Analjit Singh

Analjit Singh www.infralive.com 21 Infra LIVE May 15, 2022 altered from 29 to 28, but in fig- ures it is written as “Twenty Ninth” (see scan-2 at pg 27). In order to find out the truth, we applied for the certified copy of the same with the Noida author- ity. We found that the said sub- lease deed was registered on April 29, not April 28 (see scan-3 at pg 28). Further scrutiny of the entire document revealed that three corrections were done on page 7 of the sub-lease deed and the same has been countersigned by all the three parties (see scan-4 at pg 26). This shows that the cor- rection done for the date on page 1 was deliberate done to conceal the change in ownership of Wise Zone from Boulevard to Max Estates in order to deceive the Noida authority. The importance of retaining ownership with Boulevard is further revealed from the fact that Wise Zone had to submit to Noida authority a confirmation certificate dated March 7, 2017 from the registrar of companies, Kanpur that Wise Zone is 100 per cent owned by Boulevard. Noida authority has many questions to answer. First, Boulevard was in default of payments, and even after rescheduling the instalments four times, they could not clear the dues. Without clearing dues, the Noida authority could not have signed the sub-lease deed. CAG in its report of November 18, 2021 has pointed out dues of Rs 874.46 crore from this project. Relevant part of the same is reproduced in Box-C at pg 32 . Second, Noida authority could not have sub-divided the lease deed if it had prior information that there would be a change in ownership the very next day. Third, creation of sub-division in this manner has resulted in substantial loss to the Noida authority because: (i) of Rate differential between 2010 and 2017, (ii) smaller sizes plots are sold with higher reserve price, and (iii) of loss on the waiver of stamp duty. Four, the Noida authority could have issued completion or tempo- rary occupation certificate only for an integrated project. Issuing com- pletion temporary occupation cer- tificate for part of the project is in violation of sub-lease deed. Besides, the above issues which the Noida authority must see, there are other substantial issues which have remained unanswered: - 1. Wise Zone was incorporated on October 27, 2016. But three years before its incorporation, as per filing with RoC, on Sep- tember 3, 2013 Piveta Estates Pvt Ltd entered into an agree- ment with Wise Zone Builders Pvt Ltd for taking 5 lakh sq ft on lease for Rs 489.31 cr. 2. Why did Pivetta cancel its agreement with Wise Zone? 3. Pivetta had written off Rs 316.49 crore in FY18 due to its Noida project. But it has not so far filed any proceedings against the company for recov- ery of Pivetta dues? 4. Friendly write-off has substan- tial impact on payment of Income Tax to the tax authori- ties. But, from the balance sheet it is being added under accumu- lated losses. Detailed questionnaires to Analjit Singh and his son-in-law Sahil Vachani, who is also one of the directors of Piveta, was sent with the following covering mes- sage: - exempted. In this regard, the relevant para of sub-lease deed is reproduced below: - 27. This sub leased deed is exempted for payment of stamp duty vide Finance Department Notification No. M-599/X-501 dated March 25, 1942 issued by State Govt in exercise of the powers conferred by clause(a) of section 9 of the Indian Stamp Act 1899 (11 of 1899) as this deed is regarding transfer of property between the compa- nies in which holding com- pany Boulevard Projects Pvt Ltd is beneficial owner of 100 pc of the issued share capital of the transferee company Wise Zone Builders Pvt Ltd. As per the sub-lease deed, all the original terms & conditions were to be followed including the conditions of rollout and also conditions on retaining the origi- nal promoters. It was also clearly stated that the plans will be approved as an integrated pro- ject. The relevant part of the same is reproduced as image at pg 32. The very same day of the above stated sub-lease deed, Max Estates acquired Wise Zone on April 29, 2017. In this regard, Max Estates in its FY18 report filed before the RoC has stated, “During the year under review, the Company acquired 100 pc shareholding of Wise Zone Build- ers Pvt Ltd (“Wise”) on April 29, 2017 from Boulevard Projects Pvt Ltd with an exclusive right on Max Tower housed within the Company, located in the Delhi One Complex, Noida. Noida Authority also recognized the change in shareholding pattern of Wise vide their letter dated October 26, 2017.” Later, on August 28, 2020 Wise Zone changed its name to Max Towers Pvt Ltd. Nowhere, cost of acquisition of Wise Zone has been disclosed. Our investigations revealed that on the first page of the said sub-lease deed the date had been Table-1: Max Ventures Investment Holdings Pvt Ltd (Rs cr) Loss in related party loans FY Paid finance charges Earned Interest 18 276.04 246.12 19 200.66 227.56 20 281.62 214.57 21 203.60 141.80 961.92 830.05 Loss 131.87 Loan, investment & advance 20 Mostly to related parties 2,072.61 21 3,520.20