Former promoters of Alok Industries Ltd, which has now been acquired by Reliance Industries (RIL) -JM Financial ARC in insolvency proceedings, have launched offshore companies, according to Pandora Papers magazine.
Records show that between 2010 and 2014, brothers Ashok Jiwrajka, Dilip Jiwrajka and Surender Jiwrajka established four companies in the British Virgin Islands: Triumphant Victory Holdings Limited; Alok Worldwide Ltd; Alok International Ltd; and Alok Overseas Limited.
Alok Industries, headed by Jiwarjika, was one of 12 companies identified by the Reserve Bank of India as one of the largest defaulting companies in the country. The company owed Rs 29,000 crore to Indian banks.
In 2017 Alok Industries was taken to bankruptcy court and in 2018 the company was acquired by combine harvester RIL-JM Financial ARC for Rs 5,000 crore resulting in an 83% haircut for lenders .
The official spokesperson for Alok Industries, in an email response to The Indian Express, said Surendra Jiwrajka directed the queries the newspaper sent to Alok Industries.
Alok Industries said the Jiwrajka brothers had “nothing to do with Triumphant Victory Holdings”, a joint venture of the company since they are no longer the promoters of Alok. The company said that these offshore companies were incorporated as special purpose vehicles in BVI to facilitate investment in overseas businesses of the Alok Group.
“These companies do not have any assets in their name in India and overseas, except for investments they make in overseas businesses, details of which have been reported in annual reports. ‘Alok from time to time and also reported to relevant statutory authorities anywhere. obligatory. In addition, Alok has invested in these companies through proper banking channels and declared all remittances by filing the required ODI forms. In addition, the APR forms of these companies and the investment disclosure are regularly provided to RBI, ”said the official spokesperson for Alok Industries.
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According to the Pandora Papers, Alok Worldwide was incorporated in July 2013 with the three Jiwrajka brothers as directors and Alok Industries Ltd as sole shareholder.
The main activity of the company was to make long-term strategic investments. Records reveal that in May 2014, Alok Industries took out a $ 50 million loan from the Export Import Bank of India in Mumbai by pledging its stake in Alok Worldwide. However, documents show that Alok Industries defaulted on the repayment of this loan.
Alok Worldwide’s financial records show that the company has been used primarily to borrow from group companies and invest in other group companies. Records show that Triumphant Victory Holdings was established in January 2010 with Dilip and Surendra Jiwrajka as directors and Alok Industries International Ltd, Alok Industries Ltd, Alok Denims (India) Ltd and Alok Knit Exports Pvt Ltd as shareholders.
Of this amount, Alok Industries International, a wholly owned subsidiary of Alok Infrastructure Ltd, held 7.5 lakh of preferred stock at $ 1 each in Triumphant Victory. In June 2016, Alok Industries International repurchased all of its preferred shares in Triumphant Victory at par. However, Alok Industries International, according to its 2021 financial report, owes Triumphant Victory Rs 875 crore against loans taken from the company.