Draft of Query letter to Institute of Chartered accountants of India

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Inquiry on Auditors of GTB and auditor Hemant Kashiparekh of ahmedabad in relation to banking frauds in GTB Bank
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From:
Pankaj S Mody
2nd Floor , Janmangal Apartment
40 BMM Society , Paldi ,
Ahmedabad 380 006
Email id : psmody@yahoo.com

September 6,2004

To

The President of
Institute of Chartered Accountants of India
New Delhi

Subject: Auditors of Global Trust Bank

1. This is in reference to GTB closing down on account of grave liquidity problems. I understand that the Institute of Chartered accountants is looking into the audit done by the auditors at the instance of RBI . I would appreciate you grill the auditors of GTB in view of my links in para 2.
2. I am enclosing letter addressed to the vigilance department of GTB on 24-7-1999 and copy of same is enclosed in form of a link as under:-
a. http://www.gtbcore.blogspot.com

3. The various letters addressed to GTB at different times can be accessed by clicking various dates on the archives to the above weblog.
4. In this connection , I am annexing letter addressed to the auditor of Rupmanglam Investment Private Ltd and Flovin Plastics Private Ltd on 29-7-1999. The name of the auditor is Mr. Hemant Kashiparekh heading Kashiparekh and Associates. He did not reply the letter because of his guilty conscience.
5. Pursuant to the above letter I had written to the Institute of Chartered Accountants of India , Delhi on 20-9-1999 and the copy marked to several committee members of the Instittute. The letter did not get noticed by the Institiute for the reasons unknown to me. This letter was written keeping in view the banking fraud involving Global Trust Bank.
6. Unfortunately, my whistle-blowing a banking fraud, a criminal defamation case has been filed by Core Health Care who has swindled the financial institutions to the tune of Rs 750 crores and an article of this company was published by Indian Express on 7-12-2002 under the heading of Great Bank Robbery. In order to veil banking fraud , I was subjected to five day police remand where by I can be either silenced or my concurrence taken in the back dates so that the banking fraud does not get exposed. This police remand was done in connivance with tacit help of the auditor Mr. Hemant Kashiparekh along with the others.
7. Now that GTB bubble has burst, in national interest as well as interest of the public at large that the Institute of Chartered Accountants of India actively pursues the matter with the auditor Mr. H. Kashiparekh forthwith without extending any favour and mercy to him by subjecting him to gruelling test so as to teach lesson to him and also other chartered accountants in the country. It has become a fact that the Institute follows a very lax attitude and the Institute has lost its efficacy and purposely drags the issues for years so that person ultimately gives up fight.
8. In light of current developments in the country , I am drawing your attention with a view that you expose the auditor Mr. Kashiparekh , the management of Global Trust Bank and take measures to protect my interest in these companies as well as take criminal action on the auditor Mr. Hemant Kashiparekh for suppressing material facts as he and others made me pass through police remand and my family go through agony. This would ultimately serve as a lesson for other chartered accountants that they refrain from such tactics otherwise they would face stern action from the Institute.
9. At the same time , you through your auditors take firm action on the GTB management and compel them to divulge all truth in the matter failing which you take initiative to expose the auditor and GTB management publicly so that the image of the Institute of Chartered Accountants which has been tarnished gets restored and the people of India perceive that they can rely on Institute of Chartered Accountants.
10. I look forward to the official detailed findings of the Institute without offering any excuses for avoiding responsibility and mark a copy to media so that they can also know how effective you are in immediate follow-up action. It is needless to state that you will not blindly accept evasive reply of Mr. Kashiparekh but you shall ask him to adduce all documentary evidences in support of Mr. Jalundhwala in case he firmly believes that Mr Jatin Jalundhwala has all necessary authority and control to create charge on the immoveable property for Rs 12.5 crores on behalf of Rupmanglam and Flovin while he is compelled to furnish detailed reply to my letter addressed to him on 6-8-2002. His fax number is already appearing on the letter addressed to him.
11. Kindly look into the conduct of Mr. Saurabh Soparkar a chartered accountant (in the past) and at present High court advocate practicing in Gujarat High court . The necessary link is furnished herewith
http://www.barcoun.blogspot.com
I hope that the institute starts exposing scoundrel like mr. Saurabh Soparkar such so that the banks and the financial institutions do not get looted by his crooked means of protecting great bank robbers in the high court. I hope that the institute stops him delivering seminars in the institute till he gives satisfactory explanation. Coward and timid Mr. Soparkar has not been able to furnish any reply from Mr. Jatin Jalundhwala in form of written affidavit. i hope that he is also put to gruelling test so that such persons are punished heavily as he has failed in his duty to expose banking fraud in relation to GTB earlier.

12. I sincerely hope that the Institute maintain transparent and compassionate approach to the citizens of the country and not take a typical bureaucratic stand. The present letter is being marked to media so that they can also watch your performance too. I shall be passing on the information to various Member of Parliaments so that they can look into the conduct of Mr. Hemant Kashiparekh and Mr. Saurabh Soparkar in relation to GTB.

Thanking you.
Yours sincerely,

Pankaj S Mody

Annexures: Letter addressed to Hemant Kashiparekh on 29-7-99.
Letter addressed to the Institute of CHARTERED
ACCOUNTANTS OF INDIA ON 20-9-1999.




ANNEXURE A:Letter to Mr. H. Kashiparekh on 29-7-1999

PANKAJ S MODY

DIRECTOR AND SHAREHOLDER OF RUPMANGLAM INVESTMENT PVT LTD

JULY 29,1999



BY SPEED POST AD

PRIVATE AND CONFIDENTIAL


KASHIPAREKH AND ASSOCIATES,
AKSHAY APARTMENTS
Old High Court Lane
AHMEDABAD 380 009
Phone –079-26586770, fax 079- 26585770


Sir,


I am shareholder and director of Rupmanglam Investment Pvt Ltd.

