Tribunal NCLT passes order against company having Niira Radia as...

NCLT passes order against company having Niira Radia as majority shareholder

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New Delhi, Mar 24 (ILNS) The National Company Law Tribunal, New Delhi (NCLT) has passed an interim order against the majority shareholder of the company called Nayati Healthcare and Research NCR Private Limited, controlled by corporate lobbyist Niira Radia and her affiliates.

Leading orthopaedic surgeon Dr Rajeev Kumar Sharma had approached the NCLT against the acts of gross mismanagement, siphoning off and fraudulent dealings with the funds of Nayati Healthcare NCR in the hands of majority shareholder and nominee Directors, including Niira Radia. Nayati Healthcare NCR has under its purview two hospitals, one being the Gurgaon Hospital (under construction) and the other being the Vimhans Hospital in New Delhi.

In April 2018, Radia, through her company Narayani Investment Pvt Ltd, acquired 51 percent shares in Nayati Healthcare NCR. During that time, Dr Sharma’s shareholding was 49 percent. The acquisition was announced on newspapers and social media, signaling the entry of Radia’s healthcare venture in NCR. The major asset of the company was Gurgaon Hospital, which was under construction, for which YES Bank disbursed Rs 312.50 crore and further Rs 331.73 crore was invested by Narayani Investment.

By October 2019, YES Bank stopped disbursing any funds. Dr Sharma, through board meetings, email, and verbal communication kept asking for the status of completion of Gurgaon Hospital and utilisation of funds. Instead, he was threatened with legal action, deprived of his rights as a Director to inspect the Company’s books, and denied his salary for work he did as a surgeon for the last one year.

Narayani Investment issued multiple Zero Coupon Fully Convertible Debentures (ZFCD) and converted the same for equity shares in Nayati Healthcare NCR. Simultaneously, Radia kept siphoning off these funds. Consequently, Dr Sharma’s shareholding was illegally reduced to 6.3 percent in the company he founded.

The two-Judge Bench of PSN Prasad and Dr VK Subburaj on March 19 held that even after a total investment of Rs 644.23 crore into the company, the Gurgaon Hospital is in a more dilapidated state than it was in 2018 before Radia came into the picture. Instead, this money was siphoned by entities related to Radia, including but not limited to Ahluwalia Construction, Biosurge Devices, Rajesh Industrial Projects Pvt Ltd, Sanyog Enterprises Pvt Ltd, Ruchi Medical Pvt Ltd, and Nayati Medical Pvt Ltd.

Majority of siphoning of funds was carried out through Ahluwalia Construction, which is a benami company of Radia, having the same name as Ahluwalia Construction Group. Ahluwalia Construction Group, one of the most reputed names in construction, has no affiliation with this so-called company bearing its name.

Further, a trail of Rs 119.15 crore reaching Radia showed the brazen loot carried out by her and her associates. An FIR was registered on November 4, 2020, by the Economic Offences Wing of Delhi Police on the same matter under Sections 409, 420, 467, 468, 471 and 120B of the Indian Penal Code, 1860, which is under investigation.

Dr Sharma presented the photographs of Gurgaon Hospital to the NCLT, details of bank statements of Nayati Healthcare NCR, Ahluwalia Construction, details of the transactions with fictitious accounts owned by Radia, charts reflecting the siphoning off and diversion of funds as well as fraudulent/fictitious invoices and work orders forming part of the reports submitted to YES Bank to avail loans before NCLT, New Delhi in support of his claims.

He approached the NCLT, New Delhi for restoration of his shareholding in Nayati Healthcare NCR and stopping Radia from selling off the assets of Nayati Healthcare NCR to a third party. In effect, after looting company funds and bank loans, Radia was attempting to illegally gain further, alleged Dr Sharma.

The Court, while considering the facts of the matter, ordered that the petitioner was entitled for a status quo on shareholding of the Nayati Healthcare and Research NCR Pvt Ltd and granted four weeks’ time to all 16 respondents to file their replies. The matter is fixed on April 26 for further hearing. ILNS/SNG/RJ

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