Business Standard

Chanda Kochhar Money Trail-VI: A modern tale of deceit (IANS Exclusive)

IANS  |  New Delhi 

It is said that if you dress cronyism as a favour, then you wind up on skid row. Equally, sorrows dont come individually but in battalions. The tale of and her husband intertwining their fate and destiny with Videocons leaves behind in its wake a smoking gun which refuses to go away from the scene of the crime. At every twist and turn in this long running soap which resembles the cult pulp soap Dynasty, Videocon and Dhoot turn up like a sugar daddy to sign off on sweetheart deals.

Three dubious shellcos find convergence as major investors in both the Credential Finance companies (& CFL 2) floated and owned by the Kochhar brothers - and Rajiv - as discovered by IANS in its detailed investigation earlier in the series. Modern Fashions, KG Computers and ABS Components. Curiously, was struck off in the wake of demonetisation. Let us examine the Modern Fashions paper trail in government records.

CFL balancesheet reveals that Modern Fashions as on September 30, 2000 invested Rs 1.20 crore in preference shares and Rs 37.43 lakh in equity shares of CFL, a total of Rs 1.57 crore. Again, it emerges that there are two companies named Modern in the mix, just like there are two Credentials. registered in (U18101DL1988PTC031753) and registered in Kolkata (U51909WB19 92PTC056997), which subsequently changed its name on MCA's website to (U51909WB1992PTC56997), hitherto Modern Kolkata, a bonafide company not owned by Kochhars.

was incorporated on November 17, 1992 with its registered office as 9 Dacres Lane, Flat No 17, 2nd Floor, South Block, Kolkata 700069 by Vivek Himatsingka and Vishal Himatsingka. That is where the similarity ends.

seems bonafide with no connections to Kochhars. It files its returns regularly and appears to be completely genuine. Meanwhile, Modern was incorporated by and on May 19, 1988 with Rs 1,000 as authorised capital, its registered office is B 33 SFS House, Sheikh 1, 110017.

Sometime in FY 2003-04, Modern Delhi surfaced on the radar as it filed its returns, showing a loss of Rs 7,680. (of Companies) documents show that entered the company as a minority shareholder and took over its directorship on October 1, 1994. Majority shareholding was with which was incorporated along with elder brother for Rs 200 on September 8, 1994. This is where Chanda Kochhar's Rajiv pops up.

Over time, Modern Delhi's authorised capital ramps up from Rs 1 lakh to Rs 1.55 crore on 4.10.1995. But the company's paid up capital is shown as Rs 1.78 crore in the returns filed in 2003-04 and 2004-05. This company is shown as "struck off" at serial number 13422 out of a total of 24,945 companies that were struck off by Delhi on September 1, 2017 in their continuing action against errant companies after DeMo.

Now comes the Videocon link, in its returns for 2002-04, the company has shown an unsecured loan of Rs 1.05 crore. Further, it has stated that it made an investment of Rs 56.17 lakh (at cost) in buying 48,000 shares of

Modern Fashions owned 120,000 shares in CFL 1, while it held 374,300 shares in This is where the convergence sets in. Interestingly, Form 18 also shows how the address of this company has changed. First it was 33 SFS Flats Pocket B, Sheikh Sarai, 17 and then it was changed to UB-5 Arunachal Bhawan, Road, Connaught Place, New Delhi, effective 20.3.2006. When visited, the Road address is clearly that of a suitcase company for it is just a hole in the wall, with no sign of life. Here again there is a major discrepancy where the physical copy of Form 18 and the of Form 18 show different addresses.

Physical copy shows Modern Delhi's registered office as 24 School Lane, opposite Holiday Inn, Road, New Delhi-1, to UB 5 Arunachal Bhawan, Barakhamba Road, New Delhi-1. Which is at odds with the Sheikh address.

(To be continued)

--IANS

prs/

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

First Published: Wed, May 15 2019. 19:56 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU