ETBFSIMax Group founder Analjit Singh's wife has claimed "diversion and siphoning" off of funds by her husband from a group holding company.
In a petition filed before the National Company Law Tribunal (NCLT), Neelu Analjit Singh also sought an investigation into the affairs of Max Ventures Investment Holdings Pvt Ltd and directions to declare Analjit Singh "unfit" to be a director and shareholder of the company.
In her petition, a copy of which ET has seen, Neelu Singh claimed that the company's assets were being sold, alienated or siphoned off through sham transactions and that she was being ousted by her husband from the business. She has requested the NCLT to order an independent audit of the company, and restrain Analjit Singh and other directors from using its funds.
She has alleged that a woman with whom her husband was having an "illicit affair" was a key beneficiary of these 'illegal acts'.
When ET sought his comment, Analjit Singh said since the matter was before the NCLT, it was not appropriate for him to clarify or comment. "Perhaps another time, whenever it is correct to do so," he wrote in an emailed response.
The case is scheduled to come up for hearing on March 31. The petition was registered on March 15, ET had reported on Sunday.
In her petition, Neelu Singh said in 2017, in an "utter shock" to her conscience, Analjit Singh "confessed" to her that "he is having an illicit relationship with another woman".
She was completely shaken and traumatised by "such betrayal of Analjit Singh after four decades of married life", the petition said.
According to the petition, through external sources she came to know that the woman was also on the boards of various companies that were subsidiaries or associate companies of a private venture led by Analjit Singh.
All actions concerning shareholder oppression and diversion of funds began since 2017 and are continuing till date, Neelu Singh said. The reason behind this "is the illicit relationship of Analjit Singh, as a result of which he wishes to completely oust the petitioner from the entire business", the petition said.
She claimed that Max Ventures Investment, in which she held a 24.1% stake, had "made investments or extended loans and advances to various unlisted companies and entities that are associated with it either through common directorship or shareholding".
Alleging that the company had raised loans at "exorbitant rates" and then extended funding to related parties at lower rates, she said it had incurred losses because of such "wrongful business decisions taken by Analjit Singh".
She has also challenged the amalgamation of companies within the group, alleging that it would result in further erosion of the wealth of the holding firm.
Most of the corporate actions are done with "the ulterior motive" of draining the wealth of the holding firm and moving it to entities of interest of Analjit Singh and his near and dear ones, she said.
Neleu Singh claimed that major anomalies had been going on in Piveta Estates Pvt Ltd, the Analjit Singh-led company which acquires and manages premium hotels, mainly in South Africa.
"Piveta had cumulatively eroded the shareholders wealth to the tune of ₹640 crore from 2017-2020. Likewise, the debt-equity ratio of the group companies also dwindled and further debt was frequently proposed to be undertaken for which the petitioner was required to sign various documents", her petition said.
The affairs of Max Ventures Investment have been further affected because Analjit Singh has been spending a large portion of his time in South Africa since 2015, it claimed.
In a petition filed before the National Company Law Tribunal (NCLT), Neelu Analjit Singh also sought an investigation into the affairs of Max Ventures Investment Holdings Pvt Ltd and directions to declare Analjit Singh "unfit" to be a director and shareholder of the company.
In her petition, a copy of which ET has seen, Neelu Singh claimed that the company's assets were being sold, alienated or siphoned off through sham transactions and that she was being ousted by her husband from the business. She has requested the NCLT to order an independent audit of the company, and restrain Analjit Singh and other directors from using its funds.
She has alleged that a woman with whom her husband was having an "illicit affair" was a key beneficiary of these 'illegal acts'.
When ET sought his comment, Analjit Singh said since the matter was before the NCLT, it was not appropriate for him to clarify or comment. "Perhaps another time, whenever it is correct to do so," he wrote in an emailed response.
The case is scheduled to come up for hearing on March 31. The petition was registered on March 15, ET had reported on Sunday.
In her petition, Neelu Singh said in 2017, in an "utter shock" to her conscience, Analjit Singh "confessed" to her that "he is having an illicit relationship with another woman".
She was completely shaken and traumatised by "such betrayal of Analjit Singh after four decades of married life", the petition said.
According to the petition, through external sources she came to know that the woman was also on the boards of various companies that were subsidiaries or associate companies of a private venture led by Analjit Singh.
All actions concerning shareholder oppression and diversion of funds began since 2017 and are continuing till date, Neelu Singh said. The reason behind this "is the illicit relationship of Analjit Singh, as a result of which he wishes to completely oust the petitioner from the entire business", the petition said.
She claimed that Max Ventures Investment, in which she held a 24.1% stake, had "made investments or extended loans and advances to various unlisted companies and entities that are associated with it either through common directorship or shareholding".
Alleging that the company had raised loans at "exorbitant rates" and then extended funding to related parties at lower rates, she said it had incurred losses because of such "wrongful business decisions taken by Analjit Singh".
She has also challenged the amalgamation of companies within the group, alleging that it would result in further erosion of the wealth of the holding firm.
Most of the corporate actions are done with "the ulterior motive" of draining the wealth of the holding firm and moving it to entities of interest of Analjit Singh and his near and dear ones, she said.
Neleu Singh claimed that major anomalies had been going on in Piveta Estates Pvt Ltd, the Analjit Singh-led company which acquires and manages premium hotels, mainly in South Africa.
"Piveta had cumulatively eroded the shareholders wealth to the tune of ₹640 crore from 2017-2020. Likewise, the debt-equity ratio of the group companies also dwindled and further debt was frequently proposed to be undertaken for which the petitioner was required to sign various documents", her petition said.
The affairs of Max Ventures Investment have been further affected because Analjit Singh has been spending a large portion of his time in South Africa since 2015, it claimed.
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