Presenting Adani Tradeline LLP and Adani Trade Services LLP : who kept pledging their Shares and kept getting loans!!!
Now in 2017, Rajesh Adani ( hereafter referred in Dhaniya Seth in this post ) and Bhabik Shah ( to be referred as Mirchi Seth) opened a "Limited Liability Partnership" called Adani Tradeline LLP with only 1 lakh as investor capital .
Being an LLP, they are only liable to pay this one lakh only. This also means, their shares would not traded like a Limited Company but behave like a private limited company or more aptly "a private partnership firm".
Upto that, it was all legal; But then, this company started taking loans by pledging assets and investors kept pouring loans into it.
Not just 1 loan, but multiple loans .. for 2-3 loans, this company used shares of other Adani group companies' shares.. Rest of them are against LLP's shares. Which stupid investor does that? Wasn't it better to write them a "gift cheque"? Do these "Investors" know what LLP is? Or is IIM, Ahmedabad teaching that "LLP pledged shares are like Gold"? If yes then, they should be renamed to "IIM, Scamedabad" !
I would blame the creditors for doing these as much I would blame the Dhaniya Seth and Mirchi Seth.
This LLP looks like a getaway vehicle for this stock manipulation scam, as even Deed of LLP is attached to loans to creditors.
It seems Dhaniya and Mirchi initially named it "Paisa Kente Rail Infra LLP" and now remodeled it to "Adani Tradeline LLP", who are its lenders? This website doesn't say that detail, but they do look like Government owned Banks or Insurance companies.
Mirchi and Dhaniya's other LLP, Adani Trading Services LLP was also used to Pledge shares and get loans.
Surely, SEBI had seen these prospective frauds bloom right under their eyes. Surely RBI as banker of all banks had a responsibility to inform public and public sector banks that all loans to LLP are risky and accepting "Assets with highly fluctuating value" like shares are of outrageously extreme risk.
Update:
ReplyDeleteAdani Family has converted Adani Tradeline Llp into Adani Tradeline Private Limited, with exact amount on Charges (Outstanding Debt), Same Directors/Partners, same authorised capital of 1 lakh.
Outstanding debt is now, 7214.8 crore.
Hidden gems of Chotu Adani (Rajesh).
But it is still culpable for committing "Banking Fraud" when it was LLP, as are the bankers who signed off on Loan and other documents.
You can't give or take stocks (even most stable ones) as collateral for loans to LLP or LLC, when the loan amount is 7000 times than the insured capital.