There is a lot Sanjay Jain has to answer to his investors, employees and distributors (they paid upfront for consignments that never came) for. Like, how the travel bills of he and his family to USA and Israel, and farmhouses in Delhi and flats in Mumbai cropped up as business development expenses in the company account books.
This Distributor Wants His Money Back
| Sanjay Jain owes nearly Rs 40 lakh to Sunil Yadav, a Delhi-based distributor. Yadav paid up Rs 25 lakh but RBL supplied him only two truckloads of beer. |
Later, when Yadav asked Sanjay Jain to return rest of the money, Jain gave him six cheques amounting to Rs 25.85 lakh. Two bounced, and Jain requested Yadav not to deposit the others.
Meanwhile, the cheques expired. Jain promised to pay up later but defaulted again and Yadav filed a case. The promoter was arrested in September 2001 for few hours but was immediately bailed out.
Jain issued Yadav fresh cheques amounting to Rs 18 lakh alongwith a three-year-old Honda City and Rs 1 lakh in cash. The cheques bounced again. Sanjay went to jail in December 2002 for four-five days.
Today Yadav is fighting 13 cases against Jain and his wife Nisha Narain Jain, also a director in the company.
S K Lahiri, the companys CEO between February 1995 to August 1996, says RBL did not pay provident fund to its over 100-odd employees amounting to nearly Rs 15 lakh. In fact, for a long time, the management didnt open an EPF account but kept on deducting it from employees salary.
Money raised from investors: Rs 136 crore
The main gate of the plant is locked and sealed by the Bank of Rajasthan which took possession of the assets last year. A section of the property has been sold off and the new owners have begun construction.