Legality Of Ajay Piramal’s Actions: A Brief Resume

Posted on 12/05/2023 (GMT 08:15 hrs)

Updated on 15/05/2o23 (GMT 04.34 hrs)

INTRODUCTION

In this article, we are trying to depict the Mr. Ajay Piramal’s activities in connection with our article on:

The Psychoanalysis of a Crony Billionaire: Filing Defamation Cases

Here, we are putting the events related to the business (not industry) of Mr. Piramal, CBE (HM), with chronologically arranged step-by-step analysis with legal codes and some reported speeches (despite that we have checked the facts), we do not want to comment on any of the opinions of social media and non-Godi media.

The Brief Resume

.                   AJAY PIRAMAL: AN INSIDER TRADER?

a)    The Event:

·       SEBI Finds Piramal Enterprises, Ajay Piramal Guilty Of Violating Insider Trading Regulations VIEW HERE ⤡ (As reported on 3^rd October, 2016 © BloombergQuint)

·       Piramal Enterprises fined Rs.6 lakh for insider trading VIEW HERE ⤡ (As reported on 5^th October, 2016 ©The News Bytes)  

However, SAT ignored SEBI’s fact findings (reason unknown)    

·       SAT sets aside Sebi’s order against Piramal Ent, others in insider trading control lapses case VIEW HERE ⤡ (As reported on 15^th May, 2019 ©The Business Standard)         

b)   What the Law Says:

·       2013 INSIDER TRADING POLICY, INDIA VIEW HERE ⤡

·       Section 15G: Penalty for insider trading VIEW HERE ⤡

An Instance of Punishment for Insider Trading: Rajat Gupta

·       Rajat Gupta and Goldman’s Insider Trading Bombshell VIEW HERE ⤡

·       Rajat Gupta fined $13.9 million for insider trading VIEW HERE ⤡ (As reported on 18th October, 2016 ©The Hindu)

How did Ajay Piramal escape from the charge of alleged insider trading? Because he is more equal than others⤡.  

II.                MR. PIRAMAL’S POLITICAL NEXUS

In Selling Firm to Piramal Group as Minister, Piyush Goyal Pushes Ethical Boundaries VIEW HERE ⤡ (As reported on 28^th April, 2018 ©The Wire)       

Piramal couldn’t answer and didn’t even bother to reply to The Wire reporter’s pertinent questions. As The Wire wrote:

“…the Piramal Group made no attempt to clarify any point, or offer an answer to our questions.”

However, the Piramal Group finally threatened The Wire for making “defamatory statements” against it:

‘No Wrongdoing’: BJP, Piramal Group React to The Wire’s Story on Piyush Goyal VIEW HERE ⤡ (As reported on 29th April, 2018 ©The Wire)

Piramal Group Responds to The Wire’s Story on Piyush Goyal VIEW HERE⤡ (As reported on 3oth April, 2018 ©The Wire)

ROB PETER TO PAY PAUL! Mr. Piramal resold this company within few days, bearing huge loss as a result. Why did Mr. Piramal then buy such company from a BJP MP and Union Minister? The answer my friend, is not blowing in the wind: Mr. Piramal tried to satisfy the ruling party’s obnoxious greed.

How did Mr. Piramal and Mr. Piyush Goyal deny such grave allegation? Is this not a state of crony and monopoly capitalism⤡ in India? Because he is more equal than others⤡.  

It is “normal” within the crony oligarchy!

III.            THE DHFL SCAM, THE NCLT ORDER (19/05/2021) AND CONTEMPT OF COURT

a)    The Event

NCLT first order (19/05/2021) on the DHFL case stated that the old promoter’s settlement proposal (providing for 100% repayment to all the creditors) should be (re-)considered by the CoC within 10 days; but the successful bidder, viz., Mr. Ajay Piramal, along with the CoC and Union Bank of India, rushed to the NCLAT to nullify this order (25/05/2021) without answering the NCLT in the first place. It is clearly a case of contempt of court. It is also to be noted that Bankruptcy will not void personal guarantees: Supreme Court VIEW HERE  (As reported on May 22, 2021 ©The Times of India).

