Analjit Singh

Infra LIVE May 15, 2022 Table-3: Max Estates Ltd issued shares of Rs 10 each at par value to Max Ventures and Industries Ltd Date No. of shares Amount (Rs cr) Distinctive No. From To On Inc. 50,000 0.05 1 50,000 15.09.2016 2,000,000 2.00 50,001 2,050,000 26.09.2016 2,500,000 2.50 2,050,001 4,550,000 30.09.2016 1,150,000 1.15 4,550,001 5,700,000 30.11.2016 2,300,000 2.30 5,700,001 8,000,000 FY17 8,000,000 8.00 10.08.2018 50,000,000 50.00 8,000,001 58,000,000 28.11.2018 10,000,000 10.00 58,000,001 68,000,000 FY19 60,000,000 60.00 06.12.2019 5,050,000 5.05 68,000,001 73,050,000 20.03.2020 4,860,000 4.86 73,050,001 77,910,000 FY20 9,910,000 9.91 Total 77,910,000 77.91 Projects Pvt Ltd. As Wise Zone was not a subsidiary company of BPPL as on the date of issue of letter (May 30, 2018), the revise sanction plan was apparently not a valid sanction plan of Wise Zone, the wholly owned subsid- iary company of Max Estates Ltd. It is high time that the reputed companies like Max Group follow the best ethical practices and deposit the transfer charges and stamp duties on their own, without any further delay. In its Performance Audit report, the C&AG has already determined payable amount of Rs 4.41 crores as change in shareholding (CIS) Charges. Further, it was found that the lessee BPPL had the outstanding dues of Rs 874.46 cr. Noida authority should also investigate as to how BPPL was allowed to sub-lease a part of the Plot (C-01B of Sector 16B of 40,556 sqm) to a third party even when the project was not com- pleted after seven years and there were outstanding dues of several hundred crores against the BPPL as on the date, post four times re- schedulements of payment of dues. 2017, without paying the stamp duty based on an old certificate issued by the RoC, Kanpur. As Max Estates Ltd is the actual beneficiary (being the holding company of Wise Zone as on April 29, 2017) of the transaction, Noida authority should levy heavy penalty along with requisite CIS / transfer charges and stamp duty on the transaction. Pending payment of penalty, CIS/ Transfer charges/ Stamp duty, all further transactions viz sale/ purchase of commercial /official space, flats etc in the project should be forthwith stopped. Wise Zone, the wholly-owned subsidiary of Max Estates Ltd, has uploaded the revised sanction plan of the Project Max Towers approved by the Noida Authority on May 30, 2018 as 100 per cent subsidiary of the Boulevard Project Pvt Ltd on the website of UP RERA, though Max Estates had acquired Wise Zone more than a year earlier on April 29, 2017. In the revised sanction letter, the Noida authority has issued several instructions to Wise Zone as a subsidiary com- pany of the Lessee Boulevard Expert view: RBSinha RetiredDGof C&AGof India Ex-Member of RERA, Bihar It is an established fact that Wise Zone Builders Pvt Ltd was acquired by Max Estates Ltd on April 29, 2017. It was therefore apparent that Vidur Bharadwaj, the director of the Boulevard Projects Pvt Ltd (BPPL) and Rajiv Bhargav, Director of the Wise Zone Builders Pvt Ltd havemisled the Noida Authority to get the sublease of 3,352 sqm of Plot (C- 01B of Sector 16B) done in favour of Wise Zone Builders Pvt Ltd as 100 per cent subs i d i ary o f Boulevard (BPPL) on April 29, Analjit Singh www.infralive.com 23 band Sahil Vachani owns the bal- ance 50 per cent. The shareholding of the above companies can be seen in chart-C at pg 25. In Max Estates, Max Industries has invested Rs 77.91 crore in equity, and Rs 571.64 crore (FY 21) in the form of zero coupon compulsory convertible deben- tures (CCDs), as on March 31, 2021. The break-up of this Rs 571.64 crore investment under zero cou- pon CCDs is Rs 202 cr (FY21), Rs 17.77 cr (FY20), Rs 261.87 cr (FY19), and Rs 90 cr in FY18. The details are shown in table-2 at pg 22. The break-up of Rs 77.91 crore equity is Rs 9.91 cr (FY20), Rs 60 cr (FY19), Rs 8 cr (FY17) and Rs 5 lakh (FY16). The details are shown in table-3 at pg 23. Shifting of assets from Piveta in questionable manner to Max Estates, which is a 100 per cent owned company of BSE listed Max Industries, needs thorough probe. by their family members. Siva Enterprises is owned by Tara Singh Vachani (50 pc), daughter of Analjit Singh, while her hus-