Due Diligence

Association of Person, named in Criminal case, with Multiple Companies A Red-flag

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Heckyl’s Risk Analytics System (RAS) is the first of its kind innovative application that provides early warning signals through analysis of traditional and alternative datasets for identifying distress sectors and companies ahead of time.

RAS is also a singular repository to carry out deeper levels of due diligence for compliance and related party risk assessment. Our application allows screening of KMPs, Directors, Companies, and Institutions by performing checks against:

  1. Litigation
  2. Regulatory Complaints
  3. Blacklists/ Defaulter List
  4. Sanctions by Global Authorities
  5. Politically Exposed People
  6. Adverse Media

Recently the Enforcement Directorate (ED) has filed a criminal case under the Prevention of Money Laundering Act (PMLA) against cardiologist Dr Naresh Trehan and others in connection with allotment of land for the Medanta Hospital in Gurgaon.

RAS has captured the adverse media coverage around Dr Trehan, who is director on the board of Global Health Patliputra Pvt Ltd.

Image 1: News Screen

A further deep-dive into RAS’s related parties dataset has revealed that Dr Trehan is/ was director on the boards of 27 companies. Our related parties screen captures both the active and inactive relationship of directors with the companies.

The companies on which Dr Trehan is/ was associated with are Medanta Holdings Pvt Ltd, Escorts Heart and Super Speciality Ltd, Jubilant Life Sciences Ltd, Punj Lloyd Ltd, Varun Beverages Ltd, Fresenius Kabi Oncology Ltd, Shama Estates Pvt Ltd and 20 other companies (highlighted in the below screen).

Image 2: Related Parties Screen

In our view, association of a person, who was named in a criminal case, with multiple companies is a potential red-flag for the lenders.

How FiND could have helped Air Asia to zero in on HNR Trading

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Heckyl’s FiND offers a singular repository to carry out deeper levels of due diligence for compliance risk assessment. Our unique alternative data platform allows screening of KMPs, Directors, Companies, and Institutions from compliance perspective by performing a check against:  

Due Diligence - Alerts

Recently, the Central Bureau of Investigation (CBI) summoned AirAsia India head R Venkataramanan to join ongoing probe on July 3 over AirAsia money laundering case. The Enforcement Directorate (ED) is also probing an alleged violation of the Foreign Exchange Management Act involving Air Asia, which is related to the transactions of over Rs. 12 crore with Singapore-based HNR Trading Pte Ltd.

Earlier, the CBI has also named HNR Trading and its director Rajendra Dubey in the Air Asia case as alleged lobbyists who used their influence to secure a permit for international scheduled air transport services. It is also being alleged that owner of the firm, Rajendra Dubey, had a suspected association with an international terrorist Hamid Reza Malakotipour. In June 2014, the US Department of Treasury added Malakotipour in OFAC list as a “Specially Designated Global Terrorist”.

Here, we present a use case of how FiND could have help Air Asia to perform due diligence on HNR Trading Pte Ltd in below.    Read the rest of this entry »