Feuding brother casts shadow on Omaxe
In 2018, the Goel brothers had just begun their war ‘officially’ over the company, Omaxe Limited, followed by Sunil Goel’s move to the National Company Law Tribunal alleging financial mismanagement by his elder brother and founder of the company, Rohtas Goel
NEW DELHI: In 2018, the Goel brothers had just begun their war ‘officially’ over the company, Omaxe Limited, followed by Sunil Goel’s move to the National Company Law Tribunal alleging financial mismanagement by his elder brother and founder of the company, Rohtas Goel. However, it was a melting point that threw light into the alleged scam, in which Rohtas Goel allegedly had unaccounted cash transactions to the tune of Rs 3,000 crore, according to the Income Tax Department. The civil engineer-turned-first generation entrepreneur Rohtas started the company’s contracting business on a small scale in 1987. Within two years, his company was incorporated as Omaxe Builders Private Ltd, and in 1999, it became a ‘Limited Company’.
Headed by Goel, Omaxe slowly but steadily made its footprints in the real estate sector. By 2007, Omaxe came out with its initial public offering (IPO), which got oversubscribed by 70 times. Soon, the company spread its presence in 27 cities across eight states. Since then the smalltown youth from Haryana’s Hassanpur had not looked back until his own brother turned against him. In January last year, the Chandigarh bench of the National Company Law Tribunal (NCLT) admitted the petition filed by Sunil Goel against Omaxe Ltd over alleged acts of oppression and mismanagement by the company and its management.
Sunil, who was the former Joint Managing Director of the company, levelled allegations against Rohtas for indulging in financial fraud, siphoning off funds, insider trading, and inflation of turnover of the company. The petition said that in June 2017, Omaxe took a loan of Rs 250 crore from Indiabulls Housing Finance Limited, as per the minutes of the Executive Committee’s meeting. It said that though Sunil Goel was a part of the Executive Committee, he did not receive any notice of the meeting wherein the resolution for taking the loan of Rs 250 crore was approved. “It is also stated that Sunil Goel has been repeatedly appointed as Joint Managing Director of Omaxe Limited till 27.09.2017 on which date he was illegally ousted in the 28th Annual General Meeting of the company where several resolutions, declaring dividend only to non-promoter shareholders and appointment of Seema Prasad as Director of Omaxe Limited, were passed,” it said.