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

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The fund transferred from M/s. Sejal Glass Limited to below mentioned group companies. The below mentioned companies are 100% owned & 100% controlled by Mr. Amrut Gada, Mr. Mitesh Gada & their family members only. The end beneficiary of the siphoned of funds is nobody but the family member of Mr. Amrut Gada & Mr. Mitesh Gada & themselves only.

The beneficiary group companies are as follows: The ultimate beneficiary persons of 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
1. Mr. Amrut Gada The chairman & Managing Director of Sejal Glass Limited
2. Mr. Mitesh Gada The Executive Director of Sejal Glass Limited
3. Mr. Dhiraj Gada Younger brother of Mr. Amrut Gada
4. Mr. Shantilal Gada Elder brother of Mr. Amrut Gada
5. Mr. Mitesh Gada Elder Son of Shantilal Gada
6. Mr. Harsh Gada Younger Son of Shantilal Gada
    & others family members.
   
 

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 companies/entities 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:

siphoned

This is non cognisable offence by the management, company secretary, independent directors & auditors of the company, Sejal Glass Limited.

Above all, the company, Sejal Glass Limited failed to repay Fixed Deposits & it’s interest to the Fixed Deposit Holders from 2013 & according to the Companies Acts 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 Acts 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 Acts 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.