MY COMPLAINT TO VIGILANCE DEPT OF GTB ON 24-7-1999

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Correspondence address:

PANKAJ S MODY
FLAT NO 4 2ND FLOOR
JANMANGAL APT
BMM SOCIETY
JALARAM MANDIR ROAD
AHMDEDABAD 380 006

DATED24-7-1999


THE VIGILANCE DEPARTMENT
GLOBAL TRUST BANK
303-48-3, SARDAR PATEL ROAD
SECUNDERABAD, 500 –003
FAX NO 040-815 879/892



PRIVATE AND CONFIDENTIAL
AND FORURGENT ACTION

DEAR SIR,



SUB: GRANTING OF TERM LOAN OF RS 12.5 CRORES TO COREHEATLH CARE ON REQUEST OF JATIN JALUNDHWALA POSING AS DIRECTOR OF RUPMANGALAM INVESTMENT PRIVATE LTD BY BRANCH OF GLOBAL TRUST BANK IN AHMEDABAD
========================================================

I am shareholder and director of Rupmanglam Investment Private Limited since inception of the company.

It has come to my notice that at instance of one Mr. Jatin Jalundhwala posing as director of Rupmanglam Investment Private Limited based in Ahmedabad, term loan of Rs 12.5 crores was granted by your branch in Ahmedabad to Core Health Care , a loss making company and form 8 and 13 (pertaining to Companies act) were jointly filed with Registar of Companies jointly by Mr. Jatin Jalundhwala posing as director of the company and area general manager of Global Trust Bank. (Xerox copy of Form 8 enclosed).

Eventhough , Mr. Jatin Jalundhwala is company secretary by qualifications, and has acted in the capacity of Company secretary to Core Health Care and therefore, is in the knowledge of company law, Mr. Jatin Jalundhwala appears to have fraudulently misrepresented before the officers of Global Trust Bank, Ahmedabad of possessing necessary authority and power of Board and members of Rupmangalam Investment Pvt Ltd to mortgage immoveable property of Rupmangalam Investment Pvt Ltd to Global Trust Bank and therebymisled and attempted to cheat the bank for obvious reasons and thereby swallow the assets of Rupmangalm Investment Pvt Ltd and thereby putting shareholders of Rupmanglam Investment Pvt Ltd at irretrievable loss , giving cover to Core Health Care which is a higly indebted company and has incurred substantial loss year after year.

I am communicating following information to you for immediate in dept study and follow up action:-

1(a) At this stage, it would not be out of place to mention that Dhanyushya Financial Pvt Ltd through their advocate Shri Ashok D Shah had served notice to me dated 12-12-98 , whereby , I along with other faily members are accepted , confirmed and acknowledged as directors of Rupmangalam Investment Private Ltd. Besides, Dhanyushya Financial Pvt Ltd has not put forth any claim that Mr. JatinJalundhwala is the legal director of Rupmanglam Investment Pvt Ltd.

1(b) In the reply given by my advocate Shri Killol V Shelat dated 1-2-99 to Dhanyushya’s advocate Shri Ashok D Shah , Dhanyushya Financial Pvt Ltd has not dared to submit reply even though more than half year has elapsed for obvious reasons and had avoided to submit their refutation to our charges for reasons best known to them and has also not refuted to the claim of Shri Pankaj S Mody as director of Rupmanglam Investment Pvt Ltd.

Moreover, Dhanyushya Financial Pvt Ltd has not cared to produce necessary evidence called for by me-e.g., I had called for company auditor’s report in relation to transfer of shares , if any and whether it is in accordance with the provisions of the company law and as per the guide lines of Institute of Chartered accountants of India , New Delhi.

For your information, Balance sheet pertaining to period 96-97 of Dhanyushya Financial Pvt Ltd does not show acquisition of Rupmangalm Investment Pvt Ltd shares belonging to Mody family. You can interpret the silence on their part.


2) Record of Right 7/12 (copy enclosed) clearly shows the jCOSNTRUCTED PORTION EXCLUSIVELY BELONGED TO RUPMANGALM INVESTMENT PRIVATE LIMITE while they have registered charge with Registar of Companies as if construction portion also belongs to Flovin Plastics Pvt ltd and Dhanyushya Financial Pvt Ltd., there by , deliberately tried to mislead the bank regarding security given for extracting huge loan of Rs 12.5 crores from Global Trust Bank by offering bogus security to satisfy Global Trust Bank in consideration of huge loan managed to be extracted from the Bank through dubious means.


3) I am given to understand that at the time of availing of term loan in august 98 and feb 99 from your bank , certified copies of audited balance sheets of Rupmanglam Investment Private Ltd for the year 96-97,97-98 has not been submitted by Mr. Jatin Jalundhawala to the registar of companies, ahmedabad. Bank can draw inference from this.


4) When Dhanyushya Financial was not able to furnish evidence of ownership of shares by them in response to the reply given by advocate, shri killol.v. shelat vide his letter dated 1-2-99 . Mr. Jatin jalundhwala was aware that he did not have necessary authority and power of Board as well as well as members of Rupmangalam Investment Private Limited. Inspite of Mr. Jatin Jalundhwala being aware,he goes ahead with mortgaging of property RIPL which clearly show misrepresentation ,concealment and suppression of material facts as well as show his malafide intentions.


5) Any director representing the company would do some introspection and pose a question to himself –Whether he is taking huge business riskon behalf of RIPL and its members , when the company is advancing security of Rs 12.5 crores to Core Health Care which is highly indebted company and incurring high losses? What are the precautions , to protect the interest of RIPL and its members? Am I having enough hold on the directors of Core Health Care as employee Core Health care (MR Jatin Jalundhwala is employee) . You can see ulterior motives of Mr. Jatin Jalundhwala.


In views of above communication and information and magnitude of the issue:-

A) Bank shall probe immediately and independently with the help of experts on company law, the authority and power of Mr. Jatin Jalundhwala in exhaustive details at lightning speed without loss of time in the interest of Bank and Bank officers and take immediate legal action on Mr. Jatin Jalundhwala and other signatories (if any ) to the mortgaging of Rupmangalam Investment Private Limited property grounds of misrepresentation, suppression and concealment of facts and malafide intention to avail term loan of Rs 12.5 crores for Core Health care.

Inspite of having informed the Bank vide this letter to draw your attention to unauthorised and illegal mortgaging of property as explained above on Mr. Jatin Jalundhwala immediately and other signatories to the document mortgaging the immoveable property of RIPL , there will be strong reason to believe that the concerned banking officers also joined hands with Mr. Jatin Jalundhwala, I shall have no alternative but to expose the above acts and omissions in news media as well as various concerned government departments who acted hand in glove with the said person to help them siphon away huge public money and acting against the interest of private depositors with the bank.


B) Global trust bank shall inform immediately that within a week of this letter that they shall make necessary alternate arrangements to vacate the charge on the immoveable property of RIPL and make property free from encumberance and form 17 pertaining to company law would be filed with Registar fo Companies , ahmedabad by making some alternativc arrangment.

I have provided necessary information to go into details.

Thanking you.


Yours sincerely,

PANKAJ S Mody


Encl: 1) Xerox copy of form 8 filed with Registar of Companies,ahmedabad
2) Xerox copy of record of right 7/12 pertaining to immoveable property mortgaged with Global Trust bank