Your firm is auditor of Rupmanglam Investment Pvt Ltd.

I would like to draw your attention that Mr. Jatin Jalundhwala jas registered charge on immoveable property of Rupmanglam Investment Pvt Ltd in favour of Global Trust Bank for granting term loan of Rs 12.5 crore loan to Core Health care ltd , a loss making company without having necessary authority and power of the Board of Directors as well as members of the company violating various provisions of company law.

It would not be out of place to mention that DhanyushyaFinancial Pvt Ltd through their advocate Shri Ashok D Shah had served the notice to me dated 12-12-1998 , whereby, I am accepted, confirmed and acknowledged as director of Rupmanglam Investment Pvt Ltd . Besides, Dhanyuhsya Financial Private Ltd has not put forth any claim that Mr. Jatin Jalundhwala is the legal director of Rupmangalm Investment Private Ltd.

In the reply given by my advocate , Shri Killol V Shelat dated 1-2-1999 to Dhanyushya ‘s advocate Shri Ashok D Shah , Dhanyushya Financial Pvt Ltd has not dared to submit reply even though more than half a year has elapsed and has also not refuted to the claim of Shri Pankaj S Mody as director of Rupmanglam Investment Pvt Ltd.

Moreover, Dhanyushya Fiancial Pvt Ltd has not cared to produce necessary evidence called for by me.-e.g. I had called for companya auditor’s report in relation to transfer of shares, if any and whether it is in accordance with the provisions of the company law pertaining to articles of association and memorandum of Rupmanglam Investment Private Ltd and as per the guide lines of Institute of Chartered accountants of India, New Delhi.

For your information, balance sheet pertaining to period 96-97 of Dhanyushya Financial Pvt Ltd does not show acquisition of Rupmanglam Investment Pvt Ltd shares belonging to mody family.

Inspite of Mr. Jati Jalundhwala being aware at the time of Shri Killol V Shelat’s letter dated 1-2-1999 that he was not in a postion tofurnish evidence of ownership of shares owned by Dhanyushya Financial Pvt Ltd , he goes ahead with mortgaging of Rupmanglam Investment Private Ltd which clearly show misrepresentation , concealment and suppression of material facts as well as show his malafide intentions.Mr. Jatin Jalundhwala is instrumental in putting shareholders of Rupmanglam Investment Private Ltd at irretrievable loss violating provisions of company law.

You being the auditor of the company owe responsibility to the members of the company, and initiate necessary action when company assets are being stripped and siphoned to such large extent.

As per Institute guidelines as per company law provisions you are to conduct detailed inquiry immediately in professional manner keeping in view the interest of shareholders of Rupmanglam Investment Private Ltd.

As a auditor of the company, you are to procure detailed evidence (by verifying minute books) , resolutions, notice for transfer of shares , compliance of articles 10 to 17 of articles of association and memorandum) from Mr. Jatin Jalundhwala , who is posing as director of the company and having necessary power of the board of directors and members of Rupmanglam Investment Private Ltd to mortgage property of Rupmanglam Investment Pvt Ltd.

As the amount of fraud involved is ver large, I hope that your firm shall take the matter seriously and report findings.

Thanking you.

Yours sincerely,

Pankaj S Mody

(DIRECTOR and SHAREHOLDER OF
RUPMANGLAM INVESTMENT PVT LTD)


Annexure B: Letter dated 20-9-1999 to the Institute of Chartered Accountants of India

PANKAJ S MODY
CORRESPONDENCE ADDRESS
FLAT NO 4 , 2ND FLOOR
JANMANGAL FLAT
BRAHMAN MITRA MANDAL SOC
JALARAM MANDIR ROAD
AHMEDABAD 380 006

DATED : 20TH September 1999



THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
P B NO 7100, INDRAPRASTHA MARG
NEW DELHI 110 002



DEAR SIR,


KIND ATTENTION: THE DISCIPLINARY COMMITTEE

REFERENCE: MY LETTER DATED 5TH MAY 1999 IN RESPONSE TO YOUR LETTER 26-CA(43/W) 98 DATED 2ND NOVEMBER 1998


Please refer to my complaint letter dated 15th May 1998 to Shri Hemant Kashiparekh and my subsequent letter dated 5th May 1999 to the Institute of Chartered Accountants of India New Delhi.
Even, after a lapse of four months in a serious matter such as income tax, I have not received any reply from the Institute, when the whole is moving in jet age and computer age. Such a careless attitude, on the part of the Institute of Chartered Accountants is deprecating.
Over and above , my complaint to Mr. Hemant Kashiparekh, I have an additional serious complaint against Kashiparekh and Associates (Headed by Shri Hemant Kashiparekh ), which covers detection of fraud which I came to know recently and they are turning a blind eye to the fraud.
PROFESSIONAL DUTIES AND RESPONSIBILITIES:-

