An FIR has been lodged with Economic Offences Wing (EOW) of the Delhi Police against Qatar-based Hassad Food Company and its officials, for alleging cheating, criminal conspiracy, forgery and indulging in breach of trust. The case has been registered on a complaint of Virkaran Awasty, promoter of Bush Foods at Vasant Vihar police station. Awasty alleged that he has been ruined and incurred a loss of Rs500 crore due to Hassad Foods.
As per the FIR, Nasser Al Hajri, Khaled Radi and Andrew Goodman are responsible for the deliberate withholding and non-payment of over Rs100 crore to unsecured creditors despite having given repeated assurances and promises to Virkaran Awasty.
“As a result to their despicable acts, the complainant was forced to pay Rs24 crore from his own funds and he has been further exposed to prosecution under Section 138 of the Negotiable Instruments Act, 1882 although no debt or liability for and on behalf of the Company is maintainable against him,” the FIR said.
Awasty, who is still holds 30.5 per cent stake in the Bush Foods company, was the promoter of the company that was set up in 1992 and clocked revenues over Rs1,000 crore last year by selling brands such as Neesa, Himalayan Crown and Indian Star basmati rice. The company is the leading exporter of different brands of basmati rice. He had invited foreign investment from Hassad Foods in 2012.
“The accused fraudulently removed stocks worth amount Rs900 crore from the warehouses of the company and sold them in the grey market and received cash payment. All the money received from the illegal sale of stock was then remitted to their parent company in Qatar through illegal hawala channel,” the FIR said.
However, Hassad Food has alleged that it invested around Rs750 crore in Bush Foods in April 2013 for 69.5 per cent stake based on false financial statements and nonexistent inventory. According to FIR, Awasty issued a preliminary reply to the said notice on December 2, 2013 stating that the Circular Resolution is illegal and void since the same was not circulated to him. It is pertinent to mention that no response has been received till date on this.
“The accused also fraudulently induced him to transfer Rs 95 crore to the company with a false verbal assurance that the money would be returned to him with interest,” it said. The complainant further alleged that the accused person had deliberately ensured that the cheques issued to the creditors are dishonored so that legal proceedings are initiated against him to remove from the company.
Hassad Food’s legal counsel Simon HendeRs on, in its FIR against Virkaran and his wife alleged that Bush Foods’ top management, including promoter Virkaran Awasty provided incorrect financial statements to induce investment.