Ashok Mittal of Hotel Royal Plaza, is accused of deceitfully transferring hotel shares to his relatives, in addition to facing major financial fraud cases.

 Bharat 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.)

Ashok Mittal of Hotel Royal Plaza, is accused of deceitfully transferring hotel shares to his relatives, in addition to facing major financial fraud cases.

By Virat Kohli

#AshokMittal of the #HotelRoyalPlaza is under investigation for his illegally issued and allotted equity shares in his name, allowing family members to take control of the hotel's management and operations, as well as for his close ties to #NandKishoreChaturvedi, the most wanted hawala dealer in India, and for making benami investments in the establishment. The ownership and management of the hotel are being compromised, and this is a blatant breach of the law. 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

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.cmsThis 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 IANo. 384 of 2023 in CP No. 992 of 2005 gives details of Ashok Mittal's illegally allotted 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.new 

RP Mittal has made following claims before the tribunal giving sequence of events:

1. R.P. Mittal and his family, 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.

2 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.

3) Mr. Ashok Mittal and Mr. 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.

4)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. 

5) 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.

 6) 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.

 7) 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 Mr. Ashok Mittal out of the said illegal Right settlement of 1,35,29,752 Nos. of Right Share on 81,01, 648 sub -judice share.

 8) Vide 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.

 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.

 

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