Bankim Brahmbhatt, founder of Broadband Telecom and Bridgevoice, has had his assets frozen in India and Singapore after allegedly orchestrating a "breathtaking and protracted fraud" of $500mn. The bankrupt companies, now under restructuring supervision, obtained freezing orders after Brahmbhatt reportedly fled the US to India and transferred company shares to associates. Singapore’s High Court granted a $243mn freezing order, while Gujarat’s High Court approved a worldwide injunction.
Court filings allege the diverted funds were sent to entities in Mauritius and the UAE. Lenders included HPS Investment Partners, which accused Brahmbhatt of fabricating receivables documents. Brahmbhatt has denied the allegations.
The legal actions highlight the challenges private credit firms face in recovering losses from alleged asset-backed lending frauds.
Source: Financial Times Companies · Summarized by HeadlinesBriefing