Dalmia Bharat has issued a formal response regarding recent media reports concerning the fraudulent transfer of mutual fund units by Allied Financial Services Private Limited. The company has categorically denied the allegations in these reports, asserting that its subsidiary, Dalmia Cement (Bharat) Limited, was the victim of misappropriation. Following extensive investigations and legal intervention, the company confirms that its assets were released by the Supreme Court in August 2019.
Background on Security Misappropriation
The company clarified that its subsidiary, Dalmia Cement (Bharat) Limited (DCBL), previously maintained a demat account with Allied Financial Services Private Limited. Allied, acting as a depository participant, misappropriated mutual fund units from this account. Upon discovery, DCBL initiated comprehensive legal actions and lodged complaints with multiple authorities to recover the assets and hold the responsible parties accountable.
Legal and Investigative Findings
Following a 2019 investigation by the Delhi Police, a chargesheet was filed confirming that mutual fund units were criminally misappropriated by Allied in connivance with IL&FS Securities Services Limited (ISSL). Independent probes subsequently revealed that the clearing agent, ISSL, facilitated these irregular transfers, allowing Allied to wrongfully use the Dalmia Group’s securities for its own trading purposes. Various enforcement authorities have since taken action, including asset seizure and the imposition of penalties on the involved entities.
Recovery and Current Standing
In a significant legal resolution, the Supreme Court of India, after reviewing evidence and rival contentions, passed an order on August 27, 2019, directing the release of the mutual funds back to DCBL. This recovery has been fully documented in the company’s financial statements. Regarding recent speculative reports, the management maintains that no prior clarification was sought from the company, labeling such publications as motivated and contrary to responsible journalism standards.
Commitment to Transparency
The company reaffirms its unwavering commitment to corporate governance and legal compliance. Despite ongoing commercial disputes with third parties involving subsidiaries, Dalmia Bharat remains dedicated to maintaining the highest levels of transparency and operational integrity for all its stakeholders.
Source: BSE
