi High Court in three Company Appeals being COA (SB) 4 of 2006, CO.A (SB) 5 of 2006 and CO.A. (SB) 10 of 2006, M/s Hotel Queen Road Pvt. Ltd. under instructions of Ashok Mittal illegally proceeded to allot on 22.08.2009, 100,00,003 Right Equity Shares to Mr.Ashok Mittal and 5815 Right Equity Shares to 8 other Shareholders out of the Right Entitlement of 1,35,29,752 Nos. of Equity Shares (i.e. 81,01,648 x 1.67). on Sub-Judice allotments of 81,01,648 Nos. of Equity Shares.

Ram Parshotam Mittal and his family filed an Independent Petition being CP No.47 of 2010 before the Hon’ble Company Law Board seeking various reliefs along with the main relief of "Declaration that the right issue of 60,12,00,120 for 15,00,003 Equity Shares is illegal, null and void and Declaration that equity shares sought to be subscribed and allotted by Hotel Queen Road Pvt. Ltd. in the right issue dated 30.07.2009 to Ashok Mittal are illegal, null and void". The Order dated 31.01.2006 of the Hon’ble Company Law Board was set aside by the Hon’ble Delhi High Court vide Order dated 31.05.2013 by Hon’ble Delhi High Court. In Para 48 and 51 of the Order dated 31.05.2013 it was held as under:-

"48. The upshot of the above discussion is that the impugned decision of the CLB upholding the validity of the Board resolutions dated 27thJuly 2004, 7thJanuary 2005 and 10thMay 2005 cannot be sustained in law. To that extent Co. Appeal (SB) No.4 of 2006 is allowed.

51. The question next is of consequential relief. Pursuant to the orders of the DB as confirmed by the Supreme Court, the management of HQR is presently with the appellants in Co. Appeal (SB) No. 4 of 2006. They are also presently the majority shareholders. In light of the changed circumstances, the Court directs that status quo will be maintained as regards the BoD as well as the shareholding of HQR till such time the suits concerning the status of HQR as a private or public limited company are finally decided. The parties are, however, at liberty to seek any variation or modification of this direction from the court in which the suits are pending."

RP Mittal claims that subsequent to the passing of order dated 31.5.2013 by Hon’ble Delhi High Court, Mr. Ashok Mittal had (in violation of Para 51 of the Order dated 31.05.2013) on 9.9.2013 out of his illegal allotment of 1,00,00,003 Nos. of Right Issue Equity Shares illegally transferred 88,00,000 Nos. of Equity Shares comprising of 60,00,000 Equity Shares to his Company Litolier Finance Limited, 5,00,000 Equity Shares to his son Mr. Vikram Mittal, 5,00,000 Equity Shares to his daughter Ms. Ruchi Ashok Mittal, 13,00,000 Equity Shares to his wife Mrs. Nirupama Mittal and 5,00,000 Equity Shares to Ashok Mittal HUF.

The order dated 31.05.2013 of the Hon’ble Delhi High Court was upheld by Hon’ble Supreme Court of India vide Order dated 10.05.2019 passed in Civil Appeal Nos.3934, 3935 of 2017 by holding in Para No. 89 that "In the fact and circumstances of the case, taking into consideration the overall scenario, the impugned order calls for no interference."

RP Miital claims that effect of the Order dated 31.05.2013 of the Hon’ble Delhi High Court (which was upheld by the Hon’ble Supreme Court of India vide Order dated 10.05.2019) is that the aforesaid additional allotments of 81,01,648 Nos. Equity Shares and Transfer of 32, 88,181 Nos. Equity Shares of M/s Hotel Queen Road Pvt. Ltd. (including Right Entitlement of 1,35,29,752/- Nos. of Equity Shares (81,01,648 x 1.67) on the said Sub-Judice allotments of 81,01,648 Nos. of Shares were held to be illegal and stood cancelled.

He also claims that order dated 31.05.2013 of Hon’ble High Court offer of Right Issue of 1,50,00,000,3 Nos. of Equity Shares vide Letter of Offer dated 30.07.2009, and thereafter the allotments of 100,00,003 Right Equity Shares to the said Mr. Ashok Mittal, and 5815 Right Equity Shares to 8 other Shareholders on 22.08.2009 out of Right Entitlement of 1,35,29,752 Nos. of Equity Shares (81,01,648 x 1.67) on Sub-Judice allotments of 81,01,648 Nos. of Equity Shares became ipso – facto illegal, null and void in the eyes of law and hence 1,00,00,003 rights equity shares allotted to Ashok Mittal and family members are automatically cancelled.

RP Mittal claims that vide Order dated 15.10.2008, Order dated 24.10.2008, Order dated 14.01.2009 and Order dated 20.07.2009, the Directors appointed at the behest of Hillcrest Reality Sdn. Bhd., Malaysia (which had acquired 75.86% Voting Rights in Hotel Queen Road Pvt. Ltd.) were allowed to Control and Manage the Affairs and Operations of Hotel Queen Road Pvt. Ltd. and presently from 20.07.2023 Hillcrest Reality Sdn. Bhd. Malaysia ceased to hold any Preference Shares and also ceased to hold any Voting Rights in Hotel Queen Road Pvt. Ltd.

RP Mittal claims that 28,29,290 Nos. of 8.5% Redeemable Preference Shares of Rs.100/- each aggregating to a value of Rs.28.29 Crores were issued on 05.05.2003 only for a period of 20 years, which stood expired on 05.05.2023/ 19.07/2023. Therefore on account of expiry of 20 years on 05.05.2023/19.07.2023, 28,29,290 Nos. 8.5% Redeemable Preference Shares of Rs.100/- each aggregating to a value of Rs.28,29,29,000/- allotted by Company Hotel Queen Road Pvt. Ltd., to Malaysian Based shell company namely M/s Hillcrest Reality Sdn. Bhd., Malaysia, presently with effect from 20.07.2023, there are no Preference Shares left in Hotel Queen Road Pvt. Ltd. RP Mitta; claims Equity Shareholding/ Preference Shareholding status of Hotel Queen Road Pvt. Ltd. from 20.07.2023 and till date stood as under:-

Name of Shareholders

No. of Shares

Value of Shares

(Rs.)

Type of

Shares

% of Shares

% of voting Right

Equity Shareholders

(A) Ram Parshotam Mittal Group

 

 

 

 

 

1. Moral Trading and Investment Limited

8,98,181

89,81,810

Equity

99.98

99.98

2. Ram Parshotam Mittal

2

20

Equity

0.0003

0.0003

3. Sarla Mittal

3

30

Equity

0.0004

0.0004

4. Jyoti Mittal (now known as Jyoti Kesri)

2

20

Equity

0.0003

0.0003

5. Sapna Mittal (now known as Sapna Jain)

1

10

Equity

0.0002

0.0002

6. Bhavna Mittal (now known as Bhawana Gupta)

2

20

Equity

0.0003

0.0003

7. Vandana Mittal

2

20

Equity

0.0003

0.0003

Sub Total (A)

8,98,193

89,81,930

Equity

99.99%

99.99%

(B) Ashok Mittal & Others Group

 

 

 

0.01%

0.01%

1. Ashok Mittal

1

10

Equity

0

0

2. Others

158

1,580

Equity

0.01

0

Sub Total (B)

159

1,590

Equity

0.01%

0.01%

(C) Preference Shareholders

0

0

0

0

0

Total Shares (A+B+C)

8,98,352

89,83,520

-

100

100

 

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posted by AshokMittalPlaza @ January 18, 2024   0 Comments