Alpha Ideas

Hat Tip: Dhaval Shah

In 2006:

On a warm Delhi evening in 2006, star fund manager Madhusudan Kela and his trusted lieutenant Sunil Singhania were at a dinner with the promoter of food processing company REI Agro. The firebrand duo from Reliance Mutual Fund was considering an investment in the up and coming firm. The company had also arranged their visit to the factory the following morning. But as the dinner progressed and the chat kept coming back to REI Agro’s future plans, Kela became more and more excited. He asked the promoter if they could visit the plant immediately after dinner instead of the next day. Taken aback, the entrepreneur nevertheless said yes. So it was around midnight that Reliance Mutual Fund decided to make one of its most daring bets. –from Forbes

In 2017:

The CBI today arrested the chairman of REI Agro along with a promoter of the company in connection with an alleged bank loan fraud of Rs 3,871 crore.

It was alleged that the company had defrauded the banks to the extent of Rs 3,871 crore since 2013 through conspiracy, cheating and forgery, the spokesperson said.

It is alleged that the company cheated the banks using 150 shell companies, on the basis of fixed commission, through a group of brokers by creating false invoice, documents of money transfers for non-existent transactions, CBI sources said.-from Money Control