The Excise Department, Puducherry has cancelled the license of Ravikumar Distilleries Ltd. (RKDL) for various irregularities, which includes removal of IMFL from the factory without payment of Excise Duty, viz. illegal removal of liquor for cash for the last many years. The promoter Mr. R.V. Ravikumar has a long history of illegal activities starting from 2010, when he had diverted funds to the tune of Rs.33 crores from the IPO of RKDL through some Companies. The amounts are still outstanding in his annual accounts till date as “Advances to Suppliers”. On 06.02.2012, Mr. R.V. Ravikumar entered into an MoU for squaring up of entries in his Books of Accounts to the tune of approx. Rs.33 crores by way of Cash to Cheque and Cheque to Cash, wherein he would be given bills of machinery / infrastructure. This scheme of his could not go through due to start of investigation of SEBI in 2012. The aforesaid MoU also stated that his bank account would be utilized for these transactions.
On the matter being investigated by SEBI in 2012, he conveniently gave a story of giving over 100 blank signed cheques to the Merchant Banker, Anil Agrawal and stating that the Merchant Banker transferred funds from the bank account of RKDL for nearly one and a half years, but the Company was unaware of the same. He had further diverted an amount of Rs.22 crores to his sister concerns for land purchase in Karnataka (ostensibly to put up a new Unit but actually land speculation).
Mr. R.V. Ravikumar has also indulged in benami transactions and has also violated sections of the Companies Act by transferring funds to his employees / associates, partly from his own account / RKDL company account for purchase of shares of his company, RKDL through 3 nominee companies, i.e. Chiraag Suppliers Pvt. Ltd., Nandlal Vyapaar Pvt. Ltd. and BPJ Holding Pvt. Ltd.. These companies are holding over 27.35% (combined) in RKDL and the same have been shown as public holdings. He is actively supported in all his endeavours by a high ranking Whole Time Member of SEBI. The said Whole Time Member has also ensured that the hearing and Order for such violation by Mr. R.V. Ravikumar and Associates is not being passed by SEBI. In this matter, SEBI is only passing Orders for those Noticees who are now deceased, thereby ensuring that the matter is not concluded and final Order indicting Mr. R.V. Ravikumar and Associates is not passed.
His account had become NPA with SBI and by exercising political pressure, he has done a one-time settlement and thus caused a huge loss of Rs.13.21 crores (out of outstandings of Rs.20.96 crores) i.e. 63% written off to the bank. The amount of cash generated by him through illegal despatch and sale of liquors without payment of Duty is realized in cash, which is utilized for payment to various authorities, including police, politicians, SEBI and other Govt. officials.