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May 12, 20237 min read

Legality Of Ajay Piramal’s Actions: A Brief Resume

Posted on 12/05/2023 (GMT 08:15 hrs)

Updated on 15/05/2o23 (GMT 04.34 hrs)

INTRODUCTION

In this article, we are trying to depict the Mr. Ajay Piramal’s activities in connection with our article on:


The Psychoanalysis of a Crony Billionaire: Ajay Piramal

Here, we are putting the events related to the business (not industry) of Mr. Piramal, CBE (HM), with chronologically arranged step-by-step analysis with legal codes and some reported speeches (despite that we have checked the facts), we do not want to comment on any of the opinions of social media and non-Godi media.

The Brief Resume

. AJAY PIRAMAL: AN INSIDER TRADER?

a) The Event:

· Piramal Enterprises fined Rs.6 lakh for insider trading VIEW HERE ⤡ (As reported on 5th October, 2016 ©The News Bytes)

However, SAT ignored SEBI’s fact findings (reason unknown)

b) What the Law Says:

An Instance of Punishment for Insider Trading: Rajat Gupta

· Rajat Gupta fined $13.9 million for insider trading VIEW HERE ⤡ (As reported on 18th October, 2016 ©The Hindu)

How did Ajay Piramal escape from the charge of alleged insider trading? Because he is more equal than others⤡.

II. MR. PIRAMAL’S POLITICAL NEXUS

Piramal couldn’t answer and didn’t even bother to reply to The Wire reporter’s pertinent questions. As The Wire wrote:

“…the Piramal Group made no attempt to clarify any point, or offer an answer to our questions.”

However, the Piramal Group finally threatened The Wire for making “defamatory statements” against it:

ROB PETER TO PAY PAUL! Mr. Piramal resold this company within few days, bearing huge loss as a result. Why did Mr. Piramal then buy such company from a BJP MP and Union Minister? The answer my friend, is not blowing in the wind: Mr. Piramal tried to satisfy the ruling party’s obnoxious greed.

How did Mr. Piramal and Mr. Piyush Goyal deny such grave allegation? Is this not a state of crony and monopoly capitalism⤡ in India? Because he is more equal than others⤡.

It is “normal” within the crony oligarchy!

III. THE DHFL SCAM, THE NCLT ORDER (19/05/2021) AND CONTEMPT OF COURT

a) The Event

NCLT first order (19/05/2021) on the DHFL case stated that the old promoter’s settlement proposal (providing for 100% repayment to all the creditors) should be (re-)considered by the CoC within 10 days; but the successful bidder, viz., Mr. Ajay Piramal, along with the CoC and Union Bank of India, rushed to the NCLAT to nullify this order (25/05/2021) without answering the NCLT in the first place. It is clearly a case of contempt of court. It is also to be noted that Bankruptcy will not void personal guarantees: Supreme Court VIEW HERE (As reported on May 22, 2021 ©The Times of India).

b) What the Law says:

The Contempt of Court Act, 1971 states that:

Section 2(a): Contempt of Court means Civil Contempt or Criminal Contempt. It means there is no any straight jacket formula has been mentioned in this definition. The definition is of inclusive nature.

Contempt of courts is the offence of being disobedient to or disrespectful toward a court of law and its officers in the form of behaviour that opposes or defies the authority, justice and dignity of the court.

Contempt of court can be classified into two broad segments of-

(a)Being disrespectful to legal authorities in the courtroom.

(b)Wilfully failing to obey a court order.

Acknowledgement: Prime Legal ⤡

Section 12 (Penal Provisions):

· Contempt of court is punishable by the Supreme Court and High Courts with either simple imprisonment for up to six months or a fine of up to Rs. 2,000, or both.

· The Supreme Court determined in 1991 that it has the authority to penalize for contempt not only itself, but also all other high courts, subordinate courts, and tribunals in the country.