a) Kashiparekh and Associates are auditors of Rupmanglam Investment Private Ltd (hence forth referred as RIPL), where I am a shareholder and a director, I am enclosing Xerox copy of balance sheet of RIPL for the year ended on 31-3-1994 depicting signature of Kashiparekh and Associates and my signature as director.
b) I have already signed audited balance sheets pertaining to period subsequent to March 31st 1994 and I need to have Xerox copy of balance sheets subsequent to March 31/3/94 –i.e. for the period ending 31/3/1995 , 31/3/96 , 31/3/97, 31/3/98 , 31/3/99 and in his reply dated August 27 1998, , he has made tacit confession that kashiparekh and Associates are still auditors of RIPL. This is because , he has specifically not denied the facts.
c) Shri Kashiparekh has suggested in his letter in August 1998 that I need to approach the Board of Directors of RIPL for information on RIPL which he is supposed to have (since he is aware that other directors are not going to extend cooperation and that would meet the needs of reply to the Institute and thereby escape the exposure to the Institute). There is no justification for him on his part, not to part information of the company such as balance sheet of the company, valuation of shares as long as I am shareholder and director of the company.
d) It is obligatory on the part of Kashiparekh and Associates and all concerned CA’s of Kashiparekh and Associates to furnish Xerox copy of balance sheets till it is proved contrary by Kahiparekh And Associates , that I am neither a director nor a shareholder by verifying the minute book records o the company as it is my right as director and shareholder of RIPL to ask for Balance sheet of the company.
BRIEF DESCRIPTION OF FRAUD:
v Only sometime back , I learnt that one Mr. Jatin Jalundhwala posing as director of RIPL has fraudulently mortgaged propery of RIPL and has obtained Rs 12.5 crores for successive loss making and highly indebted public ltd company (incidently , Mr. Jatin Jalundhwala is company secretary of this public limited company) without having authority of board of directors and shareholders of RIPL . The mortgage of property has taken subsequent to my letter to Mr. Hemant Kashiparekh and there is reason to believe that Mr. Hemant Kashiparekh has parted the information complaint against him to others which led to mortgaging of the propery and thereby stripping the assets of the company.
v Further , in my letter addressed by my advocate Shri Killol V Shelat dated 1-2-1999 to Dhanyushya Financial Pvt Ltd (where Mr. Jatin Jalundhwala is director ), my advocate Shri Killol v shelat has called for auditor certificate for ownership of shares by statutory records such as minute book in particular of RIPL.
v You will find it very interesting to know that Dhanyushya Financial Pvt Ltd has not cared to comply with the terms of notice quoted above for over six months for the reasons best known to them. I have already written a complaint letter to vigilance department of the concerned bank in the recent past and I understand that the bank has also started serious probe in the matter and I understand that startling results will come out in near future in which big heads will have to face the music for the legal acts and omissions deliberately done by them to extract huge loan of Rs 12.5 crores by pledging the property of the company not belonging to the mortgagor.
ROLE OF AUDITOR IN CASE OF DETECTION OF FRAUD:-
v Kashiparekh and Associates being the auditor and WATCH DOG of the company anf its shareholders i.e. RIPL , he needs to substantiate by inspecting the various records such as minute book of meeting of directors and shareholders – so as to how power and authority as been acquired by Mr. Jatin Jalundhwala to mortgage the property.
v The auditor is bound to provide complete evidence and cannot give any excuse not to supply complete evidence and cannot give any excuse not to furnish particulars to me , information as director and shareholder of the company. Any attempt by Kashiparekh and Associates, not to provide information and convey that, I should approach Board of Directors means that , he wants to evade duties and to shrug off the responsibility cast on him by the statute and create hindrance and thereby he tries to connive with the wrong –doers.
v Kashiparekh and Associates as well as Mr. Hemant Kashiparekh need to be advised that he should refrain from playing foul behind my back (taking other directors of the company who have abruptly turned uncooperative on account of undue pressure by Shri Hemant Kashiparekh ) to suit to his whims and his requirements. He is legally appointed auditor of the company and not the owner of the company and he is bound by his professional duties and responsibilities failing which, the Institute of Chartered Accoutants of India shall be duty bound to take appropriate action against Kashiparekh and associates, otherewise, the image of the Institute of Chartered Accountants of India may get tarnished.
v In view of the above mentioned facts and circumstances, it is requested that Institute intervenes and exercises your good offices and direct Shri Hemant Kashiparekh to disclose and intimate to me complete information called by me with full supporting evidence so as to the circumstances in which Mr. Jatin Jalundhwala has acquired power to mortgage the property belonging to some one else. It will not be too much, if I ask your institut to bring to the notice of Shri Hemant Kashiparekh who is member of 7our association that failure to comply with the above mentioned particulars and as well as earlier request to supply copies of certain documents and information will result in such legal actions against Shri Hemant Kashiparekh at their cost and consequences .
v Mr. Hemant Kashiparekh needs to realise that he is not the owner of the company but he is the chartered accountant appointed by the company with the hope of straightforward and transparent approach towards the directors vis –a vis the interest of the company.

Looking to the seriousness and urgency of the problem, it is imperative to call for above information from Kashiparekh and Associates immediately so that I can prevent the asset of the company being stripped.
Please acknowledge receipt of this letter and take prompt follow-up action in the matter.



Yours truly,


Pankaj S Mody



Enclosure:- Extract of balance sheet of RIPL for the ending on 31-31-94 bearing signature. as director.

Address of auditor Kashiparekh and Associates,

Akhshay apartment , Old High court lane
Ahmedabad 380 009
Phone –079-26586770, fax 079- 26585770

Copy marked to S P Chajed , G Sitharaman, Amarjit Chopra, Ashok kumar Chandak

























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Draft of Query letter to M/s Shah and Shah Associates-audtior of Dhanyshya Financial

DRAFT OF QUERY Letter to Shah and Shah Associates,

501 ANIKET BUILDING

NEAR MUNCIPAL MARKET

NAVRANGPURA , AHMEDABAD




Sir,


Sub: Collecting information on creation of charge done by Dhanysuhya and others through GTB to give finance to Core Health care amounting to Rs 12.5 crores.

You are auditor of Dhanyushya Financial Private Ltd as well as Core Health care Ltd ( a public limited company) and Mr. Pankaj S Mody has written a letter addressed to you specifically on April 17.2002 .

Dhanyushya Financial has claimed ownership of shares belonging to Pankaj Mody and his family pertaining to Rupmanglam Investment Pvt Ltd and Flovin Plastics Pvt Ltd during the proceedings of City Civil suit 5827/2001 but has failed to produce the audited balance sheet of Dhanyushya Financial Pvt Ltd showing the ownership of shares so as to claim subsidiary of Dhanyushya.

