The FIR submitted by Religare Finvest against Singh brothers, Malvinder, Shivinder and former Religare CMD Sunil Godhwani has revealed that Religare gave loans worth a whopping Rs 47,968 crore to 115 of their private entities over a 10-year period.
These loans were disbursed and re-paid over and over again in these years. Religare Finvest has claimed it was defrauded to the tune of Rs 2,397 crore as principal and Rs 415 crore as interest due at last count when this cycle stopped.
The FIR also reveals Religare had been consistently warned by regulator RBI about its corporate loan book (CLB). But those were ignored by Religare when it was run by the Singh family promoters and Godhwani as chairman and managing director.
"From the review of the records, it is... noted that RBI (being the regulator for NBFCs) had from time to time expressed concern regarding the CLB portfolio... But these concerns were not addressed by the promoters," the FIR says.
All the 5 accused--Malvinder, Shivinder, Sunil Godhwani, Anil Saxena and Kavi Arora-have been sent to police custody for the next 4 days by the Saket Court for detailed investigation in the case.
"It appears that MMS and SMS, in conspiracy with SG, being in control of the Complainant company, caused it to give unsecured, high value purported loans to shell companies and related/known entities of MMS and SMS," the FIR says.
It has also alleged that sums to the tune of hundreds of crore were disbursed to private companies at very short notice, often without proper documentation. "In many instances the documentation was created only subsequently and antedated-thus forged," the FIR alleges.