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Pawan Kumar Ruia finds himself midst of allegations…
“A man who has never gone to school may steal a freight car; but if he has a university education, he may steal the whole railroad.”
― Theodore Roosevelt
Theodore Roosevelt, the great visionary, predicted the erratic behaviour of the skilled. Skills, knowledge, money, and power strengthen the individuals but at the same time, provide them with something beyond their control, and that is the witts to cheat.
Similar, is the case of Pawan Kumar Ruia, the founder of PKR Groups. Known for taking over the ailing companies and transforming them into assets, Pawan Kumar Ruia gained maximum ascendancy, from the year 2003.
His stigma led him to take over Jessop in the same year, followed by the Dunlop acquisition in the year 2005. However, the stigma could not remain intact for long. Soon, Pawan Kumar Ruia was baffled by his procurements, which eventually led him to the path of corruption. Perhaps, the avarice, hidden, emerged with the heat of power.
Money Laundering, Pawan Kumar Ruia goes with the trend of crooks
- In 2013, Falcon Tyres Ltd and Dunlop India Ltd were accused of Money Laundering.
- In 2013, RBI approached Suryamani Financing for a banking license.
Pawan Kumar Ruia claimed that his firm Suryamani Financing, was capable of setting up a bank, but his confidence soon waned when the RBI started a mandatory investigation for financial licensing.
In the preliminary investigation itself, the Enforcement Directorate (ED) sensed the dubious and spotted the traces of money laundering.
What is Money laundering?
Money laundering is a complex process that involves concealing the true origin of illegally obtained funds by making them appear as if they were obtained through legal means. This is achieved by engaging in a series of financial transactions that are carefully designed to obfuscate the original source of the money. The ultimate goal of money laundering is to allow criminals to enjoy the proceeds of their illegal activities without arousing suspicion or detection by law enforcement agencies. Money laundering is a serious criminal offense that is often associated with a wide range of illicit activities such as drug trafficking, fraud, corruption, and organized crime.
Falcon Tyres Ltd and Dunlop Ltd, used facades of Hawala companies to manipulate the financial transactions made by the company heads.
Ruia Group of companies desired to make a secretive circular transaction, which was unveiled by the authorities.
Falcon Tyre Ltd account records professed a loan of Rs 165 crores. Two companies of the mother group, PKR, namely, Manali Properties and Finance Pvt Ltd sanctioned the loan amount of Rs 165 Crore to Falcon Tyre Ltd. However, shrewdly this loan was nullified by the PKR group. As the group, allocated the loan command among three Hawala firms, named as, Suncap Commodities Ltd, Regus Impex Private Ltd and Salputri Commerce Pvt Ltd.
Scheming the amount, FTL allotted the shares of its firm to the Hawala firms, and the transaction was made within the game planners, resulting in a complete circular flow of money.
Although the fallacious transaction was in vain, yet, it unlatched several doors for PKR groups.
Pawan Kumar Ruia needed a back-door entry as he closed all the paths, with his rapid pace in the past.
In the year 2008, Shalini Properties and Developers Pvt. Ltd and SPR Resorts Ltd (firms under Pawan Kumar Ruia group) took a loan of Rs 575 crores from ICICI bank. This loan was sanctioned by the bank on behalf of a mortgage, embodying a 58.5-acre plot in Athipattu village (Chennai), along with the shares of Dunlop India Ltd. and Falcon Tyres Ltd.
However, the catch is that Pawan Kumar Ruia had already sold the same plot in 2007 to a subsidiary, using the title of Dunlop India Ltd.
A jaw-dropping joke from Pawan Kumar Ruia.
The scam not merely bluffed ICICI but also, reduced the share value of DIL, barehanding the bank.
Penalizing the fraudster, the Kolkata High Court ordered Pawan Kumar Ruia to transfer back the properties to Dunlop India Ltd.