Kindly furnish following details:-

1. You are specifically called upon to furnish a copy of documentary evidence including a notarised copy of the audited balance sheet of Dhanyushya which shows that Dhanyushya is legal of owner of all shares of Rupmanglam and Flovin belonging to all mody family members.

2. In addition to above , you shall furnish notarised copy of minute book record showing transition of power from from mody family to Dhanysuhya / Mr. Jalundhwala . Incidently, Dhanyushya as well as Jaluundhwala , Core Health care and GTB have failed to furnish a copy of these minute book records in the city civil court.

3. In case you have valid reasons that Rupmanglam and Flovin do not happen to be the subsidiary of Dhanyushya , then kindly furnish your notarised hand written affidavit made before the court forthwith.

4. In case , you have reason to believe that Dhanyushya, Jatin Jalundhwala , Core health care and GTB along with Mr. Saurabh Soparkar and Mr. Hemant Kashiparekh has suppressed vital material facts , please do let us know whether you have taken any legal steps against all of them or not. In case , you have not taken such steps then , by this letter you shall immediately lodge a complaint against Dhanyushya , Jatin Jalundhwala , GTB , Saurabh Soparkar and Mr. Hemant Kashiparekh and Swati Soparkar for suppression of material facts in collusion with one another and thereby create charge on immoveable property owned by Rupmanglam and Flovin through GTB.

5. In case you have reason to believe that this your client and Jaludnhwala has committed banking fraud then do let us know what is wrong .

6. In case you remain silent to this letter, then you are a part of your tacit approval and you are part of conspiracy to help your client to illegally grab title of immoveable property owned by Rupmanglan and Flovin with your tacit support and thereby create illegal charge on the property.

7. In case, Dhanyushya and Jalundhwala has claimed ownership of shares of Rupmangalm ad Flvoin and on such basis they have initiated steps to amalgamate these companies with Span Medicals , then you are bound to notify to the various authorities including judiciary and also take appropriate legal action.

8. You as auditor of Core Health care are called upon to throw light on the issues not clarified by Mr. Sushil Handa of Core Health care in view of notice served by Mr. Pankaj Mody to Mr. Sushil Handa where he has remained silent to paragraphs 3,4 5,7 and 9 and his advocate A D Shah has stated that my client will deal with the same at the appropriate time. A copy of the notice dated 12-01-2000 served to Mr. Sushil Handa of Core Health Care is available on the internet link http://www.corehealthcare.blogspot.com. You being accountable to the share holder of Core Health care , you are called upon to furnish your observations as auditor forthwith.

9. In case , you have given any auditor certificate to GTB kindly furnish a copy of same to us as to what are your comments.


Your reply forthwith would be appreciated as your silence and/or evasive reply is likely to go against you because as a watchdog you are bound to expose such GTB related scandals and frauds. As a auditor of Core Health care which is a public limited company, it is your prime responsibility to the public as a auditor especially when Core health care has been alleged to siphon off large funds as per the of Great Bank robbery appearing on the above site. Kindly give your observations.

Yours sincerely,

===========================

annexure: Copy of earlier letter dated 17-04-2002

Pankaj S Mody
C/o Suresh S Mody
Janmangal Flats
40 BMM Society
Ahmedabad 380 006

April 17 ,2002


To

M/s Shah and Shah Associates
ANIKET, C.G Road
Ahmedabad


Sir,


At the outset, I request you to please excuse me for addressing this letter to you. However, you will please appreciate that circumstances have forced me to address this letter to you with the hope that you will extend your kind and constructive cooperation to me.

I understand that you are auditor of Dhanyushya Financial Pvt Ltd where Mr. Jatin Jalundhwala happens to be one of the directors. In case, you are not aware, it may be necessary for you to learn the following facts.

v Mr. Jalundhwala has failed to produce ownership documents to the Court commissioner pertaining to Rupmanglam Investment Pvt Ltd, inspite of written assurance to the court commissioner.
v Dhanyushya Financial Pvt Ltd had approached Gujarat High court where Mr. Saurabh Soparkar appeared before the Honourable judge so that acts of directors and others are not brought to light which confirms that they lack confidence to establish ownership issue and their illegal acts.
v Both Jalundhwala and auditors of Rupmanglam and Flovin that is H. Kashiparekh are in collusion with each other and they have not given correct information to you when the transfer deeds and sharecertificates were made available to Dhanysuhya
v You are to look into various notices given by advocate Ashok D Shah to me in the past and the reply given by my advocate Shri K V Shelat to draw conclusions.

In view of above and it also concerns you as auditor , you may kindly prevail upon them to tell the truth to you about legal ownership of Rupmanglam and Flovin shares, etc and their hesitancy to give true picture to the court commissioner on time and you shall satisfy yourself minutely and thoroughly without any favour about ownership for the reasons you understand very well.

It is irony of the fate, that my chartered accountant and auditor, though duty bound are avoiding to cooperate with me to enable me to secure justice in the court of law. You will appreciate that they are refraining from discharging their legal duties towards me-client,for obvious reasons. It is under these circumstances that I am making special appeal request to your goodself to extend whole hearted cooperation in the matter.It would not be out of place mention here that, I have already started taking legal action against Indian –Andersons for their professional negligence and professional misconduct.

A line in reply you will oblige.

Thanking you.
Yours faithfully,

Pankaj Mody



CC:- To Shri Hemant Kashiparekh, for information. He is requested to still think of
Extending positive cooperation to the undersigned –to avoid any future embarrassing situations.

