Credit Suisse Group sued REI Agro Ltd. in Singapore claiming the Indian basmati rice producer and 16 related companies conspired to get loans for non-existent trades of the staple.
REI Agro founders Sandip and Sanjay Jhunjhunwala used a web of sham rice-trading companies in Singapore and Hong Kong to support a 2012 US$115.5 million (S$154.50 million) loan agreement by REI Agro’s Dubai-based Ammalay Commoditiess JLT, according to a lawsuit in the Singapore High Court.
Credit Suisse, leading a group of lenders who are seeking at least US$80 million in damages, said in the October suit that the loan agreement was breached when Ammalay failed to provide audited accounts and defaulted on a US$20 million payment. Sanjay Jhunjhunwala said in November court filings that trades by his two companies being sued were genuine and denied involvement in any fraud. The next hearing is scheduled for Jan. 26.
New Delhi-based REI Agro, which guaranteed the loan, and Ammalay haven’t filed their defenses and didn’t respond to e- mails seeking comment. Eugene Thuraisingam and Muralli Rajaram, lawyers for eight other companies being sued, declined to comment, as did Credit Suisse.
Credits: The Straits Times