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Alchemist Infra Realty Under Scrutiny

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Alchemist Infra Realty Under Scrutiny

Last updated: June 23 2013
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  • Alchemist Infra Realty Under Scrutiny

    Hope Land price will come down

    The collapse in West Bengal of the Saradha group and its alleged links to Mamata Banerjee's party, has brought attention to another company under a cloud and which too has prominent links to the Trinamool Congress.

    The Alchemist Group is a 10,000-crore rupee group with 11 companies and 9,800 employees across the country. It was started by industrialist KD Singh in 1981. Mr Singh, now a Rajya Sabha MP from the Trinamool Congress, retired from all paid positions in the Alchemist Group in September 2012, after he became an MP. He continues to be chairman emeritus of the Alchemist Group.

    In early 2012, the Reserve Bank of India forwarded a complaint by CPI leader D Raja against Alchemist Infra Realty Limited, one of the group's companies, to the Registrar of Companies or ROC. Mr Raja alleged that the company was raising money from the public by improper means.

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    The ROC conducted an enquiry and noted in a report that Alchemist Infra Realty Limited had raised Rs. 449.41 crore from the public in 2010 by issue of brochures and offering various schemes like allotment of residential plots and debentures, and in 2011, this amount swelled to Rs. 1087.69 crore.

    The ROC report observed that, "the company does not have any land assets and it has simply collected funds from the public on false promises " and warned that, "there is every possibility that public shall not get due returns after maturity."

    The Registrar of Companies also said there was the possibility of " large, well planned, collusive financial impropriety which can harm the interest of thousands of small depositors." It recommended an investigation.

    Then Corporate Affairs Minister Veerappa Moily ordered an investigation to be carried out by the Serious Fraud Investigation Office or SFIO.

    The Alchemist Group, which emphatically denies all charges of impropriety in business, moved the Delhi High Court for a stay order against the inquiry, which was granted. The next date of hearing is in a few months from now.

    The group has told NDTV, "Alchemist is a large group and believes in fair business practices. The cited matter is in court and hence subjudice. We believe in the law of the land and will follow the law always."

    The emailed response to NDTV's queries also said, "(It) suffices to say that we don't agree with the charges which were based on motivated complaints hence the matter is in court of law. (It) won't be out of place to mention that Alchemist group is in existence since last 32 years and has never defaulted in any business or financial commitments towards public in general or any institutions in particular."

    Trinamool MP KD Singh's company Alchemist Infra Realty under scrutiny | NDTV.com
    Last edited April 25 2013, 04:15 PM.
  • #2

    #2

    Re : Alchemist Infra Realty Under Scrutiny

    Alchemist Realty makes serial bids for prime properties in Lutyens' Delhi

    News Item November 2012

    Businessman and Trinamool Congress leader KD Singh has created a flutter in the Lutyens Bungalow Zone with serial bids for properties on Amrita Shergill Marg, Tughlaq Road and Prithviraj Road.

    The realty arm of the Alchemist Group that the Rajya Sabha member owns has shown interest in buying a property on Tughlaq Road close to the prime minister's office, persons familiar with the matter told ET. The owners, who decided to sell the property after the court settlement between the family members last year, hope to get about Rs 600 crore for the 8,000 sq yard bungalow with over 30,000 sq ft of built-up space, a broker associated with one faction of the family said.

    The company is also in talks with the owners of a 2,200 sq yard property with 4,800 sq ft of built-up space on Prithviraj Road, one of the persons said, adding that the owners are asking for about Rs 210 crore.

    The company had also recently bid Rs 141 crore for a 4,700 sq ft bungalow built on a 0.723 acre plot on Amrita Shergill Marg, which houses business leaders including Sunil Bharti Mittal, Hari S Bhartia, BK Modi and builder Kabul Chawla. While Airtel's Rajan Mittal bettered Singh's bid for this property by offering Rs 156 crore, according to two people familiar with the developments, Singh's companies are currently in discussions with the owners of the other two properties.

