The Delhi Police Economic Offences Wing has registered a First Information Report against real estate firms Experion Developers and Experion Capital following allegations of fraud in a 630 crore rupee land deal in Gurugram. The investigation centers on a prime land parcel in Sector 62, where the companies are accused of misleading the insolvency system to acquire assets at a significantly reduced value. This legal escalation follows a complaint by the Enforcement Directorate and comes after several months of scrutiny triggered by a Zee News report flagging irregularities in the transaction.
Mechanism of the Alleged Loan Manipulation
At the heart of the probe is Dignity Buildcon Private Limited, a real estate entity that had previously secured loans exceeding 992 crore rupees from six financial institutions. These creditors included Standard Chartered Bank and various entities linked to Blackstone. According to the Enforcement Directorate, Experion Developers allegedly attempted to acquire the assets of Dignity Buildcon for approximately 332 crore rupees, a figure that investigators suggests is far below the actual value. The probe alleges that the Experion group adopted an indirect route to take over the company after finding they could not do so directly. It is further claimed that court proceedings were deliberately prolonged while the group worked to influence creditor voting.
Strategies for Controlling the Committee of Creditors
The investigation found that Experion Capital allegedly purchased portions of distressed loans specifically to gain control within the Committee of Creditors, which is the body responsible for determining the outcome of insolvency proceedings. Records indicate that Standard Chartered Bank’s exposure of over 494 crore rupees was acquired for 160 crore rupees, which granted the group nearly 50 percent of the voting rights. Additionally, a loan of approximately 58 crore rupees linked to Blackstone was reportedly purchased for about 25 crore rupees, securing a further 10 percent of the voting power. These transactions allegedly allowed the group to act as both the buyer and the decision-maker in the insolvency process, a structure that investigators say would constitute a violation of insolvency laws if proven.
Allegations of Coercion and Regulatory Scrutiny
A significant revelation in the ongoing probe concerns the role of Alchemist ARC, which held approximately 35 percent of the voting rights in the creditor committee. Statements recorded by the Enforcement Directorate include an allegation from a company representative that pressure was exerted to force a vote in favor of the Experion Capital resolution plan. Alchemist ARC is promoted by corporate lawyer Alok Dhir, whose role is now under intense scrutiny. Investigators have noted that similar patterns of acquiring distressed loans through related entities have emerged in previous cases. The authorities are currently examining whether the independence of the Committee of Creditors was compromised to facilitate the acquisition of the Gurugram land parcel.