Download NCLT ORDER ON DHFL-COC

b)   What the Law says:

The Contempt of Court Act, 1971 states that:

Section 2(a): Contempt of Court means Civil Contempt or Criminal Contempt. It means there is no any straight jacket formula has been mentioned in this definition. The definition is of inclusive nature.

Contempt of courts is the offence of being disobedient to or disrespectful toward a court of law and its officers in the form of behaviour that opposes or defies the authority, justice and dignity of the court.

Contempt of court can be classified into two broad segments of-

(a)Being disrespectful to legal authorities in the courtroom.

(b)Wilfully failing to obey a court order.

Acknowledgement: Prime Legal ⤡

Section 12 (Penal Provisions):

·       Contempt of court is punishable by the Supreme Court and High Courts with either simple imprisonment for up to six months or a fine of up to Rs. 2,000, or both.

·       The Supreme Court determined in 1991 that it has the authority to penalize for contempt not only itself, but also all other high courts, subordinate courts, and tribunals in the country.

·       According to Section 10 of the Contempt of Courts Act of 1971, High Courts have been given unique powers to punish contempt of subordinate courts.

Acknowledgment: Prepp India ⤡

Did not Mr. Piramal fail to obey the court order by ignoring the NCLT’s given verdict? How did he get such hastened justice at the NCLAT? Because he is more equal than others⤡.  

IV.             The NCLAT Verdict (27/01/2022): bolt from the blue

a)    The Event

NCLAT second order (27/01/2022) found many irregularities and illegalities (“contrary to law”) in the CoC’s resolution process, especially the way the CoC ignored the Section 66 of the IBC that provides for the benefit of all the creditors, as pointed out by 63 Moons Technologies.

IBC Section 66 Overlooked by the DHFL-CoC: A Big Conspiracy? VIEW HERE ⤡

NCLAT-order-27-01-2022-1Download

b) The Great “Bajrang” Leap: going to the SC by ignoring the HC

Piramal hurriedly took a great leap on 1^st March, 2022, and approached the Supreme Court of India directly to put a stay on the NCLAT’s highly pertinent order. He managed to do the same on 11^th April, 2022.

DHFL Case: SC Stays NCLAT Order; To Hear Appeals Of Piramal, Banks In May VIEW HERE ⤡(As reported on 11^th April, 2022 ©Economic Times)

A stay order, it is to be kept in mind, is a temporary injunction on a certain verdict by a higher/highest court. It temporarily stops or postpones the proceedings on a particular case.

Despite there are many anomalies in RBI-appointed CoC for DHFL’s approval of Piramal’s resolution plan, they have got the stay order from the SC when the victims of DHFL scam are struggling for their existence.

However, how did he get such rapid justice at the Court, yet again? Why did he not first approach the HC with his petition against the NCLAT order? Did he thus not ignore the properly chronological legal trajectory? Again, such action proves that Mr. Piramal is more equal than others⤡.  

Do you have faith in the Contemporary Indian Judiciary? VIEW HERE ⤡

It is “normal” within the crony plutocracy!

V.                RBI-Appointed Coc For DHFL’s Opaque Behaviour

It is said that a Resolution Professional will come within the meaning of ‘Public Servant’ under Section 2(c) of the Prevention of Corruption Act, 1988 and Section 233 of IBC (2016) does not protect where s/he has been apprehended red-handed with the bribe amount (in Sanjay Kumar Agarwal Vs. Central Bureau of Investigation, Anti-Corruption Bureau, Dhanbad – Jharkhand High Court).

DHFL victims experienced that, during the so-called “transparent” meetings of the CoC, many pertinent questions are not being answered.

• SMELLING THE RAT IN THE DHFL-COC RESOLUTION PROCESS: A LETTER TO THE PRESIDENT OF INDIA VIEW HERE⤡
• PLEASE COMPOSE AN OBITUARY FOR THE RBI-APPOINTED COMMITTEE OF CREDITORS (COC) FOR THE DHFL VIEW HERE⤡
• You’re all caught up: RBI-appointed CoC for DHFL VIEW HERE ⤡

Therefore, after viewing the second verdict of the NCLAT, some DHFL victims demanded return of the fees of the two public servants: Mr. R. Subramania Kumar and Mrs. Charu Charu Desai

• Requesting for Returning the Fees from the Administrator and Representatives of the RBI-appointed CoC for DHFL VIEW HERE ⤡

The problems are that the CoC for DHFL, though serving the public by utilizing DHFL victims’ money, are against the DHFL Victims, who have lost their lifetime savings. Moreover, a huge amount of money is allotted for the future cases to be fought against the DHFL victims’ legitimate demands. It is matter of regret that the ill-conceived IBC (2016) is a sword for cutting the heads of the victims.

