The National Company Law Tribunal, New Delhi (NCLT) has passed an interim order against the majority shareholder of the company called Nayati Healthcare & Research NCR Pvt Ltd, which is under the effective control of Niira Radia and her affiliates.
Dr Rajeev Kumar Sharma, who is a leading orthopaedic surgeon in India, has approached the NCLT against the acts of gross mismanagement, siphoning off and fraudulent dealings with the funds of Nayati Healthcare NCR in the hands of majority shareholder and nominee Directors including Niira Radia. Nayati Healthcare NCR has under its purview two hospitals, one being Gurgaon Hospital (under construction) and the other being Vimhans Hospital in New Delhi.
In April 2018, Niira Radia through her Company, Narayani Investment Pvt Ltd, acquired 51% shares in Nayati Healthcare NCR. During that time, Dr Sharma’s shareholding was 49%. The acquisition was announced on newspapers and social media, signaling the entry of Niira Radia’s healthcare venture in NCR. The major asset of the company is Gurgaon Hospital, which was under construction, for which YES Bank disbursed Rs 312.50 crore and further Rs 331.73 crore was invested by Narayani Investment.
By October 2019, YES Bank stopped disbursing any funds. Dr Sharma, through board meetings, email, and verbal communication kept asking for status of completion of Gurgaon Hospital and utilization of funds. Instead, he was threatened with legal action, deprived of his rights as a Director to inspect Company’s books, and denied his salary for work he did as a surgeon for the last 1 year.
Narayani Investment issued multiple Zero Coupon Fully Convertible Debentures (ZFCD) and converted the same for equity shares in Nayati Healthcare NCR. Simultaneously, Radia kept siphoning off these funds. Consequently, Dr Sharma’s shareholding was illegally reduced to 6.3% in the company he founded.
The Two-Judge Bench comprising PSN Prasad and Dr VK Subburaj held that even after a total investment of Rs 644.23 crore into the Company, the Gurgaon Hospital is in a more dilapidated state than it was in 2018 before Radia came into the picture. Instead, this money was siphoned by entities related to Niira Radia, including but not limited to Ahluwalia Construction, Biosurge Devices, Rajesh Industrial Projects Pvt Ltd, Sanyog Enterprises Pvt Ltd, Ruchi Medical Pvt Ltd, and Nayati Medical Pvt Ltd. Majority of siphoning of funds was carried out through Ahluwalia Construction, which is a benami company of Radia, having the same name as Ahluwalia Construction Group. Ahluwalia Construction Group, one of the most reputed names in construction, has no affiliation with this so-called company bearing its name. Further, a trail of Rs 119.15 crore reaching Niira Radia shows the brazen loot carried out by her and her associates. An FIR was registered on 04.11.2020, by the Economic Offences Wing of Delhi Police on the same matter under sections 409, 420, 467, 468, 471 and 120B of the Indian Penal Code, 1860, which is under investigation.
Dr. Sharma has presented the photographs of Gurgaon Hospital to the NCLT, details of bank statements of Nayati Healthcare NCR, Ahluwalia Construction, details of the transactions with fictitious accounts owned by Radia, charts reflecting the siphoning off and diversion of funds as well as fraudulent/fictitious invoices and work orders forming part of the reports submitted to YES Bank to avail loans before NCLT, New Delhi in support of his claims.
He approached NCLT, New Delhi for restoration of his shareholding in Nayati Healthcare NCR and stopping Radia from selling off the assets of Nayati Healthcare NCR to a third party. In effect, after looting company funds and bank loans, Radia is attempting to illegally gain further, alleged Dr. Sharma.
The Court while considering the facts of the matter ordered that the petitioner is entitled for a status quo on shareholding of the Nayati Healthcare and Research NCR Pvt Ltd and granted 4 (four) weeks’ time to all 16 Respondents to file their Replies.
The matter is fixed on April 26 for further hearing.