By Neil Terrance Haslam @neilhaslam90
In India, the real estate sector maybe losing pace due to the Covid-19 pandemic but before the pandemic came knocking and knocked out the Indian economy’s door, people invested their hard-earned money in this sector with the hope of a higher return in the long term.
People invest here for future rental income and appreciation of property but it cannot be ignored that scams and frauds have created a sense of fear in people who want to invest in these sectors. Despite investing their money in these projects, people are not getting the desired outcome. There are so many cases of frauds disclosed in the past few years where the invested money has been siphoned off or misused.
On many occasions, investors fall into the trap of scammers and fraudsters who come up with lucrative offers and ultimately leave them empty handed and the investment dream of financial security becomes the worst nightmare for them. Many instances are there when people are being robbed by builders, leading many to commit suicide as they run out options.
In 2017, about 100 home buyers who were affected due to the delayed possession gathered at the Jantar Mantar for strike against another renowned builder. The home buyers threatened to commit suicide if their complaints were not redressed.
The investors desired to see their new homes but they are left with the burden of EMIs and additional spending on rent.
In a recent verdict of Supreme Court, the division bench comprising Justice Dr Dhananjaya Y. Chandrachud and Justice K.M. Joseph had held,
“Flat purchasers suffer agony and harassment, as a result of the default of the developer. Flat purchasers make legitimate assessments in regard to the future course of their lives based on the flat which has been purchased being available for use and occupation.”
We are shining a light on an identical scam by a builder who operates in small states and mostly targets uneducated persons.
Kashish Developers Limited, the builder, has committed fraud amounting to 100s of crores along with its group of Companies Vinman Constructions Limited and Manor Infraprojects Private Limited. Kashish Developers Limited is a public limited company incorporated on December 31, 2001 which is classified as non-govt Company registered at Registrar of Companies, Jharkhand.
Manor One is the major Housing Project of Kashish Developers along with Vinman Constructions and Elite Villas situated at Sector 111, Gurugram.
The details about this joint venture available at the official website of RERA is given below
To finance the construction cost of the aforementioned project, funds have been borrowed by Kashish Developers Limited in the name of Manor One project from various banks and financial institutions. According to the cash flow statement of Manor One project, the sources of funds were receipts from allottees of apartments/plots, loan sanctioned by the banks/other financial institutions against the property and from other sources.
The Cash Flow Statement submitted by developers for the project –
The company has borrowed funds from Dewan Housing Finance Limited (DHFL) amounting to Rs 725 crore for the purpose of meeting the cost of construction. The said project was constructed with the loan assistance from DHFL. The statement from the agreement between the developer and DHFL-
The fraud begins when the funds taken from DHFL have been siphoned off and has not been used for construction purpose. The company dishonestly took money from DHFL and used it for a purpose of which it was not intended. Consequently, the customers did not get their promised residential unit despite of their hard-earned money spent on this project.
The company has borrowed funds from DHFL amounting to Rs 725 crore for the purpose of meeting the cost of construction but the actual utilization of the loan funds are not the one stated in the loan document.
The actual utilization of Rs 725 crore sanctioned by DHFL to Kashish Developers can be seen by the table given below-
Analysis of the Actual utilization of Rs 725 crore sanctioned by DHFL to Kashish Developers-
| Company | Loan Amount (In crores) | Closure Date |
| Elite Villas | 200 | 09 August 2018 |
| Manor Infraprojects | 140 | 09 August 2018 |
| Vinman Constructions (other advances) | 100 | |
| Struc- Mech Engineers | 100 | 09 August 2018 |
| No utilization stated | 185 |
Above given table clearly shows that Rs. 200 crores from the loan amount has been utilized for Elite Villas and 100-100 crores are being utilized in Vinman Constructions and Struc-Mech Engineers. The amount of Rs. 140 crores has been utilized for Manor Infraprojects. For rest 185 crores no utilization is stated.
There are many cases that are going on Kashish Developers and group companies and many complaints are registered to RERA. For Instance-
In 2019 a case was filed against Kashish developer’s ltd, Vinman Construction Pvt.Ltd and Elite Vilas Pvt.Ltd. on the project namely Manor One in National consumer disputes redressal commission (NCDRC). The grievance of the complainant is that the possession of the allotted flats has not been offered to them and the construction is also not even complete, for which they have made the substantial payment of Rs. 1,13,01,621/- to the Developers.
The complainants were before the said commission seeking refund of the said amount with compensation.
