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ED Complaint Leads to FIR

 


CA Ramesh Agrawal

An FIR has been registered by The Economic Offences Wing (EOW) of the Delhi Police against Gurugram based real estate company Experion Developers Private Limited and its related entity, Experion Capital Private Limited, following a complaint filed by the Enforcement Directorate (ED), according to an official statement.

The complaint raised from the ED’s investigation into an alleged money laundering case involving Religare Finvest Limited (RFL). During the probe, the ED found that former promoters of RFL, Malvinder Mohan Singh and Shivinder Mohan Singh, allegedly diverted around Rs 2,036 crore through entities under their control.

As part of this diversion, the ED alleged that Rs 150 crore from RFL was used to acquire a 27.86-acre land parcel in Sector 62, Gurugram. On 4th February 2020, the ED attached this land, which also included a 9.1-acre portion owned by Dignity Buildcon Private Limited.

During further investigation, the ED observed that the Experion entities allegedly misused provisions of the Insolvency and Bankruptcy Code during the Corporate Insolvency Resolution Process (CIRP) of Dignity Buildcon. The National Company Law Tribunal (NCLT), Delhi Bench, had initiated insolvency proceedings against Dignity Buildcon on 24th April 2019. These proceedings concluded on 23rd May 2023 and successful resolution applicant was Experion Developers.

According to the FIR, Experion Capital also acquired a loan of Rs 490 crore originally extended by Standard Chartered Bank to Dignity Buildcon for Rs 160 crore through an agreement dated 26th December 2022. This acquisition gave Experion Capital 49.3 percent voting rights in the Committee of Creditors, previously held by Standard Chartered Bank.

Subsequently, on 9th January 2023, Experion Developers withdrew its writ petition, and the stay on voting, earlier granted by the Delhi High Court on 18th January 2023, was vacated.

During the insolvency process, Experion Capital further increased its voting share to 60 percent by acquiring debentures worth Rs 58 crore issued by three Blackstone Group entities for Rs 25 crore.

The ED also stated through a letter dated 24th January 2023 that Experion Capital instructed Alchemist Asset Reconstruction Company to consult it before voting on any resolution plan.

Additionally, Sachin Gupta, authorised representative of Alchemist Asset Reconstruction Company, stated on 23rd August 2024, that Experion Capital had pressured the company to vote in favour of Experion Developers’ resolution plan.

Both Experion Capital and Experion Developers are wholly owned subsidiaries of Singapore-based AT Capital Group.

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