Differences within real estate major Omaxe Group’s promoter family has come out in the open with ousted joint managing director Sunil Goel dragging his brother and group chairman Rohtas Goel to the National Company Law Tribunal (NCLT), accusing his elder sibling of “financial mismanagement” and “fraudulent transactions”.
Sunil Goel, who was removed as the company’s joint managing director (JMD) in 2017, has sought his elder brother’s ouster as the company’s chairman and also demanded that the company’s books of accounts be forensically audited.
The younger Goel has also sought his immediate reinstatement as the company’s JMD in his petition on September 17 to the NCLT.
Goel has alleged that “the respondents (the company) indulged in illegal practice of financial mismanagement and fraudulent transactions to prejudice the intent of (the respondent’s) company.”
The former JMD has alleged that he has was “illegally without due process removed from the company from the position of the joint managing director.”
He has also charged his brother with “oppression”.
Rohtas Goel is the chairman and managing director and represents largest promoter shareholder group of the company, younger brother Sunil Goel is the second largest promoter shareholder group with 20 percent shareholding in the company.
The promoter group holds 74.72 percent shares in the company through Guild Builders Private Limited.
In 2017, differences arose between both brothers regarding functioning of the company. It is believed that Sunil Goel had raised objections and protested against the alleged malpractices and financial mismanagement within the company and was later ousted.
Sunil Goel has sought his 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”.
He also charged the Omaxe group chairman with “misappropriating and misutilisation of funds”.
Sunil Goel has also claimed that over the last one year, Omaxe Group’s debts have jumped to Rs 1,800 crore from Rs 1,300 crore.
Omaxe Group has denied the allegations.
“We state that false and frivolous allegations have been raised by Sunil Goel in the Company Petitions filed before the NCLT, Chandigarh and as the matter is sub-judice, the same will be dealt with, in accordance with law,” the statement said.
Founded in 1987 by Rohtas Goel, Omaxe Limited has a footprint in eight states and 27 cities.