The financial observation of Kashish Developers-
Shareholders-
| S.No. | Name | Address | Amount per share | Number of shares | Total Amount |
| 1. | Sunil Choudhary | OLD AG Co- Operative, Kadru, Ranchi 834002, Jharkhand | 100 | 7,99,767 | 7,99,76,700 |
| 2. | Sushil Kumar Choudhary | Ratna Priya, 87 Old A.g colony, Kadru, Ranchi 834002, Jharkhand | 100 | 88,527 | 88,52,700 |
| 3. | Saroj Devi | Ratna Priya, 87 Old A.g colony, Kadru, Ranchi 834002, Jharkhand | 100 | 5,661 | 5,66,100 |
| 4. | Sujit Kumar Choudhary | Ratna Priya, 87 Old A.g colony, Kadru, Ranchi 834002, Jharkhand | 100 | 54,969 | 54,96,900 |
| 5. | Ajit Kumar Choudhary | House No. 87 Old A.g colony, Kadru, Ranchi 834002, Jharkhand | 100 | 10,523 | 10,52,300 |
| 6. | Rani Choudhary | OLD AG Co- Operative, Kadru, Ranchi 834002, Jharkhand | 100 | 26,021 | 26,02,100 |
| 7. | Surbhi Shree | OLD AG Co- Operative, Kadru, Ranchi 834002, Jharkhand | 100 | 8,127 | 8,12,700 |
| 8. | Ratan Priya | OLD AG Co- Operative, Kadru, Ranchi 834002, Jharkhand | 100 | 463 | 46,300 |
| 9. | Arun Kumar Mishra | EWS – 142, Harmu Housing Colony, harmu, Doranda | 100 | 2,483 | 2,48,300 |
Equity Shares are issued at a premium of INR 3,433 per share details are as under-
| Name | No. of shares | Face Value | Premium | Total Amount | Date |
| Ram Shankar Choudhary | 3,198 | ₹ 100 | ₹ 3,433 | ₹ 1,12,98,534 | 20-Dec-16 |
| Shiv Shankar Choudhary | 3,114 | ₹ 100 | ₹ 3,433 | ₹ 1,10,01,762 | 20-Dec-16 |
| Bisawanath Mandal | 2,406 | ₹ 100 | ₹ 3,433 | ₹ 85,00,398 | 20-Dec-16 |
| Rinku Mahto | 2,293 | ₹ 100 | ₹ 3,433 | ₹ 81,01,169 | 20-Dec-16 |
| Uday Kant Jha | 3,283 | ₹ 100 | ₹ 3,433 | ₹ 1,15,98,839 | 20-Dec-16 |
| Manoj Thakur | 3,255 | ₹ 100 | ₹ 3,433 | ₹ 1,14,99,915 | 20-Dec-16 |
| Arun Kumar Jha | 3,170 | ₹ 100 | ₹ 3,433 | ₹ 1,11,99,610 | 20-Dec-16 |
| Govind Ji Jha | 3,227 | ₹ 100 | ₹ 3,433 | ₹ 1,14,00,991 | 20-Dec-16 |
| Amit Choudhary | 2,321 | ₹ 100 | ₹ 3,433 | ₹ 82,00,093 | 20-Dec-16 |
| Ashok Kumar Sada | 2,378 | ₹ 100 | ₹ 3,433 | ₹ 84,01,474 | 20-Dec-16 |
| Badri Nath Jha | 3,255 | ₹ 100 | ₹ 3,433 | ₹ 1,14,99,915 | 20-Dec-16 |
| Sanjeev Kumar Jha | 3,170 | ₹ 100 | ₹ 3,433 | ₹ 1,11,99,610 | 20-Dec-16 |
| Prabhakar Mishra | 2,491 | ₹ 100 | ₹ 3,433 | ₹ 88,00,703 | 20-Dec-16 |
| Nandu Kamti | 2,010 | ₹ 100 | ₹ 3,433 | ₹ 71,01,330 | 20-Dec-16 |
| Sanjeet Mahto | 2,095 | ₹ 100 | ₹ 3,433 | ₹ 74,01,635 | 20-Dec-16 |
| Veer Bahadra Choudhary HUF) | 4,246 | ₹ 100 | ₹ 3,433 | ₹ 1,50,01,118 | 20-Dec-16 |
| Sushil Kumar Choudhary | 4,246 | ₹ 100 | ₹ 3,433 | ₹ 1,50,01,118 | 20-Dec-16 |
| Sujit Kr. Choudhary | 4,246 | ₹ 100 | ₹ 3,433 | ₹ 1,50,01,118 | 20-Dec-16 |
| Abantika Kumari | 1,156 | ₹ 100 | ₹ 3,433 | ₹ 40,84,148 | 20-Dec-16 |
| Kumar Gaurav | 1,261 | ₹ 100 | ₹ 3,433 | ₹ 44,55,113 | 20-Dec-16 |
| Puja Kumari | 741 | ₹ 100 | ₹ 3,433 | ₹ 26,17,953 | 20-Dec-16 |
