Dalmia Bharat files complaint with EOW over Rs 344 crore ‘securities fraud’https://indianexpress.com/article/business/companies/dalmia-bharat-files-complaint-with-eow-over-rs-344-crore-securities-fraud-5646291/

Dalmia Bharat files complaint with EOW over Rs 344 crore ‘securities fraud’

Suvashish Chaudhary, Additional CP (EOW), confirmed to The Indian Express that an FIR was registered after receiving a complaint from Dr Sanjeev Gemawat, executive director of Dalmia Cement.

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Four companies — AFSPL, Money Mishra Overseas Pvt Ltd, NSDL and ISSL — named in the complaint

Dalmia Bharat Group has registered an FIR with the Economic Offences Wing (EOW) of the Delhi police, alleging that Allied Financial Services Pvt Ltd (AFSPL), Money Mishra Overseas Pvt Ltd, National Securities Depository Ltd (NSDL) and IL&FS Securities Services Ltd (ISSL) have duped them of their securities worth Rs 344 crore.

Suvashish Chaudhary, Additional CP (EOW), confirmed to The Indian Express that an FIR was registered after receiving a complaint from Dr Sanjeev Gemawat, executive director of Dalmia Cement.

“Dalmia Cement was holding securities/mutual funds worth of Rs 344.07 crore in two demat accounts with AFSPL These were allegedly fraudulently transferred on forged documents and pledged with another company,” the Additional CP said.

“We have given our complaint to Delhi Police and are expecting justice,” Gemawat said.

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In his complaint, Gemawat alleged: “Our erstwhile subsidiaries, OCL India Limited (OCL) and Dalmia Cement East Limited (DCEL) were interested in making mutual fund investments in 2017. We availed the services of NSDL and its participant AFSPL. Accordingly, we opened our demat accounts in the name of DCEL.”

“After making initial investment, several further investments and redemption were made from our demat accounts and we were holding securities worth around Rs 344.07 crore in these accounts. AFSPL also sent periodic statement of our accounts and informed us the current status of our accounts.

“We decided to redeem our securities and submitted redemption requests on December 27 last year to AFSPL. In response, they informed us that our request of redemption had been sent to the clearing agent ISSL, who did not release the same on time,” the complainant alleged.

It has been further alleged that despite receiving assurance on redemption after their email request for the same, AFSPL did not honour them.

“After some time, we approached NSDL and they informed us on January 17 that there were no securities available in our demat accounts. However, the director of AFSPL simultaneously sent an email on January 31 where he had confirmed that we are holding securities in our two demat accounts,” the complaint read. Emails sent to AFSPL, NSDL and IL&FS did not elicit any response.

Last month, in an interim order, the Securities and Exchange Board of India (Sebi) — the capital markets regulator — had barred brokerage firm AFSPL, its five directors and four other entities from securities markets for allegedly misappropriating client securities and other violations.

The Sebi order also noted that it had received a complaint dated February 7, from Finsec Law Advisor on behalf of its client Dalmia Cement (Bharat) Limited and OCL India Limited, alleging fraudulent transfer of the mutual fund units worth Rs 344.07 crore by AFSPL.