Draft of Query Letter to Mr. Hemant Kashiparekh auditor of Rupmanglam and Flovin

Draft of letter addressed to Hemant Kashiparekh

Hemant Kashiparekh
Akshay Apartment
Old High court Lane
Ashram road
Ahmedabad
Telephone
Fax 079-26585770,

079-26586770

Subject : Creation of charge by GTB on immoveable property owned by Rupmanglam and Flovin Plastics Pvt Ltd.



1. We are conducting a reports in relation to GTB which had closed shutters and you as auditor of Rupmanglam Investment Private Ltd and Flovin Plastics Pvt Ltd would have all the necessary information available with you in this regard as Mr. Jatin Jalundhwala has created charge on the immoveable property of (called Rupam Bunglow near Doctor House , parimal crossing) Rupmanglam Investment Pvt Ltd and Flovin Plastics Pvt ltd and the said charge was created first in 1998 and then renewed in March 1999 for Rs 12.5crores.
2. Both GTB as well as Jatin Jalundhwala and Dhanyushya financial has not adduced documentary evidence in form of your certificate as auditor of these two companies. In view of the above situation , kindly furnish following information forthwith as under:-
v Do you certify that Mr. Jatin Jalundhwala and Mr. Ameet Desai are sole legal directors of these two companies at the time of creation of charge in 1998.
v If so , how you have ascertained that they are legal directors. Furnish certified copy of minute book record to this effect from 1995 onwards.
v Kindly furnish detailed information as to who are the legal share holders of shares belonging to mody family members and all the necessary minutes passed in this regard and in case Dhanysuhya is the legal share holder of Rupmanglam and Flovin Plastics Pvt Ltd , kindly adduce evidence that the stamped share transfer deeds has been presented to Rupmanglam and Flovin Plastics Pvt Ltd within validity period of two months from the date on the transfer deeds and the same is correctly shown in the audited balance sheet of Dhanyushya Financial Pvt Ltd. We understand that the shares have not been shown till 1997 by Dhanyushya while the income tax department has raised such demand for the year 1996 from some of the mody family members.
v Please also adduce complete details whether such share transfer was as per the provisions of articles of association and memorandum of the companies pertaining to Rupmanglam and Flovin.
v We also have a copy of your letter addressed to Mr. Saurabh Soparkar for consulting him on taxation matter as regards to Parbhulal Bhikhabhai Shah family. Do you confirm that you have written such letter and met Mr. Soparkar along with Mody family members for tax consultation as well as MOU drafting by Mr. Soparkar ?
v The copies of Mous furnished by Dhanyushya as well as Jatin Jalundhwala to the city civil court in suit 5827/2001 has shown presence of you as well as Mr. Saurabh Soparkar as escrow persons and both of you in possession of various documents and as long as both of you do not give your written consent they cannot be legal owners of these two companies.
v Have you entered into any correspondence with GTB, Jatin Jalundhwala , Saurabh Soparkar and whether you have received any correspondence from them and whether you have replied to them ? Kindly furnish your reply.
v Please let us know whether you performed role as an escrow person or not. If you and/or Mr Soparkar has not performed role as an escrow person , then kindly furnish a copy of detailed affidavit from Mr. Jatin jalundhwala in this regard as to how he has acquired legal ownership of the companies when both of you have not played role of escrow persons.
v We understand that Span Medicals is audited by you and as auditor of Span Medicals Ltd , whether you have approved amalgamation of Rupmanglam and Flovin Plastics Private Ltd carried out by Mrs. Soparkar. If so, please give a reply in this regard along with copy of the audited balance sheet as it happens to be a public limited company.


3. Mr. Mody has sent several letters (29-7-1999, 22-3-2002,1-4-2002,6-8-2002 ,etc) addressed to you. Kindly furnish a copy of detailed reply to his letters and notices in form of affidavit signed before a banker certifying as your true signature. You must be aware that Mr. Pankaj Mody has filed complaint against Mr. Soparkar and you can see the text by surfing on net by going to link http://www.barcoun.blogspot.com

4. It is imperative that you extend whole hearted support so that we can report banking frauds in relation to GTB so as to prevent such frauds happening again. I look forward to your reply forthwith. In case you remain silent inspite of your duty to speak in public interest in this regard then we may draw inference that you are tacitly associated in banking fraud in connection with GTB.

Thanking You.


Yours faithfully,

Link to some of the letters addressed to you

http://kashiparekh.blogspot.com/

Draft of Query letter to Bar Council of Gujarat

DRAFT OF LETTER TO BAR COUNCIL OF GUJARAT
OPPOSITE GUJARAT HIGH COURT
SOLA-GANDHINAGAR HIGHWAY
AHMEDABAD
PHONE:- 27434073, 27433460
FAX:-91-79- 027433964

Reference link http://www.barcoun.blogspot.com

SIR,



This is in reference to the complaint filed by Mr. Pankaj Mody against practicing high court advocate Mr. Saurabh Soparkar to Bar Council of Gujarat in September 2002 while the copy of complaint despatched by Bar Council of Gujarat to Mr. Saurabh Soparkar in July 2003 that is after nine months of initial complaint and immediately after the adverse orders passed in appeal from order 176/2003 in June 2003. The complaint was registered as complaint no 38/2002 by you.

You must be aware that Global Trust Bank has collapsed recently and its management being shielded for obvious reasons by Reserve Bank of India by announcing seheme of merger with Oriental Bank of Commerce spontaneously. In this connection , we would quickly like to draw your attention to the following information and solicit your extensive and wholehearted support in exposing the management of GTB which has collapsed recently and exposing the management of Core Health care where the financial institutions have lost over Rs 750 crores .

1. Core Health care has robbed the financial institutions to the tune of Rs 750 crores while the shareholders have incurred heavy loss on account of market price plummeting from as high as 500 to less than Rs 10 /share while Mr. Sushil Handa continues to maintain a lavish personal life style.

2. Saurabh Soparkar and Amar Bhatt both have been representing Core Health care interest and appearing in the courts from time to time.