| Pinku Devi | 1,191 | ₹ 100 | ₹ 3,433 | ₹ 42,07,803 | 20-Dec-16 |
| 58,753 | ₹ 20,75,74,349 |
Directors-
| S.No. | Name | Appointment date | Cessation Date |
| 1. | Dhananjay Kumar Singh | 08 August 2019 | NA |
| 2. | Mukesh Kumar | 30 March 2019 | NA |
| 3. | Ajit Choudhary | 30 September 2015 | NA |
| 4. | Sujit Kumar Choudhary | 29 March 2010 | 30 March 2019 |
| 5. | Rajeev Kumar | 30 March 2019 | 09 August 2019 |
| 6. | Trilok Nath Jha | 29 March 2016 | 30 March 2019 |
| 7. | Sushil Kumar Choudhary | 31 December 2001 | 30 March 2019 |
| 8. | Yogendra Jain | 25 March 2015 | 29 March 2019 |
| 9. | Sanjeev Kumar Singh | 12 February 2015 | 12 February 2015 |
| 10. | Sunil Choudhary | 31 December 2001 | 01 October 2015 |
Investments-
| Company | Amount | Remarks |
| Elite Villas | 98,000 | |
| Vinman Constructions Private Limited | 98,000 | |
| Kashish Media & Communications Limited | 4,75,37,910 | Under Strike Off – No financials filed. |
Intercorporate Loans & Advances (common directors and shareholders)-
| Company | Amount | remark |
| Callisto Laboratries | 1,11,36,550 | |
| Kashish Tradecom Limited | 1,59,99,836 | |
| Kashish Utility Services Limited | 31,07,048 | |
| SH Tech Park Developers Private Limited | 16,04,200 | |
| Struc- Mech Engineers Private Limited* | 57,50,000 | Interest Free loan |
| Manor Infra Projects Limited | 1,66,07,66,088 | No Information available – as documents are still pending with ROC |
DHFL has total disbursed loan of Rs 1,140 crore to Kashish Developers and other company details are here as under –
| Charge Id | Date of Creation | Modification | Closure | Amount (in crores) | Security |
| Kashish Developers Limited | |||||
| 10391498 | 09/11/2012 | 11/11/2013 | 09/08/2018 | 200 | |
| 100019379 | 31/03/2016 | 09/08/2018 | 70 | Immovable Property, Guarantee | |
| 100187969 | 24/03/2018 | 725 | Corporate Guarantee | ||
| 100120933 | 31/03/2017 | 09/08/2018 | 70 | Immovable Property, Guarantee | |
| 100179207 | 07/04/2018 | 75 | Immovable Property. |
| Vinman Constructions Limited | |||||
| 10391499 | 09/11/2012 | 11/11/2013 | 09/08/2018 | 200 | |
| 100178924 | 24/03/2018 | 725 | Immovable Property | ||
| Manor Infraprojects Limited | |||||
| 100019481 | 31/03/2016 | 09/08/2018 | 70 | Immovable Property | |
| 100120936 | 31/03/2017 | 09/08/2018 | 70 | Immovable Property | |
| Elite Villas Limited | |||||
| 100178929 | 24/03/2018 | 725 | Immovable Property | ||
| 10391496 | 09/11/2012 | 11/11/2013 | 09/08/2018 | 200 |
Some observations are-
Sunil Kumar Choudhary is taking remuneration of INR 1.2 crores from Kashish Developers but no TDS has been deducted on the payments, as auditor has already qualified the report as the company has failed to deduct Tax Deducted at Source.
No Related Party transactions disclosed.
