Bankim Brahmbhatt, an Indian-origin telecom entrepreneur based in the US, has been accused of orchestrating a large-scale loan fraud exceeding USD 500 million, according to The Wall Street Journal (WSJ). The alleged scheme has reportedly left BlackRock’s private-credit arm and other lenders, including HPS Investment Partners, struggling to recover hundreds of millions of dollars.
Allegations of a 'breathtaking' fraud
Brahmbhatt, who serves as the President and CEO of the Bankai Group, allegedly fabricated customer accounts and receivables to secure massive loans from American lenders. Among them is HPS Investment Partners, a private-credit firm backed by BlackRock. The WSJ report described the alleged fraud as “breathtaking,” with lenders accusing Brahmbhatt of pledging fake assets as collateral.
According to court filings, HPS began lending to a financing arm tied to Brahmbhatt’s companies in September 2020, later increasing its exposure to about USD 430 million by August 2024. French banking giant BNP Paribas also helped finance the loans.
The alleged fraud was uncovered in July 2024, when an HPS employee noticed that some customer emails originated from domains imitating real telecom firms. When questioned, Brahmbhatt reportedly told HPS officials there was “nothing to worry about” before ceasing all communication.
Subsequent investigations by accounting firm CBIZ and law firm Quinn Emanuel, hired by the lenders, revealed that several invoices and emails provided as proof of receivables were falsified. A Belgian telecom firm, BICS, told investigators it had “no connection” to the emails used by Brahmbhatt’s companies, calling it a “confirmed fraud attempt.”
Who is Bankim Brahmbhatt?
Bankim Brahmbhatt is the founder, president, and CEO of Bankai Group, a US-headquartered telecommunications and fintech conglomerate. The group owns Broadband Telecom and Bridgevoice, two lesser-known telecom firms accused of being at the centre of the financial scandal.
In earlier interviews with Entrepreneur Middle East and Industry Chronicle, Brahmbhatt described himself as a “telecom engineer turned entrepreneur” who began his career in 1989 with a push-button telephone manufacturing unit in India. Over the decades, his ventures grew into satellite communications, telecom billing, and digital financial services.
Bankai Group’s flagship product, MobiFin Elite, provides digital financial services across multiple countries, particularly in Africa. The group describes itself as a “globally recognized leader in the telecommunications industry.”
What the lawsuit alleges
Lenders claim Brahmbhatt “created an elaborate balance sheet of assets that existed only on paper.” They allege he falsified contracts dating back to 2018 and transferred pledged assets into offshore accounts in India and Mauritius.
According to WSJ, BNP Paribas has recorded about €190 million (roughly USD 220 million) in loan-loss provisions related to the case, though it did not name the borrower.
Brahmbhatt’s companies, Broadband Telecom, Bridgevoice, Carriox Capital II, and BB Capital SPV, filed for Chapter 11 bankruptcy in August, collectively owing more than half a billion dollars. Brahmbhatt himself filed for personal bankruptcy on August 12, the same day his companies entered protection proceedings.
Where is Bankim Brahmbhatt now?
People familiar with the case told WSJ that lenders believe Brahmbhatt is currently in India. A person who visited his Garden City, New York, offices in July found them closed and deserted. Neighbours and nearby tenants told reporters they had not seen any activity at the premises for weeks.
At Brahmbhatt’s listed residence, several luxury vehicles, including BMWs, a Porsche, a Tesla, and an Audi, were seen parked in the driveway, according to the WSJ report.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
