News Point: Promoter Sunil Goel alleges malpractices and financial mismanagement at Omaxe Group; files legal petition against CMD Rohtas Goel.
Sunil Goel, the second largest promoter and shareholder of Omaxe Group has alleged for financial fraud at Omaxe Group. He has filed a legal petition against Rohtas Goel, Chairman & Managing Director, Omaxe Ltd for malpractices and financial mismanagement carried out in the company allegedly by Rohtas Goel.
Founded in 1987 by brothers Rohats & Sunil Goel, Omaxe has footprints in 8 states and 27 cities.
Whilst, Rohtas Goel is the Chairman and Managing Director & represents largest promoter shareholder group of the company, younger brother Sunil Goel represents second largest promoter shareholder group having 20 percent shareholding in the company.
Primarily, the shareholding of the Promoter and Promoter Group is through Guild Builders Private Limited, which holds around 65-70 percent shares of Omaxe Limited and is a holding company of Omaxe Limited.
In 2017, differences arose between both brothers regarding functioning of the company. It is believed that Sunil Goel started raising objections and protests about the malpractices and financial mismanagement carried out in the company by Rohtas Goel. He acted like a whistle-blower because of the same he was ousted from the company.
In last one year, Omaxe Group has increased its loan exposure from 1300 crores to 1800 crores. Sunil Goel has even written letters to various financial institutions and major shareholders of company informing about the financial mismanagement in the company requesting them to take necessary and immediate steps in shareholders’ interest.
On 17.09.2018, Sunil Goel and his group has filed Oppression and Mismanagement Petition before the NCLT Chandigarh in respect of Omaxe Limited as well as for Guild Builders Private Limited.
It is believed that he has sought for reinstatement as the Director of the companies, status quo on assets and sought injunction that shares of Omaxe Limited held by Guild Builders should not pledged for taking further loans by Omaxe Limited.
The current financial scenario of the Group is not stable, and the profitability dipped despite taking extra loans from various Banks and financial service providers.