This document is a complaint letter against M/s.Royal Splendour Developers Pvt. Ltd., a real estate company that has taken loans from three banks - Bank of India, Catholic Syrian Bank, and Dhanalakshmi Bank - and allegedly misused and diverted the loan funds. The letter alleges that the company directors are involved in banking fraud and that the resolution professional is supporting bogus claims and insisting the banks accept a 50% haircut on loan principal without proper legal basis, even though the banks hold sufficient collateral. The letter asks the banks to clarify their position on accepting a haircut and the resolution professional's authority to insist on it.
This document is a complaint letter against M/s.Royal Splendour Developers Pvt. Ltd., a real estate company that has taken loans from three banks - Bank of India, Catholic Syrian Bank, and Dhanalakshmi Bank - and allegedly misused and diverted the loan funds. The letter alleges that the company directors are involved in banking fraud and that the resolution professional is supporting bogus claims and insisting the banks accept a 50% haircut on loan principal without proper legal basis, even though the banks hold sufficient collateral. The letter asks the banks to clarify their position on accepting a haircut and the resolution professional's authority to insist on it.
This document is a complaint letter against M/s.Royal Splendour Developers Pvt. Ltd., a real estate company that has taken loans from three banks - Bank of India, Catholic Syrian Bank, and Dhanalakshmi Bank - and allegedly misused and diverted the loan funds. The letter alleges that the company directors are involved in banking fraud and that the resolution professional is supporting bogus claims and insisting the banks accept a 50% haircut on loan principal without proper legal basis, even though the banks hold sufficient collateral. The letter asks the banks to clarify their position on accepting a haircut and the resolution professional's authority to insist on it.
This document is a complaint letter against M/s.Royal Splendour Developers Pvt. Ltd., a real estate company that has taken loans from three banks - Bank of India, Catholic Syrian Bank, and Dhanalakshmi Bank - and allegedly misused and diverted the loan funds. The letter alleges that the company directors are involved in banking fraud and that the resolution professional is supporting bogus claims and insisting the banks accept a 50% haircut on loan principal without proper legal basis, even though the banks hold sufficient collateral. The letter asks the banks to clarify their position on accepting a haircut and the resolution professional's authority to insist on it.
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Complaint against the Borrower M/s.Royal Splendour Developers Pvt. Ltd.
diversion and Misuse of loan amounts of Public sector Banks.
REPLYREPLY ALLFORWARD Mark as unread Makesh subramanian <sammakesh@hotmail.com> Mon 8/20/2018 3:38 PM Hide recipients To: rajasreeuk@dhanbank.co.in; Cc: dlb.kottayam@dhanbank.co.in; guindy@csb.co.in; rramanan@csb.co.in; bejoyverghees@csb.co.in; Risk Management Credit Monitoring Chennai; Chennai Zonal Office; Asset Recovery Department- Chennai; Mount Road;
1.Bank of India Mid Corporate Branch Tarapore Towers Mount Road, Chennai
2.Catholic Syrian Bank CSB Bhavan Thrissur Kerala
3.Dhanalakshmi Bank Thrissur
Respected Sirs/Madam I draw your attention in the insolvency process initiated against the Chennai based real estate and construction company M/s.Royal Splendour Developers Pvt. Ltd. The 1 to 3 of you have sanctioned various credit facilities to the said company on different periods. To secure your credit facilities the said Company has mortgaged/hypothecated its receivables, fixed assets, book debts and immoveable properties as primary and collateral securities. I understand MoD has been registered in respect of the immoveable properties which is valued more than the outstanding of your Banks. Having availed the credit facilities I understand the said company has misused and diverted the funds to some third party companies and individuals. As a result the accounts of the said company have become NPA. Before the Banks as a secured creditors have taken steps to recover the dues the said company was declared moratorium in a company petition filed by MR Ventures a financial creditor for a meager amount of 2 lakh. I feel the MR Ventures is set up by the company M/s.Royal Splendour Developers Pvt. Ltd.to cheat the Bank dues and other Financial and Operational Creditors. At this Juncture the Resolution Professional called for a meeting of one group of Home buyers yesterday(13.08.2018) and wanted them to choose some options which was created by her. I am also one of the home buyer in the said company. In the meeting the Resolution Professional Ms.Kavitha Surana insisted the Home buyers to accept any one of the options which was suggested by her. Mainly she quoted that the secured creditor Banks 1 to 3 of you have agreed for major haircut(i.e 50% in principal amount). It is unbelievable to say that a company which is having crores worth assets cannot pay a sum of Rs.2lakh. Obviously it appears that the company under liquidation M/s.Royal Splendour Developers Pvt. Ltd. has taken all steps to cheat the secured Creditor Banks and other Creditors. I feel the Directors of the company M/s.Royal Splendour Developers Pvt. Ltd. is indulged in big banking Fraud like famous creditors who left the countries and still in the talks of the Country. Besides, I suspect that the RP has accepted nearly 40 home buyers (fake claim) claim in respect of Advya Project without proper KYC documents. I feel there are no proper documents for payment of money in respect of 40 home buyers. I feel all these 40 claims are fraud and set up by the liquidation company. The Resolution Professional has admitted that claim without proper documents. Tomorrow in case if the resolution plan is accepted the company will develop the 40 Flats and will sell for nearly 20crores. I strongly suspect that the RP is also supporting the fraud and bogus claim set up by the liquidation company M/s.Royal Splendour Developers Pvt.Ltd. without proper KYC. As SRO details the company has sold only 35 Flats and UDS in Advya Project. Not only that the premium FSI is also is eligible to construct further in the Advaya Project at Porur. Without looking into all those materials the RP is canvassing the secured Creditor Banks to accept for haircut of 55% in the principal amount while there is every possibilities to recover the Banks entire dues. I understand so far no Resolution Applicant is proposing any options except a consultant/Broker that to on terms of 3% commission to bring a resolution Applicant. In such circumstances without any proper/legal letter from M/s Jain Builders, how the RP allowed the Jain Builder to contact the Liquidation Companies Home Buyers is also a suspicious. The liquidation company directors are liable to be prosecuted by conducting proper CBI enquiry for diversion of funds to third parties and for other projects. At this juncture it is highly appreciated the following information’s are disclosed by 1 to 3 of you as a secured creditor. 1. Is it true that 1 to 3 of you have agreed to haircut of 50% in the principal amount which was sanctioned and disbursed by you.
2. If so, is it mandatory to accept 50% haircut in the Principal amount sanctioned by 1 to 3 of you when 1 to 3 of you have sufficient security of moveable and immoveable properties.
3. Whether the Resolution Professional of the Company under liquidation M/s.Royal Splendour Developers Pvt. Ltd. can insist 1 to 3 of you since you are a secured creditor to accept for the 50% haircut in the principal amount. If so which provision of Insolvency and Bankruptcy Code empowers the Resolution Professional to do so.
