Stray Thoughts on The Biggest Financial Scam in India: DHFL

Posted on 04/07/2023 (GMT 08:05 hrs)

Updated on 04/07/2023 (GMT 15:10 hrs)

INTRODUCTION:

Has anyone ever heard of the incident of losing FD-holders’ money in the post-independent India? Especially after the nationalization of banks in 1969? However, in the Mo-Shah (Phonetically equivalent to non-vertebrate mosquitoes) regime, we have seen this unprecedented case of non-risky investments going astray. This is the “success” of the crony government in India that is allowing rapists, superrich wilful defaulters, rioters/pogromers etc., to move scot-free under massive political protection. In this regime, a suspicious Himalayan guru is controlling the NSE⤡ by hiding his/her identity!

When the DHFL victims are retrospecting, they may have the following stray thoughts on the third party intervention in the dealing in between old promoter of DHFL and the DHFL customers: the conversion of sin to crime– two supposedly different ethico-legal concepts.

We have learnt from the past that post-independent India has seen too many financial scams, e.g., Harshad Mehta case⤡, Satyam Scams⤡ etc., and how the victims in these two particular cases were saved.

Especially, we have to learn how our former Prime Minister as well as former apt RBI Governor Manmohan Singh (sometimes referred to as the “local agent” of the World Bank, but he is not at all like the incompetent Mr. Shaktikanta Das, MA History!⤡) who tackled the Sub-prime scam (2008) without harming the common Indians in any manner.

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Section I: RATNĀKARA AND PIRAMAL- COMPARING SITUATIONS OF ‘PĀPA’ (SINFUL ACTS)

Can you remember Ratnākara’s trajectory from a dacoit to a saint, viz., Rsi Valmiki? When Ratnākara looted others’ private and personal properties, Narada Muni pointed him out that these are sinful acts (papa) and are not to be performed/committed (though, according to anarchist interpretation: property is in-itself a theft)and requested Ratnākara to share the surplus burden of sin with his family members. However, the family members of Ratnākara refused to take that burden, though they were nurtured by the tiresome labour-products of his loots.

In the case of Mr. Ajay Piramal, a paramavaiṣṇava, after “owning” the Dewan Housing Finance Corporation Limited (DHFL), also refused to take the burden of so-called “prior offences” by alluding to the Section 32A (2019 amendment) of the IBC (2016), which states:

“[32A. Liability for prior offences, etc.–(1) Notwithstanding anything to the contrary contained in this Code or any other law for the time being in force, the liability of a corporate debtor for an offence committed prior to the commencement of the corporate insolvency resolution process shall cease, and the corporate debtor shall not be prosecuted for such an offence from the date the resolution plan has been approved by the Adjudicating Authority under section 31…”

In other words, the PCHFL aka Piramal Finance that allegedly “acquired” the DHFL argued by citing the Section 32A that the said legal provision prohibits the existence of an FIR and the criminal proceeding arising out of it against the new management, after the “successful completion” of the corporate insolvency resolution process (CIRP). Hence, sins are not to be “carried forward”!

SC notice to CBI on Piramal Capital & Housing Finance plea to quash FIR VIEW HERE ⤡ (As reported on 26th February, 2023 ©Business Standard)

Paramavaiṣṇava Ajay Piramal can never be a “Saint” Vālmiki. Instead of singing out “mā niṣada pratiṣṭham tvamagamahaḥ” by seeing the DHFL victims suffer a “capital” punishment, he is actually playing the role of niṣāda or the hunter, the one who killed two innocent birds engaged in loving intimacy. Nevertheless, he has forgotten the burden of his past deeds:

#WHO’S WHO OF PARAMAVAIṢṆAVA AJAY PIRAMAL#

WHO IS AJAY PIRAMAL? VIEW HERE ⤡

The Old Sinner: the deeds of a paramavaiṣṇava, Ajay Piramal VIEW HERE ⤡ 

Legality Of Ajay Piramal’s Actions: A Brief Resume VIEW HERE⤡ 

Piramal’s (Il)legal Operations Not Found On Wiki VIEW HERE ⤡

Ajay Piramal: How Many Times Are You Seeking “Blanket” Stay Orders?

