SEJAL GLASS LIMITED (A BSE & NSE LISTED COMPNAY)
SCAM OF RS. 133 CRORES
BY THE MANAGEMENT OF THE COMPANY

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I, SNEHAL THAKKAR the Minor shareholder of the Company by name Sejal Glass Limited would like to unveil the financial crime of Rs. 133 Crores where in the chairman and managing director viz., Mr. Amrut Gada & its executive director viz., Mr. Mitesh Gada, other family members named Mr. Dhiraj Gada, Mr. Shantilal Gada, Mr. Mayur Gada and Mr. Harsh Gada are involved.

The company secretary Mr. Ashwin Shetty, The Independent Directors Mr. Ramaswamy Rengarajan, Ms. Leena Gadit / Thakkar, Mr. Praful B. Nisar & all other who have offered their service from FY-2010-11 onwards are actively involved in the aforesaid fraudulent activity.

The Company, Sejal Glass Limited is a NSE and BSE listed company,
where more than 48% shareholders are general public like me.

The beneficiary group companies are as follows:
1. Sejal International Limited
2. Sejal Entertainment & Media India Limited
3. Sejal Finance Limited
4. Sejal Glass Craft Pvt Limited
5. Sejal Realty & Infrastructure Limited
6. Sejal Glass House (Proprietary concern)
7. Harsh Enterprise (Proprietary concern)
8. Prima Vista Lifestyle Limited
9. Synergy Wood & Glass Pvt Limited
 

The Gada Family (the management of the company Sejal Glass Limited) parked all the siphoned off funds in real estate with help of one of their friend, who stays at Dadar. With these stolen monies, there are building two landmark towers in Mumbai, One is Siddha Seabrook, located at Shiv Shankar Nagar, Link Road, Lalji Pada, Kandivali (West), Mumbai, Maharashtra 400 067 & another one is Siddha Sky located at GTB Nagar Monorail Station, Indira Nagar, Koliwada, Sion, Mumbai, Maharashtra 400 037. The developers are Siddha Realty of Kolkata & another is Sejal Realty, owned 100% by Gada Family & the biggest defaulter of the company Sejal Glass Limited where more than 48% stakeholders are general public like me.

The biggest question, a family/group is defaulter in various Banks, Financial Institutes, statutory dues of State & Central Governments, Fixed Depositors Deposits & its interest is building a two landmark buildings, which cost more than 500 Crores. The source of funds derived from the scam of Rs. 133 Crores only.

A well orchestrated conspiracy has been hatched between the above beneficiary persons & companies by conspiring with each other has and siphoned funds of the company to their other entities/group of company and there from the monies have been further transferred into the account of the their 100% own companies. The modus operandi adopted by the Mr. Amrut Gada & Mr. Mitesh Gada is that after siphoning the funds they have shown in the record of the company as short term loan/ long term loan / advances and while doing so, no collateral securities has been obtained by the company, Sejal Glass Limited and moreover, no attempt has been made to recover the said amount and in the process, the company, Sejal Glass Limited have showed in their balance sheet as provision for bad debts.

 

The below data extracts from Annual Reports of Sejal Glass Limited for the last five financial years.

No Description F Y 2016-17 F Y 2015-16 F Y 2014-15 F Y 2013-14 F Y 2012-13
1 Share Capital of the company 33,55,00,000 33,55,00,000 33,55,00,000 33,55,00,000 33,55,00,000
2 Short-Term Loan to Group Companies 2,63,73,810   4,05,15,910 4,35,93,154 3,73,75,818 2,80,58,206
3 Long-Term Loan to Group Companies - NIL -

29,36,41,669

29,60,61,484 27,39,37,763 24,73,82,720
4 Inter Corporate Deposits 3,93,00,040 26,99,42,542 27,04,61,656 24,91,49,931 - NIL -
5

Sundry Receivable
(Synergy Wood & Glass Pvt Ltd

1,94,54,307 2,02,83,007 2,05,43,007 2,08,56,454 2,19,10,667
6

Trade Receivable
Sejal Glass House

Sejal International Limited

1,45,43,767

1,56,46,688

1,46,51,806

1,56,46,688

1,35,46,330

1,56,46,688

1,31,80,478

1,56,46,688

47,07,085

1,56,46,688
7 Prima Vista Life Style Limited 92,50,911 92,50,911 - NIL - - NIL - - NIL -
  Total:= (2 to 7) 12,45,69,523 66,39,32,533 65,98,52,319 61,01,47,132 31,77,05,366
 
The details of siphoning of Share Holders’ Funds are as Setout hereafter:

