C&C Towers Investors Allege Fraud; HC Judge Issues Notice
Moneylife Digital Team 16 August 2021
The Delhi High Court has issued notices to 12, including Union government and C&C Towers Ltd, in a writ petition filed by 94 financial creditors of the company. 
 
In her order issued last week, justice Rekha Palli observed that these 94 financial creditors of C&C Towers had filed the petition against the resolution process carried out against the company.
 
"The present writ petition has been preferred by 94 financial creditors of C&C Towers with a grievance that the resolution process in respect of the said company—which is being carried out pursuant to the orders passed by the National Company Law Tribunal (NCLT) at Chandigarh, if finalised, will gravely prejudice their interest as the Insolvency and Bankruptcy Code (IBC) does not provide for a remedy of restitution—even in cases where the corporate debtor has raised money through a fraudulent investment scheme," the bench noted.
 
(Source: Valuation Report by GAA Advisory)
 
Justice Palli then asked to issue notices to all respondents. The next hearing is scheduled on 26 October 2021.
 
These investors, who invested in C&C Towers project at Mohali through Karvy Private Wealth, have been raising their grievances at various forums, including with the resolution professionals (RPs) appointed for the company. 
 
One of the investors in this project says, "The way the resolution plan worked, it is an eye wash and completely neglecting the interest of the deposit holders. The offer for us is to recover 13% of our principal over seven years. We had invested this amount in 2016."
 
"The sad part of these schemes is most of the investors are senior citizens, who believed in Karvy and they designed these multiple schemes to dupe these investors and they are all distressed as this is the saving of their entire life," the investor alleges. 
 
Interestingly, it is also revealed by the investors that there was 'fraudulent' excess booking for the project for about 2.89 lakh sq ft as against the available space of around 91,000 sq ft. 
 
(Source: Valuation Report by GAA Advisory)
 
Another investor, who has been sending emails to anyone and everyone who would listen, says, "When the CIRP process started in 2019, many big names in real estate submitted their Expression of interest to take over this prime project. Each of the applicant company had lots of real estate projects to showcase in their resume. But they chose Mahakram Ddevelopers, who does not have a single real estate project to show in their history of past 10 years.
 
"Looking at filling of Mahakram's balance sheets on the ministry of corporate affairs (MCA) website for past eight years, it has no income, no revenues, no products, and no services, whatsoever to show in the balance sheet. There are only losses reported every single year."
 
There are around 653 investors who had invested about Rs90 crore in C&C Towers project through Karvy Private Wealth. 
 
C&C Towers was incorporated in 2009. In April 2009, it signed a 20-year concession agreement with Greater Mohali Area Development Authority (GMADA) in April 2009 for an inter-state bus terminal, three multi-storied towers with retail and office spaces, multiplex, five-star hotel, banquet hall, hypermarkets, and a helipad on top of one tower.
 
In the due course of its operations, the company was not able to meet its debt obligation due to which it went into corporate insolvency resolution process (CIRP) in October 2019. The application for CIRP was filed by two individuals under Section 7 of the IBC. 
 
These investors of C&C Towers are now hoping that they would get justice from the courts. Commenting on the Delhi HC hearing, one of the investors says, "Not sure, if this would help us to recover our money or not, but at least the High Court mentioning it as fraudulent scheme in its notice makes us feel good."

 