Sunil Choudhary has taken followings payments in the form of salary from Kashish Developers but Kashish Developers have not disclosed the payments in the financials.
| Year | Amount | |
| 2008-09 | 11,00,000 | |
| 2009-10 | 42,00,000 | |
| 2009-10 | 7,50,000 | Rent Income |
| 2010-11 | 72,00,000 | |
| 2010-11 | 12,00,000 | Rent Income |
| 2011-12 | 72,00,000 | |
| 2011-12 | 13,00,000 | Rent Income |
| 2012-13 | 59,40,020 | |
| 2012-13 | 12,00,000 | Rent Income |
| 2013-14 | 4,86,00,000 | |
| 2013-14 | 5,50,000 | Rent Income |
| 2014-15 | 4,86,00,000 | |
| 2014-15 | 6,00,000 | Rent Income |
| 2015-16 | 6,00,000 | |
| 2015-16 | 3,00,000 | Rent Income |
The above table depicts the flow of money to Sunil Choudhary that is concealed by Kashish Developers Limited.
Struc – Mech Engineers Private Limited
This Company is registered with the same address on which the Kashish Developers and group of companies are registered. The Paid up capital of the company is only INR 1,00,000. Past two Directors of this Company were Sunil Choudhary and Ajit Choudhary. Sunil Choudhary was also the managing director of Kashish developers. The company has a borrowing of INR 100 crores which was repaid on the same day when Kashish Developers and group got loan from DHFL i.e. on 09/08/2018, which clearly proves that the amount of INR 725 crores disbursed to settle the dues.
Sunil Choudhary has received following payments from Struc- Mech Engineers Private Limited.
| Year | Amount (in Rs.) |
| 2008-09 | 6,00,000 |
| 2009-10 | 24,00,000 |
| 2010-11 | 1,20,00,000 |
| 2011-12 | 1,20,00,000 |
| 2012-13 | 1,05,00,000 |
| 2013-14 | 60,00,000 |
Vinman Constructions Limited
A Vinman construction Limited is a public company incorporated on 5 December 1994. It is registered at Jharkhand via CIN No. U74899JH1994PLC001806. Its authorized share capital is INR 5,00,000 and paid up capital is INR 5,00,000.
Shareholders list-
| S.No. | Name | Address | Amount per share | Number of shares | Total Amount |
| 1. | Kashish Deveopers Limited | OLD AG Co- Operative, Kadru, Ranchi 834002, Jharkhand | 10 | 9,800 | 98,000 |
| 2. | Rajeev Kumar Jha | Mandir Marg H.No.224, New A G Cooperative Colony, Argora Ranchi 834002 | 10 | 21,000 | 2,10,000 |
| 3. | Narayan Ji Jha | South Tola Raghopur Darbanga 847239, BR In | 10 | 5,000 | 50,000 |
| 4. | Manoranjan Das | Vill- Tunjo P.O Baredih, P.S – Bundu Ranchi 835204, JH, IN | 10 | 4,200 | 42,000 |
| 5. | Raghav Kumar Thakur | Village – Post – Parari, P.S Biraul, Padri, Darbhanga, Bihar | 10 | 2,000 | 20,000 |
| 6. | Sunil Mishra | Rz- 813, Gali No. 5, Main Sagar Pur, South West Delhi 110046, DL , IN | 10 | 2,000 | 20,000 |
| 7. | Arun Kumar Mishra | EWS – 142, Harmu Housing Colony, harmu, Doranda | 100 | 6,000 | 60,000 |
Directors-
| S.No. | Name | Appointment date | Cessation Date |
| 1. | Manoranjan Das | 25 July 2019 | NA |
| 2. | Sunil Kumar Mishra | 25 July 2019 | NA |
| 3. | Narayan Ji Jha | 25 July 2019 | NA |
| 4. | Naved Ahmed | 01 January 2018 | 15 October 2018 |
| 5. | Ajit Choudhary | 30 September 2015 | 25 July 2019 |
| 6. | Manish Gupta | 01 January 2018 | 15 October 2018 |
| 7. | Sushil Kumar Choudhary | 01 October 2012 | 25 July 2019 |
| 8. | Pranav Mittal | 08 May 2011 | 01 December 2012 |
| 9. | Sujit Kumar Choudhary | 27 January 2014 | 25 July 2019 |
| 10. | Sunil Choudhary | 01 October 2012 | 01 October 2015 |
| 11. | Shadab Khan | 01 January 2018 | 15 October 2018 |
| 12. | Ved Kumar Mittal | 09 August 2008 | 08 May 2011 |
| 13. | Dwarka Das Mittal | 04 November 1996 | 09 August 2008 |
| 14. | Vinod Mittal | 05 December 1994 | 01 December 2012 |
The Financial Statement of Vinman construction Limited is tabled below-
| 2018-19 | 2017-18 | 2016-17 | Remarks | |
| Cash Inflow | ||||
