In 2015, Mr. Deepak Kothari invested ₹60.4 crore in Best Deal TV Pvt. Ltd., an equity-based investment duly supported by a Share Purchase Agreement and valuation conducted by his own company’s Chartered Accountant. This was never a loan. By its very nature, equity investment carries ownership risks and rewards, unlike creditor rights. This investment was even made public and available on all online pink page portals where the investment was announced.
Link: https://www.business-standard.com/amp/article/companies/best-deal-tv-to-raise-rs-100-cr-115051901327_1.html
Despite this, Mr. Kothari has neither filed any claim before the NCLT nor raised objections during the liquidation process. The company went into NCLT due to the adverse effects of demonetisation, which critically impacted our 99% Cash-on-Delivery business model. Unfortunately, Best Deal TV Pvt. Ltd. never moved beyond the start-up phase and had to close operations nine years ago, leading to substantial personal losses of over ₹50 crore for me.
It is important to note that Mr. Udai Kothari, son of Mr. Deepak Kothari, was an active Director of the company, attended all Board and AGM meetings (as reflected in minute books), and was fully aware of the company’s affairs.
Additionally, Shilpa and I invested ₹50 crore, which was transparently allocated towards share capital, bank loan repayment, and legal proceedings. Furthermore, UY Industries Ltd. publicly classified Best Deal TV Pvt. Ltd. as an “associate” in its financial statements, demonstrating that this was always treated as an equity investment. This is also evident in contemporaneous media reports, such as Business Standard’s coverage.
Most importantly, during the preliminary inquiry by the Economic Offences Wing (EOW), we have submitted all necessary documents, working papers, supporting evidence, and financial statements. These records clearly establish the equity nature of Mr. Kothari’s investment and the transparent manner in which the company’s finances were conducted. The EOW, after reviewing these submissions, has not raised a single objection to the documents filed.
I must emphasize that equity investments cannot be demanded back after liquidation. To now claim otherwise is a mockery of the system and misuse of influence. For the past six years, I have been subjected to relentless harassment through misuse of the investors government contacts, despite having conducted all my business dealings transparently and in good faith.
I take pride in the fact that Best Deal TV employed over 500 people directly and indirectly during its operation. While the company’s closure was a significant setback, I have always conducted my business worldwide with integrity and without controversy. It deeply pains me that all the “drama” seems to follow only in the country I call home.
Raj Kundra