It is “normal” within the crony autocracy!

VI.             Piramal Trespassing When The DHFL Case Is Under Adjudication

The crucial question is: can anyone own a company pending adjudication? Is it not a case of “adverse possession“⤡? Mr. Piramal occupied the DHFL by using dubious names (Piramal CHFL aka Piramal Finance). Mr. Piramal is happily running the company without giving any attention to many cases filed by the DHFL victims, which are still pending.

DEAR DHFL TEAM, PLEASE REFRAIN FROM MAKING ANY DISBURSEMENT TO THE DHFL FD HOLDERS DUE TO PENDING ADJUDICATION VIEW HERE ⤡

Under Adjudication VIEW HERE ⤡ means that “the legality of the transaction is still under adjudication (= being decided) in the courts.”

It is “normal” within the fascist regime!

CONCLUSION

In the context of monopoly and crony capitalism, concentration of wealth is inevitable. We have seen bankruptcies, superrich wilful defaulters vis-à-vis poverty, unemployment, hunger, suicides, unhappiness etc. The oligarchic regime does not care about such important issues. Instead, they are busy with fashion parades (so-called political rallies), ostentatious display of Central Vista, Vishwanath Dham Corridor, Ram Mandir etc. All these cannot solve the real miseries of the citizens. Therefore, mass mobilization is necessary when citizens are within the failed state and sick society.

All About Ajay Piramal:

·         WHO IS AJAY PIRAMAL? VIEW HERE ⤡

·         Are you pāpayoni or the nimitta kāraṇa for creating carceral society? A Letter to Mr. Ajay Piramal and Mrs. Swati Piramal VIEW HERE ⤡

·         Ajay Piramal hypocritically smashing the Gauḍiya Vaiṣṇava Dharma (a letter to Śrīmat Rādhānātha Svāmī)  VIEW HERE ⤡

·         An Open Letter to the Honourable Queen of the United Kingdom regarding the Honorary CBE awarded to Mr. Ajay Piramal VIEW HERE ⤡

·         The Psychoanalysis of a Crony Billionaire: Filing Defamation Cases VIEW HERE ⤡

·         Revealing the controversies about the Piramal Group: Additions on Wikipedia VIEW HERE ⤡

·         Why is Mr. Ajay Piramal hiding himself from the socialization process? VIEW HERE ⤡

·         Greetings to Mr. Ajay Piramal: the “Successful Owner” of the DHFL aka PCHFL aka Piramal Finance VIEW HERE ⤡

·         Dear Mr. Ajay Piramal, Wanna become wilful defaulters following the path of 50+ super-rich business barons VIEW HERE ⤡

·         IF A[M]DANI SCAMS, CAN AMBANI-PIRAMAL BE FAR BEHIND? VIEW HERE ⤡

·         Some open, controversial questions to Mr. Ajay Piramal regarding the DHFL Acquisition VIEW HERE ⤡

·         Aadiya and Krishna Piramal: Best Wishes to Newborn Twins in Ambani-Piramal Family from the DHFL Victims  VIEW HERE ⤡

·         An RTI to the Department of Legal Affairs regarding the disputed ownership status of the DHFL VIEW HERE ⤡

·         EXPOSING PIRAMAL REALTY: KRISHNARAJ RAO VIEW HERE ⤡

·         AN RTI ON “WHO OWNS DHFL NOW: PCHF OR PIRAMAL FINANCE?” VIEW HERE ⤡

·         The Dilemma of schizophrenic selves: the changing names of companies under the Piramal Group: A letter to Mr. Ajay Piramal VIEW HERE ⤡

·         RADHANATH SWAMI: AMBANI-PIRAMAL FAMILY’S GURUJI VIEW HERE ⤡

It is “normal” under crony capitalism!