Business Standard

Chanda Kochhar Money Trail-II: How credence became victim of truth, byword for fraud (IANS Exclusive)

IANS  |  New Delhi 

At the very core of the family enterprise or La Familia remain two similar named companies which beg numerous questions. While the construct of NuPower Renewables came into being much later, IANS has now pieced together the etymology of the Kochhar-Advani enterprise. For them, from the very beginning it was all about credence, convoluted and flawed. And then of course the triangle remains incomplete without the emergence of the ubiquitous Videocon and

The first Credential Finance Ltd (CFL) was birthed on January 23, 1985 as Bloomfield Builders & Construction at RoC (of Companies) with registration No. 035149. By 1994, it fell into the hands of the Kochhars, who renamed it

The second CFL (no, these aren't bulbs) was birthed on March 18, 1992 as again registered at RoC with registration No. 065966. On June 13, 1993, the name was changed to and finally to Credential Finance Ltd on September 27, 1994 (CFL 2).

The first Credential's entry in the data base shows authorised capital of 15 crore, paid up capital of 10.95 crore against which there is an outstanding loan of 2.25 crore. However, documents filed online under various heads show a loan of Rs 8.20 crore from two banks -- on August 31, 1996 a loan of Rs 4.70 crore @ 20 per cent per annum from SBI Home Finance, Kolkata, and on July 24, 1997, a loan of Rs 3.50 crore @ RBI rate + margin from IndusInd Bank, All the loan documents were presented by before the banks and have his signatures. In the loan, the signatures are of the

The second Credential's entry on the data base shows that its authorised capital is Rs 5 lakh, paid up capital is nil and it is under liquidation. Though it does have Rs 26 crore as outstanding loans.

Now, once again we come to the Videocon connection with both these entities. Videocon's has been denying any business association with the Kochhars and his connection with NuPower has been proved conclusively.

In Credential Finance (CFL1), has the highest number of preference shares (of Rs 100 each) listed against its name as of March 31, 2000. Of the total preference shares of 532,250, held 150,000, various Kochhar family members -- Deepak, Rajiv, his wife Monika, Chanda, Vinodini (mother of Deepak & Rajiv), Virendra (father of Deepak & Rajiv) and -- held 898, 747, 625, 473, 3, 2, 2, respectively. Furthermore, it is alleged that Kochhar shell companies ABS Components, Modern Fashions and KG Computers owned 125,000 shares, 120,000 shares and 8,750 shares, respectively.

In Credential Finance (CFL 2), the total number of shares from March 31, 2000 to September 30, 2014 are 5,634,500. As of September 30, 2014, the total number of equity shares of Rs 10 each were in the names of (849,700), (30,385), (2,835), (3,750), Videocon International (1,000,000), (29,985); shell companies (374,300), (981,250), (456,000), other family members (20,420), (20,420), long time Videocon employee S.K. Shelgikar (59,700), Vinodini Kochhar and Virendra Kochhar (15 shares each).

Pertinently, several unnamed "well-wishers" paid off the dues of Credential Finance - a now defunct company that was once run by Chanda Kochhar's husband and In March 2009, the company in which Chanda Kochhar too was once a shareholder, entered into court settlement with multiple creditors.

According to the minutes of the order, in at least one of the cases, Rs 40 lakh was paid to Banque Indo-Suez (now known as Calyon Bank) by the "well-wishers of and on behalf of" Credential Finance. As luck would have it, the directors of the company also changed more or less overnight. The settlements with the different creditors also brought to close an earlier contempt proceedings against Deepak Kochhar, husband of Chanda Kochhar and former of Credential. The dues were paid in tranches initiating with pay orders issued by the However, the did not reveal the identity of the drawer or purchaser of the pay order due to rules of client confidentiality.

(To be continued)



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 13 2019. 07:58 IST