· According to Section 10 of the Contempt of Courts Act of 1971, High Courts have been given unique powers to punish contempt of subordinate courts.

Acknowledgment: Prepp India ⤡

Did not Mr. Piramal fail to obey the court order by ignoring the NCLT’s given verdict? How did he get such hastened justice at the NCLAT? Because he is more equal than others⤡.

IV. The NCLAT Verdict (27/01/2022): bolt from the blue

a) The Event

NCLAT second order (27/01/2022) found many irregularities and illegalities (“contrary to law”) in the CoC’s resolution process, especially the way the CoC ignored the Section 66 of the IBC that provides for the benefit of all the creditors, as pointed out by 63 Moons Technologies.

b) The Great “Bajrang” Leap: going to the SC by ignoring the HC

Piramal hurriedly took a great leap on 1st March, 2022, and approached the Supreme Court of India directly to put a stay on the NCLAT’s highly pertinent order. He managed to do the same on 11th April, 2022.

A stay order, it is to be kept in mind, is a temporary injunction on a certain verdict by a higher/highest court. It temporarily stops or postpones the proceedings on a particular case.

Despite there are many anomalies in RBI-appointed CoC for DHFL’s approval of Piramal’s resolution plan, they have got the stay order from the SC when the victims of DHFL scam are struggling for their existence.

However, how did he get such rapid justice at the Court, yet again? Why did he not first approach the HC with his petition against the NCLAT order? Did he thus not ignore the properly chronological legal trajectory? Again, such action proves that Mr. Piramal is more equal than others⤡.

It is “normal” within the crony plutocracy!

V. RBI-Appointed Coc For DHFL’s Opaque Behaviour

It is said that a Resolution Professional will come within the meaning of ‘Public Servant’ under Section 2(c) of the Prevention of Corruption Act, 1988 and Section 233 of IBC (2016) does not protect where s/he has been apprehended red-handed with the bribe amount (in Sanjay Kumar Agarwal Vs. Central Bureau of Investigation, Anti-Corruption Bureau, Dhanbad – Jharkhand High Court).

DHFL victims experienced that, during the so-called “transparent” meetings of the CoC, many pertinent questions are not being answered.

Therefore, after viewing the second verdict of the NCLAT, some DHFL victims demanded return of the fees of the two public servants: Mr. R. Subramania Kumar and Mrs. Charu Charu Desai

The problems are that the CoC for DHFL, though serving the public by utilizing DHFL victims’ money, are against the DHFL Victims, who have lost their lifetime savings. Moreover, a huge amount of money is allotted for the future cases to be fought against the DHFL victims’ legitimate demands. It is matter of regret that the ill-conceived IBC (2016) is a sword for cutting the heads of the victims.

It is “normal” within the crony autocracy!

VI. Piramal Trespassing When The DHFL Case Is Under Adjudication

The crucial question is: can anyone own a company pending adjudication? Is it not a case of “adverse possession“⤡? Mr. Piramal occupied the DHFL by using dubious names (Piramal CHFL aka Piramal Finance). Mr. Piramal is happily running the company without giving any attention to many cases filed by the DHFL victims, which are still pending.

Under Adjudication VIEW HERE ⤡ means that “the legality of the transaction is still under adjudication (= being decided) in the courts.”

It is “normal” within the fascist regime!

CONCLUSION

In the context of monopoly and crony capitalism, concentration of wealth is inevitable. We have seen bankruptcies, superrich wilful defaulters vis-à-vis poverty, unemployment, hunger, suicides, unhappiness etc. The oligarchic regime does not care about such important issues. Instead, they are busy with fashion parades (so-called political rallies), ostentatious display of Central Vista, Vishwanath Dham Corridor, Ram Mandir etc. All these cannot solve the real miseries of the citizens. Therefore, mass mobilization is necessary when citizens are within the failed state and sick society.

All About Ajay Piramal:

It is “normal” under crony capitalism!

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