Detail of Syphoning of Share Holders' Funds

Long Term loans to group companies

 FY - 2015-16

 FY - 2014-15

 FY - 2013-14

FY - 2012-13

Sejal International Limited

       18,803,070

       18,803,070

       17,009,524

       13,731,772

Sejal Entertainment & Media India Limited

       12,119,314

       13,124,315

       11,598,979

         8,631,372

Sejal Finance Limited

       68,387,396

       68,387,396

       62,361,916

       62,830,951

Sejal Glass Craft Pvt Ltd

       19,783,034

       19,783,034

       17,891,868

       15,989,398

Sejal Realty & Infrastructure Ltd

    174,548,853

    174,548,853

    160,378,322

    141,440,247

Total :

    293,641,667

    294,646,668

    269,240,609

    242,623,740

Short Term loans to group companies

 

 

 

 

Sejal Entertainment & Media India Limited

         8,321,614

         8,321,614

         8,321,614

         8,248,769

Sejal Glass House - Amrut Gada

       19,551,905

       19,651,905

       18,305,848

       16,667,376

Harsh Enterprise

         9,385,290

       10,085,290

         6,800,000

                        -  

Total :

       37,258,809

       38,058,809

       33,427,462

       24,916,145

 

Trade receivable from group companies

 

 

 

 

Sejal Glass House - Amrut Gada

         9,185,789

       13,546,330

       13,210,478

         4,707,085

Sejal International Limited

       15,646,688

       15,646,688

       15,646,688

       15,646,688

Prima Vista Lifestyle Ltd

         9,250,911

         9,250,911

       55,830,128

 

Total :

34,083,388

 38,443,929   

84,687,294 

 20,353,773    

 

Sundry receivable from group companies

 

 

 

 

Synergy Wood & Glass Pvt Ltd

       20,283,007

       20,543,007

       20,856,454

       21,910,667

Sejal Entertainment & Media India Limited (Misc. Receivable)

         1,337,061

         1,337,061

         1,208,222

         1,208,222

 

Total:

    386,603,932

    393,029,474

    409,420,041

    311,012,547

The company made provision of bad debts in FY 2015-16 is Rs. 121.14 Crores  

 

The aforesaid company/entity in which the money has been siphoned by adopting the aforesaid modus operandi belongs to either the company, Sejal Glass Limited or their relatives and details whereof are as under:

Though, the aforesaid fraudulent act ought to have been notice and reflected in the balance sheet of the company. However, auditor knowingly and willing failed to perform their statutory duty and function as provided under section 148 of the Companies Act and other manner and thus, they facilitated commission of the crime by the company, Sejal Glass Limited. It would not out of place to mention herein that without collusion and connivance of the auditor of the company, it would not been possible for the company, Sejal Glass Limited to commit the offence. While committing the offence the company, Sejal Glass Limited seems to have manipulate the records of the company and forged and fabricated various documents and therefore, by their aforesaid activity of omission and commission have caused wrongful loss to the company/shareholders and wrongful gains to themselves.

Collusion and connivance of the aforesaid company, Sejal Glass Limited can be clearly seen that none of the auditors have objected for aforesaid illegal transaction and instead, Mr. Amrut Gada & Mr. Mitesh Gada have got the money transferred to other entities and siphoned the funds and therefore, they kept mum and  in the process, edited and abetted with each other to commit the offence.

The management has not replying of my queries/concerns from last seven years & as this is a non-cognisable offence by the management, company secretary, independent directors & auditors of the company, Sejal Glass Limited, I have decided to file suit in the Bombay High Court as the lockdown gets over.

Above all, the company failed to repay Fixed Deposits & it’s interest to the Fixed Deposit Holders from 2013 & according to the Companies Act 2013, under section 164(2)(b), if any company failed to repay the deposits accepted by it or pay interest thereon or to redeem any debentures on the due date or pay interest due thereon or pay any dividend declared and such failure to pay or redeem continues for one year or more,  shall be eligible to be re-appointed as a director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so.

As per section 167 (of the Companies Act 2013) - Vacation of office of director, If a person, functions as a director even when he knows that the office of director held by him has become vacant on account of any of the disqualifications specified in subsection (2), he shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees, or with both.
(3) Where all the directors of a company vacate their offices under any of the disqualifications specified in sub-section (1), the promoter or, in his absence, the Central Government shall appoint the required number of directors who shall hold office till the directors are appointed by the company in the general meeting.

Not only the Mr. Amrut Gada (the Chairman and Managing Director), Mr. Mitesh Gada (the Executive Director) but also the Company Secretary, all the Independent Directors, all the auditors hide the vital information because their mala fide intent only. For the same they are liable for the punishment under the section 447 of the Companies Act 2013, where the provision for imprisonment upto ten years & penalty is three times of amount of fraud. One should not forget that here financial scam taken place is of Rs. 133 Crores.
The management has not answering any of my queries/concerns from last seven years, so I have decided to file writ petition in the court of law as the lockdown gets over.

Regards
Snehal Thakkar
The Minor Shareholders

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