Analjit Singh

Analjit Singh www.infralive.com 20 Infra LIVE May 15, 2022 is shown in the related party transaction in the FY18 statement of Piveta (see scan-1 at pg 26). Please note the chronology, Wise Zone comes into existence in 2016 as a 100 per cent subsidiary of Boulevard. Piveta enters into an agreement with Wise Zone in 2013, even before it has come into existence. The record shows that Piveta had entered into an agreement dated September 3 or 4, 2013 with Boulevard Projects. This was fol- lowed by two agreements both dated July 27, 2016. Till April 2017, Piveta had paid Rs 377.48 crore to Wise Zone. But, suddenly on February 5, 2018 it cancelled the lease agreement and in that financial year (FY18), a write off of Rs 316.49 crore in the balance sheet of Piveta was shown. The assets and liabilities of Wise Zone was pegged at Rs 571.49 crore in FY18 (Nil in FY17). Many companies such as SGM Webtech Pvt Ltd, Ridaan and Ruhan Buildwell Pvt Ltd, Ziasess Ventures Ltd etc, Boulevard Pro- jects DelhiOne Resident Welfare Association, and individual cus- tomers like took Boulevard to NCLT for recovery of their invest- ments under the IBC process, barring Piveta. Under the Insolvency and Bank- ruptcy Code, 2016 (IBC) a claim- ant having Rs 1 crore or more unpaid amount can approach the National Company Law Tribunal (NCLT) to initiate insolvency and bankruptcy proceedings. On the other hand, on March 22, 2016 Max Estates Ltd was incorporated as 100 pc owned subsidiary of BSE listed Max Ven- tures and Industries Ltd. On April 29, 2017, Noida authority, Boulevard and Wise Zone entered into a sub-lease deed in which a part of the total land measuring 3,352 sq mtr was sub-leased in favour of Wise Zone as C001A/1, Sector 16B, Noida. The lease amount was also divided on pro-rata basis which worked out to be Rs 44.08 crore out of which Rs 4.41 crore had already been paid by Boulevard to the Noida Authority. The balance of Rs 39.67 crore was to be paid by Wise Zone in easy half-yearly instalments as per the originally agreed schedule at the time of original lease deed. The above said sub-leasing was possible only because Wise Zone was declared to the Noida author- ity as 100 pc owned by Boulevard. Besides, because of this, even the payment of stamp duty was Cyprus on July 31, 2008 and it is 100 pc owned by Green Park through its 100 pc subsidiary Hermen Guardian Ltd based out of British Virgin Islands. The ulti- mate beneficiary of these foreign based firms is Red Fort India Real Estate Fund I L.P which is a lim- ited partnership firm registered in Cayman Islands. No further detail of Green Park is available in records. Their shareholding rela- tionship can be seen in chart-A at pg 20. The linkages and beneficia- ries of these companies siting abroad are still being investigated by us. A brief on Ziasess invest- ment in Boulevard is given in Box- A at pg 29 to 31. Boulevard Projects got 40,056.72 sqm land at C001A, Sector 16B Noida on 90-year lease for Rs 527 crore. Ten per cent of that amount was already paid. Balance of Rs 474.30 crore was to be paid in 16 half yearly instal- ments after availing moratorium of first four halves ie two years. The last instalment was to be paid on June 16, 2020. As per the terms of lease/sub- lease deed, the Project was to be completed within 5 years. The share of lead member in the SPC was not to be reduced below 26 per cent until the first phase attained completion. The lessee was required to complete the con- struction of the project and obtain the completion certificate of the project in maximum five phases within 5 years from the date of execution of the lease deed. Some of the relevant terms and condi- tions of the said lease deed is reproduced in Box-B at pg 31-32. In the meantime, on October 27, 2016 Boulevard Projects incor- porated Wise Zone Builders Pvt Ltd as its wholly owned subsid- iary. The RoC record shows that Max group's company called Piveta Estates Pvt Ltd (which is 99 pc beneficially owned by Analjit Singh and his wife Neelu Analjit Singh) entered into an agreement dated September 3, 2013 with Wise Zone for taking 5 lakh sq ft on lease for Rs 489.31 crore. This Red Fort India Estate Fund I, L.P., Cayman Islands Green Park Buildwell Hermes Guardian Ltd, Bri sh Virgin Islands Ziasen Ventures Ltd, Cyprus Boulevard Projects Pvt Ltd, India Wise Zone Builders Pvt Ltd, India 100% 100% 100% 0.01% 100% (Till 28/29 April 2017) 99.99% Chart-A