The order petrified Pawan Kumar Ruia, as it might result in the invoking of second collaterals by ICICI, providing ICICI with all rights to change the management of the companies (FTL & DIL).
To rescue the situation, Pawan Kumar Ruia sketched the above-mentioned money laundering scheme. However, it is worth mentioning that this is not the sole money laundering case executed by Pawan Kumar Ruia. A similar, strategy was implemented in the money laundering of Rs 60 crores via Dunlop India Ltd.
ED report on Pawan Kumar Ruia Group
ED report tracked down the awful act of issuing an interest-free loan of Rs 144 crores by a company with paid-up capital of Rs 1.11 crores. The ED report claims that the firm Manali Properties, under the PKR group, is framing null transactions.
ED report stamps the fraud with the help of a riveting description on how, the issuing of convenient shares against the loan, mitigated the rights of ICICI over the shareholdings of FTL and DIL.
Also, the three mentioned firms, authorized for the loan recovery are non-existential in the record of legit firms.
An arrest led by Railways, fleshing out Pawan Kumar Ruia Scam
Chairman of Ruia Group, Pawan Kumar Ruia was arrested on his birthday by the West Bengal CID officers under heavy police escort.
It was dated December 10, 2016, when around 10:30 p.m., Pawan Kumar Ruia was arrested from his New Delhi residence. Around midnight he was brought to the CID headquarters Bhawani Bhavan, based on the complaint lodged by Indian Railways at the Dum Dum police station.
Pawan Kumar Ruia has proved his skills in manipulating facts in the past years. When it comes to monetary gains Pawan has all the witts to win over the world.
In the year 2016, the accused was charged with various sections of the Indian Penal Code, namely IPC 406, 409, 436, 201, 120B & 420.
Pawan Kumar Ruia was found guilty of breaching the laws at various levels, starting from dishonesty to scamming Indian Railways. However, reportedly, in this case, Pawan Kumar Ruia plotted a theft at his own factory.
Fire Ablazes at the painting department of the Jessop factory in the Dum Dum premises on October 17, 2016. The factory fumes in less than an hour, however, it was reported that after the fire broke, it continued to erupt at several turns starting from the reported time, when the clock struck 6:45 pm.
Allegedly, the fire was fumed to frame a plot for the theft of valuables from the factory. And the allegations, spread like a forest fire. Eventually, this resulted in a probe ordered by the Chief Minister, Mamta Banerjee.
This probe made the pioneer of the 59th year of Pawan Kumar Ruia, his first day under custody. Although Pawan Kumar Ruia took no time to resign from his designation as the Chairman of Jessop, the case could not be curbed by Ruia’s tactics. The plea of Ruia did not heed the heads of the CID
Pawan Kumar Ruia guilty of Rs 50 Crore scam?
Indian Railways pleaded to the law, that Jessop and Co., a Ruia Group firm must be made answerable in front of the justice.
According to the Railways, Pawan Kumar Ruia was provided with assets worth 50 Crore. He was made responsible for delivering wagons worth the assets provided. However, the Wagons were never delivered to the Railways, instead, Jessop and Co., resulting in the dissipation of valuables, merely.
The Railways doubted the intentions of the industrialists and claimed that Pawan Kumar Ruia was intentionally stripping off the railways in the name of fire eruptions.
Here are some facts that need to be analyzed before jumping to conclusions.
- CID officers asserted that Pawan Kumar Ruia was in touch with the railways, and executed his rights as the Chairman of Jessop and Co., even after formally relinquishing his responsibilities.
- The investigation officers also claimed to discover a notice that reads that the right to action of Pawan Kumar Ruia will continue to function, even after his dismissal.
- A joint inspection of railway authorities and CID discovered the missing equipment and machinery in the Jessop Factory. The valuables were sent to Jessop on behalf of Indian Railways by BHEL ( Bharat Heavy Electricals Ltd.)
- Pawan Kumar Ruia dealt with Dubai-based Jumbo Group to get deplete of all of the holdings of DIL, FTL and Jessop.
