Milind Patel, formerly of IL&FS and Sanjay Palve, formerly of Yes Bank, are leading revival of REL that is embroiled in several cases with its former promoters. “We are putting all the efforts to revive the company with support of the existing investors,” said REL managing director Milind Patel.
REL said that as part of its revival plan, it has reduced overall borrowings of the group to Rs 5,852 crore from Rs 9,801 crore, as of March 2019. All efforts are being made to rebuild business, mobilise fresh capital, retain good employees and terminate the services of unproductive and tainted employees, the management said.
REL also denied allegations by former MD Sunil Godhwani, who accused Siddharth Singh of Bay Capital and Shyam Maheshwari of SSG capital of attempting to acquire substantial stake in the company by not going for open offer in violation of rules.
Patel and Palve said these allegations are to divert attention from the investigations that are looking at fund diversion to the tune of Rs 3500 crore, allegedly by Mr Godhwani, on behalf of Singh brothers. “Not only was Sunil Godhwani paid hefty compensation from the company, he also abused his power to authorise these fraudulent loans to Singh brothers,” REL said.
It also explained that all the investigations by external lawyers, internal studies and an independent investigation carried out by Sebi into the corporate loan book implicated the erstwhile promoters and management in defrauding the company.
A Sebi report released in March this year directed Religare finance to recall and recover all the monies from the promoter entities.
An email sent to Godhwani did not elicit a response till press time.