Prosecuted, fined, rejected & a Rs 36,000 cr deal

B.S. NAGARAJ writes from New Delhi: “We are pure gold, 24-carat gold,” declared Gali Janardhana Reddy last week with the same innocence with which he is profiled on the Bramhani Industries Limited’s website.

In the first of eight paragraphs, Janardhana, we are told, is the founder-promoter of M/s Ennoble Group.

“At an (sic) age of 21, he floated a RNBC – a residuary non banking financial company called M/s Ennoble India Savings and Investment Co., Ltd., Bellary,” says the website.

‘Ennoble’ did you hear?

Visit www.watchoutinvestors.com for more on the most (in)famous of the Reddys and Ennoble (ah, what a name!).

Now, this website is a watchdog promoted by the investor education and protection fund of the ministry of corporate affairs of the government of India. It alerts investors with information about individuals and entities that they should be aware, or rather beware, of.

Janardhana scores a hat-trick here, figuring thrice against each of the three Ennoble group companies, the other two being Ennoble Leasing (India) Limited and Ennoble Hotels International Limited.

He and his companies, we are warned, have been prosecuted, fined and applications by his outfits for conducting business have been rejected by regulatory authorities like the Reserve Bank of India and the Ministry of Company Affairs.

B.V. Srinivasa Reddy, managing director of Bramhani’s sister concern Obulapuram Mining Corporation (OMC), keeps him company.

The regulators charged them with “default in filing of copies of balance sheet and annual returns, failure to comply with RBI regulations,” and so on. They were prosecuted and ordered to pay monetary fines, and one of the companies was denied permission to carry on the business of leasing.

Investors are warned by the website that Ennoble India Savings’ application for registration as an NBFC was rejected on 31 October 2007. Obviously, the Karnataka government of B.S. Yediyurappa couldn’t care less—or why else should it sign an MoU for a proposed steel plant worth Rs 36,000 crore or some such obscene figure at that mega global investors meet in June?

Big deal, Yeddy and the Reddys seem to be saying. There are companies with worse histories, and aren’t governments doing business with them?

Sure, OMC and Bramhani are high up there in that list.

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