Gurugram, Mar 26 (PTI) The Economic Offences Wing of Delhi Police has filed an FIR against Gurugram-based realty firm Experion Developers Private Limited and its related entity Experion Capital Private Limited for fraud, based on a complaint filed by the Enforcement Directorate, according to an official statement issued on Thursday.

The ED complaint sprang from its investigation in a money laundering case against Religare Finvest Limited (RFL).

According to the ED, its investigation found that the former Religare Finvest promoters Malvinder Mohan Singh and Shivinder Mohan Singh siphoned off approximately Rs 2,036 crore from RFL through entities directly or indirectly controlled by them.

The ED found that the Singh brothers diverted Rs 150 crore from RFL, which was used to purchase a 27.86-acre land at Sector 62, Gurugram.

On February 4, 2020, the ED attached the 27.86-acre land, which included a 9.1-acre land parcel belonging to another entity, Dignity Buildcon Private Limited.

During the investigation, the ED noticed that the Experion entities misused provisions of the Insolvency and Bankruptcy Code in the Corporate Insolvency Resolution Process of Dignity Buildcon.

The National Company Law Tribunal's Delhi bench had initiated insolvency proceedings against Dignity Buildcon on April 24, 2019. On the conclusion of these proceedings on May 23, 2023, Experion Developers emerged as the successful resolution applicant.

Meanwhile, Experion Capital acquired a Rs 490 crore loan -- earlier extended by the Standard Chartered Bank to Dignity Buildcon -- for a lesser amount of Rs 160 crore through an agreement dated December 26, 2022, the FIR said.

"By virtue of this, Experion Capital got 49.3 per cent voting rights in the Committee of Creditors, which was earlier held by the Standard Chartered Bank. Subsequently, on January 9, 2023, Experion Developers withdrew its writ petition and the stay on voting ordered by the Delhi High Court on January 18, 2023, was vacated," it said.

"Further, during the insolvency process, Experion Capital increased its voting share in the Committee of Creditors to 60 per cent, by acquiring Rs 58 crore worth of debentures issued by three Blackstone Group entities for a lesser amount of Rs 25 crore," the FIR said.

According to the ED's complaint, in a letter dated January 24, 2023, Experion Capital directed the Alchemist Asset Reconstruction Company to consult it before voting on any resolution plan.

"Most damningly, Sachin Gupta, the authorised representative of Alchemist Asset Reconstruction Company, admitted in his statement ... on August 23, 2024, that Experion Capital compelled the Alchemist Asset Reconstruction Company to vote in favour of Experion Developers' resolution plan," the FIR said.

Both Experion Capital and Experion Developers are wholly owned subsidiaries of Singapore-based AT Capital Group. PTI COR RUK RUK

Insolvency and Bankruptcy Code misuse allegations surface over creditor voting control and resolution process conduct in a fraud FIR. Fraud allegations arose from an FIR filed on the basis of an Enforcement Directorate complaint linked to a money laundering probe. The complaint stated that Experion entities were examined in relation to the insolvency proceedings of Dignity Buildcon Private Limited and were said to have misused the Insolvency and Bankruptcy Code during the Corporate Insolvency Resolution Process. It further alleged acquisition of debt and debentures to increase voting rights in the Committee of Creditors and pressure on the authorised representative of Alchemist Asset Reconstruction Company to vote for a resolution plan.