Who Is Bankim Brahmbhatt? The Indian-Origin Man Allegedly Behind A Half-Billion Dollar Loan Fraud | India News
Bankim Brahmbhatt, a businessman of Indian origin, is the central figure in a massive fraud scandal that has been called “breathtaking” and has left BlackRock’s private lending arm and other lenders scrambling to recover more than $500 million.
Bankim Brahmbhatt-who is he?
Bankim Brahmbhatt, through Bankai Group, owns Broadband Telecom and Bridgevoice, two lesser-known telecommunications services firms. Bankai Group claims to be a global leader in providing infrastructure and connectivity solutions to telecom services operators at all levels worldwide. In a social media post in July, Brahmbhatt is described as the Group’s President and CEO.
Add Zee News as Preferred Source
Until recently, Brahmbhatt had offices in Garden City, NY. There is little about him on the internet, and a LinkedIn profile that appears to belong to him is said to have now been deleted.
Allegations: Fabricated Collateral and Offshore Transfers
Lenders, including private lending giant HPS Investment Partners, which was recently acquired by BlackRock, allege Brahmbhatt created a complex network of financing institutions, including Carriox Capital and BB Capital SPV, to borrow hundreds of millions of dollars.
The central accusation is that Brahmbhatt systematically produced customer invoices and contracts starting in 2018 and then used these fake accounts receivable as collateral for loans worth more than $500 million.
Lawyers for the lenders wrote in the complaint that “Brahmbhatt created an elaborate balance sheet of assets that existed only on paper,” according to the Wall Street Journal. What’s more, the lenders say the investigation uncovered evidence that all customer emails sent in the past two years were fraudulent.
They also accuse him of transferring pledged assets to offshore accounts, first in India and then in Mauritius. Brahmbhatt’s lawyer flatly denied the allegations of fraud.
Bankruptcy applications and search for defendants
The financial collapse happened quickly:
Brahmibhatt’s telecom companies declared bankruptcy last August.
He personally filed for Chapter 11 bankruptcy on August 12, the same day his companies began bankruptcy proceedings. Two financing vehicles, Carriox Capital II and BB Capital SPV, also filed for bankruptcy protection last week. Lenders said they believed Brahmbhatt was currently in India. An HPS representative went to their offices in Garden City in July and found them locked and empty.
Luxury cars were parked outside the residence next door, reportedly owned by Brahmbhatt, but his office room was still locked and empty Wednesday. It has been reported that BNP Paribas also provided debt financing for loans issued by HPS Investment Partners, but the bank has so far refused to comment on the issue.
ALSO READ | Weather Alert: Cyclone Montha devastates South India; North India Hit with ‘Pink Cold’ and Sikkim Snowfall Red Alert