- CM Mamta Banerjee said that there have been 91 cases of theft between the years 2010-2015, along with 2 fire eruption cases.
One Last Chance | How many times?
Pawan Kumar Ruia brutally fails to extract profit from his strategic purchase of ailing firms.
In recent years Pawan Kumar Ruia has witnessed varying phases of his career. From being a ‘turnover tycoon’ to being accused of theft.
The Founder of Ruia Group, Pawan Kumar Ruia saw an intensively favourable span in the initial days of his career. But, after a decade at work, he was accused of several frauds. Rather, it can be said that the triumph of Ruia has been proportional to the former Left Front Leadership. As the state’s government flipped in favour of CM Mamta Banerjee, the stars of Ruia Groups started diminishing.
Stake holdings of Dunlop and Jessop Co. was a courageous and strategic move by Pawan Kumar Ruia. This move was hailed by everyone, in the age of unemployment. However, the summing-up of the two was not as expected.
Eventually, 2016 became the year when the state passed two bills- Jessop and Company Ltd (Acquisition and Transfer of Undertaking) Bill and Dunlop India Ltd (Acquisition and Transfer of Undertaking) Bill, for procuring the command over the firms.
Although few of the leaders wanted to aid Pawan Kumar Ruia and stood for him, the then state labour minister, Purnendu Bose acclaimed that Pawan Kumar Ruia would get ONE LAST CHANCE; in 2014.
On the contrary, the state’s parliamentary affairs and education minister, Partha Chatterjee, believed that Pawan Kumar Ruia was never interested in operations but in the real estate value of the firm.
In recent months, the Fire Minister & Kolkata Mayor, Sovan Chatterjee, claimed evident foul play in the fire eruption, supporting the judgements made by Partha Chatterjee.
However, in the midst of countercharges, here is a point to ponder. The Indian Railways accused a mere Individual of deceiving the entire Railways, is it worth providing him another chance?
The answer could vary on behalf of people’s prudence, but one thing that might concern each of the readers is the absenteeism of Pawan Kumar Ruia from the court proceedings.
Pawan Kumar Ruia has failed to turn up before the Crime Investigation Department, regarding the fire eruption case. As for now, the accused is facing a few ailments, which are being treated at the Moolchand Hospital, New Delhi.
Meanwhile, the recovery of Pawan Kumar Ruia, followed by his interrogation and further proceedings is desired by all. The time-lapse in the crime committed and its penalty is anxiety-inducing for the victims, as it places the victims in the midst of disbelief.
Justice shall be served.
Pawan Kumar Ruia
Born in 1958, Pawan Kumar Ruia is a graduate of St. Xavier’s College in Kolkata and the University of Calcutta. He also attained a degree in LL.B. and CA, after which he started his career as a Chartered Accountant and led to the foundation of Ruia Group (Ruia Group) in 1993. He was recognized as an industrialist with high potential, and this made him a leading tycoon.
However, the vicissitude of fortune, which emerged out of Karma led to massive slander. The slander could not be justified, but justice is yet awaited.
Get Justice Suspicious
Pawan Kumar Ruia led to severe losses and fraud. Several times the court asserted that there is something suspicious in the manner of an industrialist. Numerous leaders spotted the bugs. Yet, none lead to an apt penalty.
The delay in investigation and penalty has no justification in any world. If the accused is not a culprit he shall not be liable to the hatred and if not, he shall not be rightful of the leniency.
The timespan, from 2003 to 2023 was a blink of an eye to everyone, except the victims of Pawan Kumar Ruia. It’s hard to be patient when justice is not being served. However, the bustle in the path of law and order is accepted and respected by all.
The sole desire of eternity is to hail justice. The believers have been waiting for the truth to be unveiled and they will keep on doing the same, as they have faith in the governance.
Cases like Pawan Kumar Ruia are trifling evidence of the same. Hence, truth shall prevail, and justice should be hailed.