Comments
saharaaj
1 month ago
how to locate honest persons in real estate does C & C stands for CROOKS and Cheaters ??
rsaharia
1 month ago
Thank You, MONEYLIFE for your article. The bare fact is that KARVY PRIVATE WEALTH has joined hands with a good number of corrupt developers to cheat Senior Citizens of this country who are looking for a place to park their hard-earned retirement funds. I am also one such Senior citizen who fell into their trap, as they were very clear that KARVY has carried out due diligence on the developers and the project. All persons who are trying to help C&C Towers, mainly KARVY, RP, representatives of banks who agreed to this unthinkable and unbelievable haircut must all be acted on. And more than anything, request MONEYLIFE to please find out the background of MAKRAM, which appear to be a front of C&C Towers.
jitender_kaul
1 month ago
Karvy private wealth has cheated thousands of investors with fraudulent schemes whether fixed deposit with a real estate company with a assured returns or NCDs of diffrent companies .
One of the scheme is C&C towers on which DHC has issued the notice .
Thanks to money life for highlighting .
suresh_samuel
1 month ago
Karvy private wealth has cheated thousands of investors, largely senior citizens, of their entire life’s savings and lured them to invest in more than two dozen real estate projects. Karvy has colluded with the real estate projects and charged hefty commissions from both sides. The present orders from Honourable Delhi High court is welcome respite for the investors. We appreciate and thank Money Life and Sucheta Dalal for bringing it to light. There are several such frauds committed by Karvy and we shall be grateful if MoneyLife can bring them to light too.
I would be grateful if all the money cheated by C&C and Karvy is retrived & returned back to the investors ASAP as in this time of Corona it will help a lot of Sr. Citizens could be helped.
rajneekanth
1 month ago
Karvy private wealth has cheated thousands of investors, largely senior citizens, of their entire life’s savings and lured them to invest in more than two dozen real estate projects. Karvy has colluded with the real estate projects and charged hefty commissions from both sides. The present orders from Honourable Delhi High court is welcome respite for the investors. We appreciate and thank Money Life and Sucheta Dalal for bringing it to light. There are several such frauds committed by Karvy and we shall be grateful if MoneyLife can bring them to light too.
ravindra.bohra
1 month ago
Not only C & C Towers but #Karvy Private Wealth has sold more than 25 such ponzy schemes, with false assurances, of real estate projects and mostly to senior citizens who trusted Karvy. To name a few #Mirador Mumbai, #ConceptCapital Ghaziabad #ConceptHorizon NOIDA, #GreensFarmTech Bangalore, #Kasatta, #Bhagyalaxmi, #Vaishnodevidairyproducts and many more. Various cases of check bouncing in different parts of India are pending against #Karvy and NBW warrants have been issued but police is not taking any action. #Karvy also advised the investors not to put cheque bounce cases to save the corporate debtors. Cases are pending in NCLT, NCLAT, Delhi High Court, ED Mumbai etc.
rnchivukula
1 month ago
Thanks to Moneylife for publishing about the fraud committed by Karvy Wealth and C&C Towers.Karvy took huge commissions and gave us mostly all Senior citizens false promises that we would get back the Principal with interest in 2 years.That was in 2016 and 5 years later struggling to get justice in court.
ravindra.bohra
Replied to rnchivukula comment 1 month ago
Not only C & C Towers but #Karvy Private Wealth has sold more than 25 such ponzy schemes of real estate projects and mostly to senior citizens who trusted Karvy. To name a few #Mirador, #ConceptCapital, #ConceptHorizon, #GreensFarmTech, #Kasatta, #Bhagyalaxmi, #Vaishnodevidairyproducts and many more. Various cases of check bouncing in different parts of India are pending against #Karvy and NBW warrants have been issued but police is not taking any action. Cases are pending in NCLT, NCLAT, Delhi High Court, ED Mumbai etc.
venkat.cal
1 month ago
Karvy Private Wealth, on whom I had high regard, organized a presentation at Park Hotel, Kolkata where they presented this fraudulent scheme as a good investment opportunity because it was a PPP project between Govt. of Punjab and C&C Group, hence 100% safe. When I had actually handed over my cheques to Karvy, they concealed the fact that the project GMADA had already withdrawn from that project. Karvy is hand in glove with C&C management in this financial fraud committed on unsuspecting investors.
arinds
Replied to venkat.cal comment 1 month ago
Do you remember the date of the presentation made by Karvy Private Wealth team? that will help Mr. Basu to join the dots and how the fraud has been planned.
ravindra.bohra
1 month ago
Karvy private wealth has cheated thousands of investors, largely senior citizens, of their entire life’s savings and lured them to invest in more than two dozen real estate projects. Karvy has colluded with the real estate projects and charged hefty commissions from both sides. The present orders from Honourable Delhi High court is welcome respite for the investors. We appreciate and thank Money Life and Sucheta Dalal for bringing it to light. There are several such frauds committed by Karvy and we shall be grateful if MoneyLife can bring them to light too.
arinds
1 month ago
Thanks for reporting this and bringing it to the notice of larger public, as the earlier reader commented, there are so many such frauds happening in our country, unless we make our public aware, they will not understand.
tapanksur
1 month ago
nothing new, this has been happening everywhere in the country. Investors, banks, developers, regulators, our representatives whom we elect become law makers, and everybody is a t fault. Investors know for sure there are hawks ready to pounce on their hard earned money, buy still get coined & if alerted by do gooders for eg: moneylife, they will close their ears with earbuds & only listen to musik. Such things will keep happening, unill we campaign for "RIGHT TO RECALL", once in force, even the aliens from above the heavens will descend on earth to live with us!
mdappapmt
Replied to tapanksur comment 1 month ago
These criminals should be bought to books, sufficient coverage provided on public media to avoid bigwigs such as Karvy luring more citizens and stealing money by selling ponzi schemes
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