Friday, April 3rd, 2020

Big Corporate Fraud

Fraud-Crosshairs1INVC, Delhi, While addressing the Press Conference, Dr.Udit Raj, National Chairman of the All India Confederation of SC/ST Organizations said  that  Plethico Pharmaceuticals Limited, Indore-based Indian Company, claiming to be a leading healthcare/pharmaceutical company,  has posted totally wrong and  unreliable information about Rezlov LLC., Ukraine on its This complaint was made to him by the director, Mr. Binod Kumar, of Rezlov Company and he wrote letter and furnished other fraudulent documents. On the website, they have stated that they hold 45% shares of Rezlov LLC and their investment as in 2008-09 was Rs. 159.77 million. As is evident from the Certificate on State Registration of Rezlov LLC and a certificate from  the Uniform State Register of Enterprises and Organizations of Ukdraine,  Rezlov LLC was registered in 2006 as 100% Ukranian company and as of today, it is a 100% Ukranian company. Plethico Pharmaceuticals Limited has wrongly claimed in website, Press and public fora that they control 45% shares of Rezlov LLC, Ukraine and that their investment in Rezlov LLC in 2008 was Rs. 159.77 million.  As per para 20 of  the annual report for year 2008 (refer report 2008.pdf sheet of the Company, the status of equity holdings as on 31.12.2008  in associate companies as on 31.12.2008 has been wrongly  shown as –

Company Country No. of  Shares Held % of equity holding Investment at cost (Rs. in min) Loans & advances as on 31.12.2008
SC Rezlov Ukraine 16088 45% 159.77 Nil

                As per Ukranian records, Plethico Pharmaceuticals Limited does not hold any shares in Rezlov whereas according to the balance sheet, Plethico Pharmaceuticals Limited holds 16088 shares amounting to Rs. 159.77 million which according to them works out 45% of equity holding.

        Dr. Udit Raj further said that the name of Shri Binod Kumar, an Indian citizen with permanent official residence in Ukraine is currently not the official representative of  Plethico Pharmaceuticals Limited in Ukraine as has been claimed by the Company and as a matter of fact, Shri Binod Kumar is a Director and shareholder of Rezlov LLC Ukraine.

Company Country No. of  Shares Held % of equity holding Investment at cost (Rs. in min) Loans & advances as on 31.12.2008
TOO Rezlov Ltd Kazakhstan 1559025 45% 270.49 Nil
ICS RezlovMO SRL Moldova 33345 45% 202.99 Nil
OOO Rezlov Ltd Kyrgyzstan 62100 45% 141.03 Nil
CJSC Rezlov Russia 303750 45% 198.05 Nil
SC Rezlov Ukraine 16088 45% 159.77 Nil
Rezlov LLS Azerbaijan 548550 45% 81.47 Nil

If Plethico Pharmaceuticals Limited  company can make false claim of holding equity shares in Rezlov, Ukaraine then it is likely that holdings in other countries are also bogus. Thus fraud worth 100 Crores can be unearthed if proper investigation is made. So far RBI has failed to take any action despite the fact Mr. Binod Kumar had already launched complaints with it.

                This fraud is being organized by Mr. Shashikant Patel, Chairman cum Managing Director and Chirag Patel of Plethico Pharmaceuticals Limited. Its registered office is shown at A. B. Road, Manglia, Indore, Madhya Pradesh- 453771, Phone- 0731-2422881-85 and corporate office is at Sabnam House, Ground Flr, Plot no.-A 15/16, Central Cross Road-B behind MIDC Police Station, Andheri Mumbai-93, Phone-66988301-2. Shri Pranab Mukherjee, President of India has rightly said in National Academy of Direct Taxes, Nagpur on 29th April that the corporate companies are avoiding the taxes. Dr. Udit Raj said that unfortunately in our country, the corruption of politician and bureaucrats are more known than the corporate houses. It is demanded that  CMD  and Directors are immediately arrested and investigated.

Shri Binod Kumar has taken up the matter of several irregularities and acts of financial impropriety including money laundering running into crores  being committed by Plethico Pharmaceuticals Ltd.  with the Reserve Bank of India which need to be probed thoroughly.



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