| DHFL Loan | 5,03,76,42,359 | 4,15,00,00,000 | – | 88 crores term loan in current FY. |
| Advances From Cosmo Infra Engineering (India) Private Limited | 15,25,00,000 | 15,25,00,000 | 15,25,00,000 | Not verifiable – Auditor Qualifications |
| Other Advances (Details not disclosed) | 98,55,00,000 | Repaid out of DHFLloan. | ||
| Cash Outflow | ||||
| Loans to Elite Villas | 60,23,24,750 | 60,23,24,750 | 60,23,24,750 | Interest free loan |
| Kashish Developers Private Ltd. | 2,87,59,93,600 | 2,43,69,23,490 | Not disclosed by Kashish Developers | |
| Advance to BCL Realcon | 15,00,00,000 | 15,00,00,000 | 15,00,00,000 | Not verifiable – Auditor Qualifications |
| Upendra Dalal | 25,00,000 | 25,00,000 | 25,00,000 | Not verifiable – Auditor Qualifications |
| Paratus Real Estate Pvt. Ltd. | 7,96,00,000 | 1,00,00,000 | Undisclosed by Paratus | |
| Earthcon Realty Pvt. Ltd. | 7,74,00,000 | 20,00,000 | ||
| Noorsons International | 1,50,00,000 | 1,50,00,000 | ||
| Other Advances | – | – | 55,87,12,602 | Not verifiable – Auditor Qualifications |
| Inventories | 42,75,83,654 | 42,75,83,654 | 42,75,83,654 | Not verifiable – Auditor Qualifications |
These are the observations-
Elite Villas Limited
Elite Villas was incorporated on 2 September 2006. It is registered at Jharkhand via CIN No. U70109JH2006PLC001366.
Directors-
| S.No. | Name | Appointment date | Cessation Date |
| 1. | Manoranjan Das | 25 July 2019 | NA |
| 2. | Sunil Kumar Mishra | 25 July 2019 | NA |
| 3. | Narayan Ji Jha | 25 July 2019 | NA |
| 4. | Naved Ahmed | 01 January 2018 | 15 October 2018 |
| 5. | Ajit Choudhary | 30 September 2015 | 25 July 2019 |
| 6. | Manish Gupta | 01 January 2018 | 15 October 2018 |
| 7. | Sushil Kumar Choudhary | 30 July 2012 | 25 July 2019 |
| 8. | Sujit Kumar Choudhary | 27 January 2014 | 25 July 2019 |
| 9. | Sunil Choudhary | 28 July 2012 | 01 October 2015 |
| 10. | Shadab Khan | 01 January 2018 | 15 October 2018 |
| 11. | Jwala Prasad Agarwal | 28 November 2009 | 28 July 2012 |
| 12. | Navneet Kumar | 02 September 2006 | 30 July 2012 |
Shareholder-
| S.No. | Name | Address | Amount per share | Number of shares | Total Amount |
| 1. | Kashish Deveopers Limited | OLD AG Co- Operative, Kadru, Ranchi 834002, Jharkhand | 10 | 9,800 | 98,000 |
| 2. | Rajeev Kumar Jha | Mandir Marg H.No.224, New A G Cooperative Colony, Argora Ranchi 834002 | 10 | 21,000 | 2,10,000 |
| 3. | Narayan Ji Jha | South Tola Raghopur Darbanga 847239, BR In | 10 | 5,000 | 50,000 |
| 4. | Manoranjan Das | Vill- Tunjo P.O Baredih, P.S – Bundu Ranchi 835204, JH, IN | 10 | 4,200 | 42,000 |
| 5. | Raghav Kumar Thakur | Village – Post – Parari, P.S Biraul, Padri, Darbhanga, Bihar | 10 | 2,000 | 20,000 |
| 6. | Sunil Mishra | Rz- 813, Gali No. 5, Main Sagar Pur, South West Delhi 110046, DL , IN | 10 | 2,000 | 20,000 |
| 7. | Arun Kumar Mishra | EWS – 142, Harmu Housing Colony, harmu, Doranda | 100 | 6,000 | 60,000 |
The Financial Observations of Elite Villas Limited is as follows-
| 2018-19 | 2017-18 | 2016-17 | Remarks | |
| Current Liabilities | – | |||
| Vinman Constructions Limited | 60,23,24,750 | 60,23,24,750 | – | Verified with Vinman Constructions |
| Short Term Loans and Advances | ||||
| Share Application Money Given | 27,12,03,179 | 27,12,03,179 | 27,12,03,179 | |
| Inventories (Land at Gurgaon) | 28,02,27,030 | 28,02,27,030 | 28,02,27,030 |
Elite Villas Ltd. has borrowed sum of INR 200 crores from DHFL but the utilization of the said amount could not be ascertained as the financials of Elite Villas does not disclose any detailed transactions nor any party wise transactions. Further no details have been provided regarding Share Application Money given as per the balance sheet for last 3 years amounting to INR 27 crores and no Party related Transactions have been disclosed.