3. All of you would be aware by now that on behalf of Core Health care no one appeared in CRA 25 and 26/2002 including Mr. Saurabh Soparkar and Amar Bhattt who have acted as their advocates and appeared in their matters in Gujarat High Court .

4. All of you would be aware by now that in the appeal from order 176/2003 in 2003 , Mr. Mody has appeared as party in person demonstrating his supreme conviction in the matter and inspite of Mr. Soparkar having acknowledged receipt of Mr. Mody’s of allegations letter dated 10-5-2002 and 6-8-2002 , Mr. Soparkar has not dared to appear in the appeal from order 176/2003 even when he appeared as counsel in CRA25 and CRA26/2002 clearly demonstrates that he is timid and has guilty conscience .

5. All of you would be aware that no one had appeared on behalf of Global Trust Bank , Core Health care and Jatin Jalundhwala in CRA 25 and 26/2002 as well as in appeal from order 176/2003.

6. All of you are aware by this time, that Mr. Saurabh Soparkar has deliberately evaded to furnish stamped affidavit of Mr. Jatin Jalundhwala , Mr. Hemant Kashiparekh as referred in the original complaint.

7. All of you are aware that Mr. Hemant Kashiparekh had sought Mr. Soparkar’s appointment inspite of his denial.

8. All of you are aware that Mr. Saurabh Soparkar has failed to take any legal action against Mr. Mody even when he has financial resources , contacts and legal background. to defend his integrity and strength of character.

9. All of you are aware that even when no one had appeared on behalf of GTB, Core Health care, Jatin Jalundhwala , brief , non-speaking adverse orders have been passed in the appeal from order 176/2003.

10. All of you are aware that inspite of Mr. Soparkar’s name referred as an escrow person , he has not taken initiative to come forward and tell the judiciary that his name has been unnecessarily dragged in the banking fraud connected with GTB and it is necessary that indepth investigation is carried out by recording statement of Amar Bhatt , Dhanyushya Financial and Jatin Jalundhwala as well as GTB as to how they claim ownership of Rupmanglam Investment property and company to create charge on the immoveable property and taking legal action on GTB for creating an illegal charge on the assets.

In view of above and in the interest of social responsibility to protect the citizens of the society as well as the members of large lawyer community and their clients it would be prudent that the committee members of Bar Council of Gujarat takes initiative to expose GTB and employees of Core Health care and failure to do so would mean that the Bar Council of Gujarat does not give a damn for the society but wants to protect and shield acts of fraud of Mr. Soparkar and this would tarnish the image of Bar Council of Gujarat and the laywers in the eyes of public.

Your immediate views would be appreciated so as to ascertain transparency and openness as well as receptivity as well as strong urge and commitment to protect the interest of common public.

INITIAL EXPLANATION TO BE SOUGHT FROM GTB

To call for following information from Global Trust Bank through Oriental Bank of Commerce

correspondence letter REFERENCE internet LINK:- http://www.gtbcore.blogspot.com

APPRAISAL AND SANCTION STAGE

1. GTB has not carried out any investigation at the time of appraisal by obtaining following documents.As a part of prudent and conservative practice while giving amount in crores of rupees , all the banks are would follow such practice because depositors have reposed trust in them. The fact that they have not carried out shows serious lapses on their part as well as the auditors of GTB inspecting all the necessary records.

GTB management would have made independent check with Registar of Companies at the time of appraisal while processing loan application for Rupmanglam Investment Private Ltd , Flovin Plastics Private Ltd and Dhanysuhaya Financial Pvt Ltd and would have obtained certified copies from Registar of Companies showing particulars of all audited balance sheets (meaning till 31-3-1998) filed preceding the date of application of loan.They would have shown documentary evidence in form of receipt of Registar of Companies evidencing that they have carried out such inspection. They would have also obtained certified copies of audited balance sheet from the Registar of Companies at the time of processing of appraisal. THIS IS NOT DONE. (same can be verified once again).

GTB would have also addressed letter to the previous bankers and obtained complete details as to who are operating the account. (same can be verified once again).

GTB would have also addressed letter to the auditor of Rupmanglam and Flovin Plastics Private Ltd or asked the applicant to obtain from the auditors and obtained their report as to who who are the directors and as to who are the shareholders of such private limited companies. Such procedure has been was in practice even by Gujarat State Financial Corporation for an amount which was less than say Rs 20 lakhs.

GTB would have also carried out inspection of minute book record of directors and shareholders directly or would have asked the applicant to furnish certified copies of such records from the auditors of the companies involved.

GTB would have also inspected and obtained certified copies of audited balance sheet pertaining to Dhanyushya Financial Pvt Ltd till March 31-3-1998 and the said balance sheet would have reflected particulars of its so called subsidiary companies called Rupmanglam Investment Pvt Ltd and Flovin Plastics Private Ltd along with the audited balance sheets of these so called subsidiaries annexed with the audited balance sheet of Dhanysuhya Financial Pvt Ltd. IN FACT NO SUCH AUDITED BALANCE SHEET OF DHANYSUHYA FINANCIAL HAS BEEN FILED WITH REGISTAR OF COMPANIES.

GTB would have ascertained from the audited balance sheet of Core Health care Ltd of 1997 that Core Health care had defaulted a large loan (American Express who hade filed winding up petition) and therefore would have been skeptical to extend such high term loan before carrying out a detailed and exhaustive inquiry.

GTB would have obtained history of companies called Rupmanglam and Flovin Plastics Private Ltd right from the inception of the companies especially when they would have found out that Jatin Jalundhwala and Ameet Desai were not original directors of these companies.

