Another day. Another scam. Another loan defaulter facing the regulatory scanner.
Hyderabad-based Sujana Group, owned by the industrialist and Rajya Sabha MP Sujana Chowdary, has been a chronic defaulter of bank loans for the last few years. The group and all its associated companies have a combined debt of ₹7,500cr ($1bn) and are currently being investigated by multiple enforcement agencies.
Yesterday, the Economic Times reported on yet another scam that the Sujana Group seems to be caught in. It involves the manipulation of Global Depository Receipts (GDR) issues.
The SEBI has been probing and penalising GDR frauds for quite some time. In 2017, the regulator passed six orders penalising various entities involved, most prominent among whom was Arun Panchariya, the founder of Pan Asia (a merchant banking firm), who was at the centre of the scam.
Turns out that the Sujana Group followed Panchariya’s script to a T while issuing GDRs and defrauded…