Records in the Pandora Papers reveal that a Kolkata-based businessman, who has been slapped with the biggest ever Foreign Exchange Management Act (FEMA) notice of Rs 7,220 crore, opened offshore firms through Trident Trust Company.
According to a report from the Indian Express, Nilesh Parekh, promoter of one of the top wilful defaulters, Shree Ganesh Jewellery House (I) Ltd, became the sole director of Chicory Holdings Limited in the BVI in December 2011 to hold assets primarily in the United Arab Emirates.
Chicory Holdings was set up in October 2010 with UAE-based Trinity Group Partners as administrator of the company.
According to the BVI company formation document, Parekh owns 50,000 shares of $1.5 each and the purpose of the firm is to "register a subsidiary, branch, representative office, limited liability company, free zone company" with bank accounts in the UAE.
A resolution approved by the Chicory Holdings said, "The company will invest in and hold assets in UAE or anywhere else in the world and hereby authorizes Mr Nilesh Parekh signing solely to represent the company and sign on behalf of the company on any and all documentation related to the investment, holding and sale/transfer of assets."
Through an Investigation by the Indian Express, it has been found out that while opening the offshore firm, Parekh listed his house address at Manikanchan building in Ballygunj, Kolkata. At this address, a person who identified himself as the domestic help of Parekh said he had no knowledge about Nilesh Parekh's whereabouts.
Parekh, his brothers Kamlesh and Umesh, along with the Indian firm, Shree Ganesh Jewellery, are accused of defrauding a consortium of 25 Indian banks of Rs 2672 crore and diverting export proceeds of over Rs 7000 crore.
Shree Ganesh was declared a wilful defaulter by banks as early as 2015. The Enforcement Directorate (ED) is probing two separate cases against Parekh.