The fact that GTB has not carried out such detailed investigation is evident from the copy of title deeds registar maintained by them showing list of documents attached therein . Such copy of title deeds registar does not reflect certified copies of Form 32 showing appointment of Jatin Jalundhwala and Ameet Desai as directors of Rupmanglam Investment Private Ltd and Flovin Plastics Pvt Ltd nor does it reflect forms showing alleged resignation of mody family directors.

GTB carried out partial inquiry only after they received a Private and confidentai letter from Pankaj Mody on 24-7-1999 as to when Mr. Jatin Jalundhwala and Mr. Ameet Desai had made appearance as additional directors by asking their solicitors WADIA GHANDY to carry out such inspection report at Registar of Companies and obtain certified copies from the Registar of Companies. Wadia Ghandy inspite of being solicitors have played dumb as to how Jatin Jalundhwala and Ameet Desai played their role as regular directors in 1998 especially when the role of additional directors gets over at the time of next annual general meeting as per the provisions of Companies Act and articles of association/memorandum of concerned companies. Mr. Jalundhwala and Mr. Ameet Desai cannot on their own to have themselves reappointed as additional directors or directors unless they have been formally invited by mody family members for reappointnment by mody family directors and mody family shareholders. BOTH JATIN JALUNDHWALA AND AMEET DESAI HAVE KEPT GTB IN DARK AND HAVE FOOLED GTB BANK ON THIS ISSUE. BESIDES GTB AS A BANKER CANNOT ABSOLVE THEMSELVES THAT THEY DID NOT KNOW ALL SUCH PRIMAEFACIE DETAILS OF COMPANIES ACT WHILE PROCESSING THE APPLICATION FOR TERM LOAN.

Assuming that GTB did not ascertain such facts at the time of appraisal ,GTB would have verifed minutely even at the time of RECEIPT OF Mr. Mody's letter on 24-7-1999 and they would have restrained themsselves from disclosing the content of SUCH private and confidential letter to the party which itself shows that they do not have any concern of safety of a WHISTLEBLOWER OF BANKING FRAUD.

Copy of title deeds registar maintained by GTB and handed over to the court commissioner on 10-1-2002 does not reflect documentary evidence of alleged resignation of mody family directors.

Dhanyushya has furnishsed sale deed document only for 19% share in the property while for the balance 81% property , copy of memoandum of entry furnished by GTB does not reflect deposition of original sale deed documents of Parbhulal Bhikhabbhai Shah being handed over by Rupmanglam and Flvoin to GTB for the purpose of creation of true charge on the immoveable property.

GTB very well knew from the record of right that there was stay of revenue department of Government of Gujarat at the time of creation of charge in 1998 and the annexures submitted at the time of renewal on March 1 ,1999 did not reflect that such stay was lifted and thereby priamefacie conclusion can be drawn that such permission was obtained as an afterthought by Dhanyushya.

GTB and Dhanysuhaya has not produced any sale deed document which shows that constructed portion exclusively belonging to Rupmanglam has been shown to be coowned by Dhanyushya and Flovin and nor have they been able to show relevant 37I permission from the income tax authorities. It is strange that the investigation department of income tax has not initiated legal steps against Jatin Jalundhwala inspite of such knowledge with them.

Inspite of the letter addressed to GTB on 24-7-1999 ,

-(i) GTB has failed to explain as to how Jatin Jalundhwala had power to create charge when Dhanyushya through their notice had confirmed presence of Mody family directors,

-(ii) GTB has failed to obtain auditors report through Dhanyushya that they are sole legal shareholders to pass necessary resolution for creation of charge as required by the Companies act as well as articles of association and memorandum

-(iii) GTB has failed to obtain auditors confirmation stating that Jatin Jalundhwala and Ameet Desai are sole directors of Rupmanglam and Flovin Plastics Pvt Ltd

-(iv) GTB and Dhanyushya has failed to furnish written affidavit from the ESCROW persons that they are holding legal ownership of the companies as well as legal title of ownership of the companies.

-(v) How can GTB register charge when they know fully well that Jalundhwala has accepted that he did not have minute book records which are necessary to pass necessary resolutions for creation of charge -(vi) GTB knew very well that Jalundhwala cannot accept alleged resignation of Mody family directors as long as he does not furnish documentary evidence which shows that he continues as director

Message 1 Draft of Background information on GTB

THE DOG THAT DID NOT BARK

Inspector Gregory:"Is there any other point to which you would wish to draw my attention?"
Holmes: "To the curious incident of the dog in the night-time."
"The dog did nothing in the nighttime"
"That was the curious incident," remarked Sherlock Holmes.
From "The Adventure of Silver Blaze" by Arthur Conan Doyle

1. In order to expose banking fraud, a whistle was blown by Mr. Mody by writing a private and confidential letter on 24-7-1999 to the vigilance department of Global Trust Bank requesting them to examine and verify minutely as regards to charge created by Mr. Jatin Jalundhwala ( Employee of Core Health Care Ltd ) posing as director of Rupmanglam Investment Pvt Ltd in August 1998 for Rs 11.00 crores and subsequently renewed to Rs12.5crores in March 1999 and whether Jalundhwala had necessary power and authority of legal board of directors as well as shareholders of Rupmanglam Investment Pvt Ltd. A Letter was written to Mr. Hemant Kashiparekh , auditor of Rupmanglam on 29-7-1999 ( He did not respond because of his guilty conscience).

2. As per the contents of this letter to the Bank , the bank ought to have minutely examined on its own as well as experts on company law

a) the contents of the notice given by advocate Shri Ashok D Shah on 12-12-98 where mody family members have been accepted ,confirmed and acknowledged as directors of Rupmanglam Investment Pvt Ltd

b) that Dhanyushya has not dared to reply given on 1-2-99 by refuting the claim of Mr. Mody continuing as director of Rupmanglam as well as furnishing detailed auditor certificate from auditors of Rupmanglam and Dhanyushya showing that complete share ownership vests with Dhanyushya and full control of board directors vests with Mr. Jalundhwala and his colleague Mr. Ameet Desai and on account of such full authority and power from legal shareholders and board of directors , they had necessary power to execute charge on the immoveable property of Rupmanglam Investment Pvt Ltd.

