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Delhi Police's Economic Offences Wing has registered an FIR against Experion Developers and Experion Capital following a complaint by the Enforcement Directorate in a money laundering case linked to Religare Finvest Limited. The case revolves around the alleged diversion of INR 2,036 crore by former promoters Malvinder Mohan Singh and Shivinder Mohan Singh, including INR 150 crore used to acquire land in Gurugram. Investigators have raised concerns over the use of insolvency proceedings, loan acquisition at a discounted value, and voting control within the Committee of Creditors to influence the resolution outcome of Dignity Buildcon.
The Economic Offences Wing (EOW) of Delhi Police has registered a First Information Report against Gurugram-based real estate firm Experion Developers Private Limited and its related entity Experion Capital Private Limited. The action follows a complaint filed by the Enforcement Directorate (ED) in connection with an ongoing money laundering investigation linked to Religare Finvest Limited (RFL). Advertisement
The ED's probe into RFL revealed that its former promoters, Malvinder Mohan Singh and Shivinder Mohan Singh, had allegedly siphoned off around INR 2,036 crore through multiple entities under their direct or indirect control. Out of this, about INR 150 crore was reportedly diverted to acquire a 27.86-acre land parcel in Sector 62, Gurugram, making the property a key asset under scrutiny.
Authorities had earlier attached this land parcel as part of the investigation, including a 9.1-acre portion owned by Dignity Buildcon Private Limited. This attachment was part of the ED's efforts to trace and secure assets linked to the alleged diversion of funds.
The investigation also highlighted concerns regarding the Corporate Insolvency Resolution Process (CIRP) of Dignity Buildcon. Insolvency proceedings against the company had been initiated by the National Company Law Tribunal's Delhi bench in the past. Following the completion of the process, Experion Developers was selected as the successful resolution applicant.
During this period, Experion Capital acquired a loan originally extended by Standard Chartered Bank to Dignity Buildcon. The loan, valued at INR 490 crore, was reportedly purchased at a significantly reduced amount of INR 160 crore. This transaction enabled Experion Capital to secure 49.3 per cent voting rights in the Committee of Creditors (CoC), replacing the bank's earlier position.
Following this, Experion Developers withdrew a writ petition, and a stay on voting that had been ordered by the Delhi High Court was later vacated. Investigators noted that Experion Capital subsequently increased its voting share in the CoC to 60 per cent by acquiring debentures worth INR 58 crore from three Blackstone Group entities for approximately INR 25 crore.
The ED's complaint further stated that Experion Capital had, in the past, instructed Alchemist Asset Reconstruction Company to consult it before participating in any voting on resolution plans. In addition, statements recorded during the investigation suggested that representatives of the asset reconstruction company were influenced to support Experion Developers resolution plan during the insolvency process.
Both Experion Developers and Experion Capital operate as wholly owned subsidiaries of Singapore-based AT Capital Group. The FIR marks a significant development in the broader investigation into financial irregularities linked to RFL and raises questions about the conduct of stakeholders involved in insolvency proceedings and distressed asset acquisitions.
Source PTI
FAQ
Q1: What action has been taken against Experion entities?
The Economic Offences Wing of Delhi Police has registered an FIR against Experion Developers and Experion Capital following a complaint by the Enforcement Directorate in connection with a money laundering investigation.
Q2: What is the case related to?
The case is linked to alleged financial irregularities involving Religare Finvest Limited, where funds were reportedly diverted through multiple entities. The investigation focuses on suspected misuse of loan funds and their subsequent deployment in real estate transactions.
Q3: What are the main allegations against the former promoters?
Former promoters Malvinder Mohan Singh and Shivinder Mohan Singh are accused of siphoning off around INR 2,036 crore. Out of this, about INR 150 crore was allegedly used to acquire land in Gurugram.
Q4: Why is the Gurugram land parcel significant?
The 27.86-acre land parcel in Sector 62, Gurugram, is considered a key asset in the investigation as it was allegedly acquired using diverted funds. Authorities have already attached parts of this land, including assets linked to Dignity Buildcon.
Q5: What concerns were raised about the insolvency process?
Investigators have pointed to potential irregularities in the Corporate Insolvency Resolution Process (CIRP) of Dignity Buildcon, which was conducted under the National Company Law Tribunal. Concerns include influence over voting and the conduct of stakeholders during the resolution process.
Q6: How did Experion Capital gain influence in the process?
Experion Capital reportedly acquired a loan from Standard Chartered Bank at a discounted value (INR 160 crore against INR 490 crore), gaining 49.3% voting rights in the Committee of Creditors (CoC). It later increased its share to 60% by acquiring additional debentures at a reduced cost.
Q7: What additional allegations have been made?
The ED has indicated that there may have been attempts to influence voting decisions within the CoC, including instructions to other stakeholders such as asset reconstruction companies. This raises concerns about transparency and fairness in the insolvency resolution process.
Q8: What is the broader significance of this case?
The case highlights potential gaps in financial oversight, loan monitoring, and insolvency proceedings. It also raises questions about how distressed assets are acquired and how voting power within creditor committees can impact resolution outcomes in large financial cases.
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