Omaxe Group promoter alleges financial mismanagement, files legal petition against CMD

Alleging financial mismanagement in the Omaxe Group, Sunil Goel, the second largest promoter and shareholder of the company, has filed a legal petition against Rohtas Goel, Chairman & Managing Director of Omaxe Ltd for alleged malpractices and financial fraud.

Omaxe Limited was founded in 1987 by brothers Rohtas & Sunil Goel. The real estate development company has footprints in 8 states and 27 cities.

While Rohtas Goel represents largest promoter shareholder group of the company, younger brother Sunil Goel represents second largest promoter shareholder group having 20 per cent shareholding.

The shareholding of the promoter and promoter group is through Guild Builders Private Limited, which holds around 65-70 per cent shares of Omaxe Limited and is a holding company of Omaxe Limited.

On September 17, Sunil Goel and his group had filed oppression and mismanagement Petition before the NCLT Chandigarh in respect of Omaxe Limited as well as for Guild Builders Private Limited.

According to a statement, Sunil Goel has sought for reinstatement as the Director of the Companies, status quo on assets and sought injunction that shares of Omaxe Limited held by Guild Builders should not pledged for taking further loans by Omaxe Limited. The current financial scenario of the Group is not stable, and the profitability dipped despite taking extra loans from various banks and financial service providers, it said.

The statement added that Sunil Goel has written letters to various financial institutions and major shareholders of company informing about the financial mismanagement. In last one year, Omaxe Group has increased its loan exposure from Rs 1,300 crore to Rs 1,800 crore.