3. It was necessary for a private bank to depict a clean, honest and transparent approach. Mr. S.R.Krishnamurthy, Head of Global Trust Bank ought to have exhibited bank’s sincerity and integrity by furnishing to Mr. Mody, detailed findings of vigilance inquiry ( by making all the needed cross checked references as a conservative banker) report in form of detailed report signed by all the persons involved in preparing such report backed by certified copies of connected auditors and reply given by advocate A D Shah pursuant to reply given by advocate K V Shelat on 1-2-99.

4. Instead, Mr. Krishnamurthy gave a brief reply vide letter dated 21-10-1999 stating that Mr. Jalundhwala has necessary authority/power to create charge (but not refuting Mody’s presence as director and control of share ownership) and ended letter by desperately wanting to close the topic. On same day a criminal defamation suit was filed by Core Health care vide 3326/99 in the Metropolitan Court –15 against Mr. Mody and the contents of the case referred that the private and confidential letter addressed to GTB had been passed on to Core Health Care. AS Mr. Mody could not be silenced by this defamation case , Mr. Jalundhwala in a separate complaint managed with police to subject Mr. Mody to a five day police remand in December 1999.

5. The police authorities did not conduct all necessary as well as thorough minute detailed inquiries by making cross checked inquiries with GTB, the auditors of Rupmangalam, Dhanyushya and the advocate Mr. Ashok D Shah in view of contents of various notices by Ashok D Shah and reply given by Mr. Shelat. Instead all actions were taken with ulterior motive of subjecting Mr. Mody succumbind under Police pressure, threat and torture during Police remand.

6. GTB failed to give reply to the notice given by Mr. Mody through his advocate on 21-12-99 where by once again all necessary certificates from the auditors were called.

7. Mr. Mody filed city civil suit 5827/2001 in Bhadra court in December 2001 and obtained temporary injunction on GTB , Dhanyushya , Jalundhwala ,Core Health care along with appointment of Court commissioner to take documents on avaljapti. GTB furnished

(a) copy of charge register being maintained by them and as per the details furnished therein - the charge register did not depict that Mody family members had resigned as directors of Rupmanglam

(b) furnished copy of Mr. Jalundhwala as additional director of Rupmangalam ( which by itself does not confirm that he continued as director of the company on the date of creation of charge ). Mr. Jalundhwala inspite of his written assurance that he will furnish details to the court commissioner , he did not do so - showing that he had guilty consicence. The court commissioner did not pursue the matter for obvious reasons.

8. Dhanyushya filed civil revision appeal in Gujarat High court so as to lift injunction and to avoid court commissioner making further inquiries. GTB could have seized God sent opportunity to demand complete documentation of authority to execute documents and thereby could have forced complete recovery of loan along with interest from them –but they did not appear in the High court at all in civil revision appeal.

9. The Gujarat High Court had given directions to all of them on April 15th 02 that all of them shall furnish all documentary evidence latest by April 26 2002 and the matter would be decided by June 30,2002. Inspite of their noncompliance to furnish detailed documentary evidence by that date, the city civil court court permitted to accept piecemeal ,useless information as late as December 2002 from GTB while lifting the injunction in the original suit 5827/2001 which is still pending in the court.

10. GTB has failed to take drastic action against Dhanyushya , Jalundhwala and Core Health care inspite of Mr. Mody’s letter dated 19-5-04 and document of Lease Pendence filed as referred in his letter on 14-6=04 depicting that the city civil suit 5827/2001 is pending in the city civil court.

11. The fact that Core health care is not remaining present and not producing Mr. Jalundhwala and officers of GTB in the criminal defamation case 3326/99 shows that they do not have necessary conviction against me but a ploy is used by bank and Core Health care to silence Mr. Mody.

12. When Mr. Mody has represented to the Chief Minister of Gujarat that Core Health care are neither appearing nor pursuing the matter in the Metropolitan court in defamation case and Mr. Mody firmly asserts that this group had made false presentation to Police to subject Mr. Mody to remand and therefore it becomes the responsibility of Government of Gujarat through Police and the Metropolitan Court to conduct thorough inquiries on these persons so as to stop such frivolous cases and so also to catch hold of officers of GTB colluding with this group. It becomes more relevant , especially when GTB recently had to close shutters.

13. When various authorities do not want to initiate detailed inquiry by recording the statements before the magistrate in open court , would it not mean that they want to encourage such practices in the state so as to help great bank robbers looting the banks in collusion with Bank officers, connected advocates and auditors ??? Can Chief Minister of Gujarat answer why his administration is not taking initiative to look into the matter promptly inspite of the assurance given by his Principal Secretary Mr. Hasmukh Adhia in his email to Mr. Mody In June 2004??? Does Chief Minsiter realize that Mr. Mody can be harassed and tortured once again ??? Does he realize that on account of his whistle blowing he and his family has undergone harassment from the income tax department ???

14. The President of India in his address has mentioned that even for educated persons , getting justice has become very expensive as well as very complex and there is urgent need to find solutions to this issues. Does the honorable judges of Gujarat High court want to take initiative to conduct necessary inquiry on its own to protect the atrocities that Mr. Mody and his family faced???

15. The contents of the letters to Global Trust Bank are available on www.gtbcore.blogspot.com

16. The time is right to draw lessons from famous Sherlock Holmes story The Sliver Blaze. "The Dog that did not bark" AND THE CITIZENS QUESTION - ALL THOSE DOGS THAT DID NOT BARK WHEN MR MODY BLEW WHISTLE ON GTB AS BACK AS 1999 !!!!!