Kinetic Finance Limited Scam

Kinetic Finance Limited Scam was a scam in India, in which various Indian banks lost about . The promoters of Kinetic Finance Limited borrowed from a consortium of banks led by SBI and another from Bank of Baroda & UTI Mutual Fund. After borrowing the funds they were siphoned off and diverted to other business entities of the Kinetic Group, the promoters resigned from the company and also changed the name of the company to Athena Financial Services Limited. A 'special Investigation Audit' was conducted by the consortium in January 2004 and the report was submitted in February 2004. Based on the Audit Report 5 banks filed criminal cases on the defaulting promoters alleging fraud, cheating and willful omission and concealment of information with an intent to defraud the Banks. None of the Public sector banks reported the fraudulent willful defaults to the CBI/RBI and in a way protected the defaulters. An active connivance of some corrupt Public Sector Banks' officials can not be denied as they openly flouted the RBI guidelines on fraud reporting and initiating criminal action against willful defaulters. Defaulter were unable to get any relief from Bombay High Court and Supreme Court. More than 10 Banks have continuously reported the name of Mr. Arun H Firodia (Chairman) and his daughter Ms. Sulajja Firodia Motwani, to CIBIL at www.suit.cibil.com as willful defaulters from March 2005 to March 2012. Despite having the status of a declared willful defaulter Mr. Arun H Firodia has been awarded the Padma Shri Award in 2012. A leading online financial journal of India moneylife.in has exposed the matter in full details based on an RTI reply received by an RTI activist.. At present the matter is under the scanner of investigating / intelligence agencies of India.

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