Investor alleges Rs 333-cr fund diversion by Bhansali Engg

Kolkata-based MKJ Enterprises, which along with its associates owns 14.89 per cent in Bhansali Engineering Polymers, has alleged the petrochemical firm had siphoned off at least Rs 333 crore through its sister concern, Jagruti Resins. The minority shareholders, controlled by M K Jalan, have filed a petition before the Company Law Board in here. They have also charged the company of overinvoicing raw materials and underinvoicing sales.

In a hearing on yesterday, CLB indicated it would pass orders restraining Jagruti from having its name struck off from the records of the Registrar of Companies , said Ajay Choudhury, senior advocate at Khaitan & Company, who is representing MKJ in the case. Babulal Bhansali, promoter of Bhansali Engineering, denied the charges. “These are bogus complaints. They want to take over the company,” he told Business Standard.