Paratus Real Estates Private Limited
| Name | Address | Loan by Vinman Constructions (2018-19) |
| Paratus Real Estate Private Limited | T-70, Sector – 7, Jasola Vihar Extn., Delhi – 110025 | 7,96,00,000 |
| Earthcon Constructions Private Limited | T-70, Sector – 7, Jasola Vihar Extn., Delhi – 110025 | 7,74,00,000 |
The Company is engaged in real estate activities, registered at T-17 , DDA Flats , Sector – 7, Jasola Vihar Extention., Delhi South.
Read Also: New management finds old owners engaged in fraud, Delhi HC asks relevant ministry to take action
The company is subsidiary of Earthcon Constructions private Limited which is also registered at same address i.e T-17 , DDA Flats , Sector – 7, Jasola Vihar Extn., Delhi South.
Diretors
| Name | Address | Date of Appointment |
| Shadab Khan | T-70, Sector – 7, Jasola Vihar Extn., Delhi – 110025 | 20 May 2013 |
| Mukarram Ali | T-70, Sector – 7, Jasola Vihar Extn., Delhi – 110025 | 22 November 2014 |
Financial Irregularities
- Paratus Real Estate has not disclosed any related party transaction.
- Company is a loss making, with total shareholders’ funds as INR 7.8 crores and even the loan provided by Vinman is more than the total shareholders’ funds.
In the FY 2017-18 , the loan by Vinman Constructions is as follows –
| Name | Address | Loan by Vinman Constructions (2017-18) |
| Paratus Real Estate Private Limited | T-70, Sector – 7, Jasola Vihar Extn., Delhi – 110025 | 1,00,00,000 |
| Earthcon Constructions Private Limited | T-70, Sector – 7, Jasola Vihar Extn., Delhi – 110025 | 20,00,000 |
The loan amount has increased by a substantial amount i.e from 1 crores to 8 crores approximately and from 20 lakhs to 7.7 crores.
Now, as per the analysis, the provisions of various Acts under which the offences committed by aforementioned companies are governed are as follows-
Companies Act, 2013, RERA 2016, Indian Penal Code, 1860, SEBI Act, 1992and Income Tax Act, 1961. The violated provisions of the given acts are as follows-
| Diversion and Siphoning off Money- | The company has borrowed funds from DHFL amounting to INR 725 crores for the purpose of meeting the cost of construction but the actual utilization of the loan funds is not the one stated in the loan document. |
| Fraud u/s 447 of Companies Act 2013 and Section 1 2 of SEBI and Cheating u/s 420 of Indian Penal Code 1860 | – The financials of the company does not represent the true and fair view of the company affairs , as for instance – The financials of Vinman Constructions have various items like inventory, loans and advances of which amount is just a brought forward from previous years and no verification or justification is provided. |
| Section 177,184 of Companies Act, 2013 along with section 129 and 133 of the Companies Act, 2013 | Companies are required to report the related party transactions but no Related Party Disclosures have been made anywhere, all companies have tried to conceal the related party transactions to cheat the stakeholders as well as public at large, for which Directors can be held responsible can attract provisions of disqualifications. |
| Section 60 of RERA | Section 60 of RERA says if the promoter has submitted false information to the RERA authorities, he shall be liable to a penalty which may extend up to 5 % of the estimated cost of the real estate project, as determined by the authority. |
| Tax Evasion (Section 276C of Income Tax Act) | As the companies have not disclosed any inter-corporate loans received from Vinman Constructions Limited, the huge inter-corporate loans for instance loan of INR 300 crores given by Vinman Constructions Private Limited to Kashish Builders Limited would have been treated as deemed dividend u/s 2(22)(e) and would have been taxable @ 30% .Above all the Kashish Developers Limited and Struc Mech Engineers Private limited has concealed the amount of remuneration given to Director Sunil Choudhary (Politician as well) amounting to INR 20 crores. |