Moreover, he has forgotten all about the Section 66 of the IBC that provides for the benefit of all the creditors in the recovery of avoidance transactions. He has financially abused the DHFL victims by looting their life-savings with the help of the current ruling party.

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

Without any liability, he “bought” (?) an AAA rated, 45k crore worth company by paying only a rupee! This is an adverse possession of a solvent concern! Without putting in much labour (and zero amount of socially necessary labour!), one can “buy” a company with an entire infrastructure along with all the employees without bothering about the legality of the affairs!

HOW TO MAKE AN ONGOING SOLVENT COMPANY INSOLVENT: DECEPTIVE AUDITING (?) OF THE DHFL

How can such (ill-)legal set of events be justified? No śloka (poetic verse) will ever emerge from this ever-continuing śoka (grief) of the DHFL victims since the past three years due to politically predetermined financial abuse.

Section II: THIRD PARTY INTERVENTION IN DHFL SCAM

The DHFL victims are curious to know how Mr. Ajay Piramal has appeared in the scenario in the first place. When the old promoter repeatedly promised to provide full repayment to the FD and NCD Holders of DHFL, why did a third party, viz., Mr. Ajay Piramal and the RBI-appointed CoC, intervened in between the customers of DHFL and the DHFL owners? The former directors or promoters were barred from participating in the said resolution process.

THE GREAT NON-WILFUL ABSENTEES IN THE RBI-APPOINTED CoC FOR DHFL ⤡

In addition to that, Section 19 of the IBC clearly states that:

Personnel to extend cooperation to interim resolution professional.

19. (1) The personnel of the corporate debtor, its promoters or any other person associated with the management of the corporate debtor shall extend all assistance and cooperation to the interim resolution professional as may be required by him in managing the affairs of the corporate debtor.”

It is clear from the above that the old promoters’ or suspended directors must have equal rights and equal say in the resolution process.

The Supreme Court’s Verdict also provides for the consideration of the old owners’ proposals:

Bankruptcy will not void personal guarantees: Hon’ble Supreme Court VIEW HERE ⤡

MR. KAPIL WADHAWAN’S REPEATED PROMISES IN THE DHFL SCAM ARE AS FOLLOWS:

Kapil Wadhawan vs Union Of India And Ors on 16 November, 2021 VIEW HERE ⤡

DHFL resolution: Kapil Wadhawan approaches SC with fresh petition VIEW HERE ⤡ (As reported on 8^th March, 2022 ©businessline)

The simple solution for paying back victims’ money was disrupted by the redundant resolution process for an ongoing, profitable company. The supposed criminal allegations against the former promoters of DHFL are yet to be proved in the court of law, hence they do not hold.

Yes Bank-DHFL scam: Supreme Court upholds default bail granted to Kapil, Dheeraj Wadhawan VIEW HERE ⤡ (As reported on 27th March, 2023 ©Economic Times)

Why this third party intervention then by throwing the nation’s innumerable citizens into misery and suffering by putting public money at stake in order to please the crony ruling governance of India?

Yes Bank-DHFL scam: Court says nation is victim, denies bail to Pune-based realtor VIEW HERE ⤡ (As reported on 27^th June, 2023 ©The Economic Times)

CONCLUSION:

After reviewing and retrospecting all these matters of facts, a DHFL victim can reiterate the first śloka of the Rāmāyaṇa, addressing it to Mr. Ajay Gopikisan Piramal, the hunter/niṣāda to put a stop at the violent onslaught on the DHFL victims:

मा निषाद प्रतिष्ठां त्वं
अगमः शाश्वतीः समाः ।
यत् क्रौंचमिथुनादेकं
अवधीः काममोहितः ॥

The rough translation (not literal) is given as follows:

O Hunter, you will never establish in your life for killing the bird-couple, who were engaged in loving intimacy!

O KING, STOP KILLING THE ENVIRONMENT OF OUR TAPOVANA (HERMITAGE), THE AKHANḌ HINDU BHĀRAT

O KING, STOP KILLING DEER OF OUR HERMITAGE Environmental consciousness in Indian science and technology VIEW HERE ⤡