    Singh, whose group owns fast-food chain, Republic of Chicken, along with hospitals in Gurgaon and Chandigarh, told ET that his company Alchemist Realty has been scouting for good properties for investment in the Lutyens Bungalow Zone.

    Saleable properties in this most coveted of residential areas in the country are in short supply because just 65 of the 1,000-odd bungalows are privately owned while the rest belong to the government and are occupied by senior politicians, bureaucrats and judges. This has pushed up prices to levels unheard of in any other part of Delhi and, in many cases, outshining even the pricier south Mumbai.

    Prices in the area range from about Rs 150 crore, for a bungalow built on less than an acre, to Rs 500-600 crore for larger bungalows.

    The bungalow on Amrita Shergill Marg for which Rajan Mittal has bid Rs 156 crore is much smaller than the one down the road for which his brother, Sunil Mittal, paid Rs 38 crore in 2002.

    Deals often take very long to close in this area because most bungalows on sale involve litigation between the multiple owners who have inherited these houses. In the most recent transaction, the promoters of reality firm DLF paid Rs 280 crore to Samir Thapar of JCT for a bungalow on Aurangzeb Road last year.

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    • #3

      #3

      Re : Alchemist Infra Realty Under Scrutiny

      Refund order to Alchemist Infra

      OUR SPECIAL CORRESPONDENT
      Calcutta, June 22: Sebi has barred Alchemist Infra Realty Ltd from continuing its collective investment scheme and ordered that investors, several of whom are said to be in Bengal, be refunded within three months.

      The capital market watchdog’s order said the company had denied it had anything to do with Alchemist Group, which is run by the family of K.D. Singh, a Rajya Sabha member from the Trinamul Congress. Some party leaders and MPs had come under fire after the collapse of Saradha, which was also collecting deposits in the name of collective investment schemes.

      Alchemist Infra Realty is registered in Delhi but industry sources said it had a considerable presence in West Midnapore.

      The Sebi order said Alchemist Infra Realty had mobilised Rs 1,087 crore as on March 31, 2011. Sebi did not specify the states where the company had operations, but the order listed many Bengali names among the company's investors.

      Five directors of Alchemist Infra Realty have also been barred by Sebi from operating collective investment schemes.

      Sebi said it would make a reference to the state government and local police to register civil/criminal case against the company. The order did not specify if it meant the state where the company is registered, in which case it will be Delhi, or the states where it operated, in which case Bengal will also have to take action.

      The Sebi order said an application by one of the “investors” in Alchemist Infra Realty had mentioned Alchemist Group, whose chairman emeritus is Singh, and listed its activities.

      In response to an emailed question from The Telegraph whether Alchemist Infra Realty is part of Alchemist Group, Sarabhjot Kaur, corporate communications head of Alchemist, said tonight: “This Sebi order has come in on Friday evening and our legal department is studying it. We reiterate that Alchemist is a law-abiding group and will abide by the directions of the law of the land. Beyond this, we will not like to respond at this stage.”

      Refund order to Alchemist Infra

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      • #4

        #4

        Re : Alchemist Infra Realty Under Scrutiny

        Yes, this in the news today. Thanks for posting here.

        Comment

        • #5

          #5

          Re : Alchemist Infra Realty Under Scrutiny

          Originally posted by joydeepr1 View Post
          Yes, this in the news today. Thanks for posting here.
          Another wicked down of a RE bubble mafia.

          If all regulators work efficiently, lots of bubble will automatically go away.. and India will be a better place in terms of business.

          Comment

          • #6

            #6

            Re : Alchemist Infra Realty Under Scrutiny

            Guys, really need your suggestions. I have invested some good amount here, around 300K. Please advice if I should pull my money, or wait for them to react to SEBI's direction to return all investor money within 3 months!!

            Comment

            • #7

              #7

              Re : Alchemist Infra Realty Under Scrutiny

              I will recommend .. take back the money asap. Its not the right time to invest in any scheme which is not regulated. There is a big debt crisis coming in, they can bust anytime.

              Comment

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