Tax Evasion of +40 Crores Detected in Manpasand Beverage Limited

Manpasand Beverage Limited created Fake Units and Bogus Paper Firm : Securities and Exchange Board of India SEBI detected Tax Evasion of +40 Crores after 5 years of Intense Investigation. 

Tax evasion of +40 crores detected in Manpasand beverage scam. During the investigation of Securities and Exchange Board of India, it was revealed that Manpasand Beverage Limited has fake units in the name of MBL which has been continuously committing GST Fraud and Misleading in Financial Statements for so Many Years. 

Vadodara Based Manpasand Beverage Company has become the center of controversy for many years. But the company's problems became worse when Deloitte resigned from the post of auditor in 2018.

Follow our WhatsApp Channel .

High Penalty on the Directors and Top Officers 

After such a Huge fraud, mis-information and tax evasion exceeding Rs 40 Crores, Market Regulatory Securities and Exchange Board SEBI has imposed Massive fine on almost all the Directors and top Officials of Manpasand Beverage Company Limited and also Offenders were expelled from the market for period of 3 years.

Penalty of 74 lac — Must Paid Within Just 45 Days 

SEBI imposed a penalty of Rs 74 lakh on Directors of MBL for Misleading and Mis-reporting in financial statements. A penalty of Rs 17 lakh each was imposed on Manpasand Beverage Company's Promoter and Chairman Managing Director, Dhirendra Singh, Promoter and Executive Director, Abhishek Singh, and Chief Financial Officer Paresh Thakkar. 

SEBI also stated in its 55 page filing that all the three are Ordered to pay this penalty in just 45 days. In its order, SEBI has restricted Dhirendra Singh, Paresh Thakkar and Abhishek Singh from the market for 5 years. According to which, the three are restricted to have post of Director or Personnel in any SEBI Listed Public Company or any Registered Intermediary Company is restricted for 5 years.

Apart from this, a fine of Rs 2 lakh each has been imposed on Milind Babar and Chirag Doshi, the Former Independent Directors of Manpasand Beverages Limited. SEBI has also imposed a fine of Rs 1 lakh each on Current Independent Director Nitish Nobar and Bharti Naik. Naik is the Non-Executive Director of MBL. 

"Essentially everything was fake Amit Mantri..." said Amit Mantri 

Recently on 2 May Amit Mantri, the Fund Manager of PMS wrote on Twitter his Twitter Handle that, "SEBI's order on the Manpasand scam. Essentially everything was fake. The company existed only on the stock market and not in the real world. Unfortunately, this is also true of a large number of smidcap stocks and majority SME stocks in this market." 

Till Yet the Post Received 136 Thousand Views, 54 Likes and 133 Repost. 

SEBI's order on the Manpasand scam. Essentially everything was fake. The company existed only on the stock market and not in the real world. Unfortunately, this is also true of a large number of smidcap stocks and majority SME stocks in this market. https://t.co/bGKC5n0oKC

— Amit Mantri (@amitmantri) May 2, 2024

Mis-reporting in Financial Statements 

Apart from this, SEBI also stated in its 55 page file that major deficiencies were found in the Internal Regulations of MBL. Even the Company had mentioned wrong figures in its filing in the Financial Statement of Financial Year 2016-17 and Financial Year 2017-18. SEBI also mentioned that manipulation was done at many levels in the financial statements of the financial year 2019-20. 

SEBI Experienced and Whole Time Member, Ashwani Bhatia said....

Securities and Exchange Board of India SEBI's Whole Time Member Ashwani Bhatia Stated, "The financial statements of MBL for 2018-19 and 2019-20 were manipulated and the figures contained therein were significantly mis-stated. This led to publication of manipulated, untrue and misleading financial results of the company during 2018-19 and 2019-20, which presented a false picture of the financial health of the company to investors,". 

Manpasand Beverage LTD. is in Center of Controversy Since 2019 

SEBI said in its statement that fraud in Manpasand Beverage Limited has been going on since 2016, as soon as SEBI came into its notice in 2019, MBL's Chief Auditor Bipin Rathod got a glimpse of this scam. SEBI has been investigating this matter since September 2019, then after the end of the financial year 2020, SEBI appointed Choksi and Choksi LLP to conduct a forensic audit for the financial year 2019-20, as a result in the audit SEBI detected misleading in financial statements.

Follow our Twitter Channel.

The History of Manpasand Beverage Company 

Manpasand Beverage Company was founded in 1998 by Dhirendra Singh. While the Competitors of Manpasand target the big cities of India, Manpasand Company targets Tier-2 and Tier-3 cities. In 2018, the company distributed its product in 6 lakh outlets across India. 

Manpasand Beverages currently has three plants located in Vadodara, Varanasi and Sri City. The company was preparing to set up its fourth plant, but after this big scam, the company has become the center of controversy - along with this, strict action is being taken against the Company and its Board of Directors. 

Investigation Revealed : 38 Bogus Firm Paper Firm 

SEBI investigation revealed that MBL had created 38 bogus paper firms to siphon off its profits. And through these fake paper firms, Manpasand Beverage Company made its inward and outward transactions. The figures of transactions will  surely Shock you, as per 55 page filing of SEBI, Inward and Outward Transaction is of approximately rs 188.47 crore and rs 691.30 Crore, Respectively.

ITC for Fake Invoice of Payment 

Further, to avoid the tax liability, the Company Use Input Tax Credite System ITC and by which they issue 

fake invoices for payment.

After this huge fraud was detected, Company Director Abhishek Singh and 2 More Top Officials were allegedly arrested in the case of GST tax evasion of +40 Crore.

Experts on this Tax Evasion Scam 

Sakkeena P V, SEBI's Adjudicating Officer in the order said, "As the company itself has accepted that there was timing mismatch in recording the entries for QIP utilisation in the statements. I do not find merit in the contention of Dhirendra and Abhishek Singh in this regard. Therefore, I note that the company has violated LODR rules and Securities Contracts (Regulations) act (SCRA),".

Read More Stories Here

Click Here — The Shocking Price of Pani Puri In Chhatrapati Shivaji Terminus Sparked Debate on Platform X. Know the Captivating Feedback of Users. 

Click Here — Income Tax Filing 2024 : Feeling Hesitated, Know How You Can Easily File ITR in 2024. 

Click Here — Latest Update : After Delhi 41 Ahmedabad Schools Received Threatening Emails of Bomb Blast 

Click Here : Breaking News: OpenAI Co-Founder Ilya Sutskever Announces Departure,