Tragic end to Tata Finance ex-chief, who was once tipped to succeed Ratan Tata
Back in the 1990s, Dilip Pendse was considered one of Ratan Tata’s closest aides, especially on financial matters.
From growing Tata Finance to one of the largest non-banking financial services company to being known as a financial wizard, Pendse’s rise in the group over 22-years catapulted him to such heights that he was considered a successor to Ratan.
But things started going wrong when allegations of financial fraud and cheating were levelled against him. His suicide on Wednesday is a tragic release from everything that went wrong for him over the past 15 years.
According old-time stock brokers, Pendse’s transgressions came to light in 2001, when Mumbai’s stock market was seen as a den of hustlers and fixers. At the heart of the matter was the functioning of TFL subsidiary Niskalp Investment & Trading Company. Between March 2000 and March 2001, TFL’s exposure to Niskalp increased from ₹220 crore to nearly ₹500 crore, mostly as investments in junk stocks that crashed during the dot-com bust. Market regulator SEBI asked TFL to clarify allegations of ₹70-crore loss by Niskalp.
The mastermind
Pendse was seen as the mastermind behind the financial irregularities. An audit firm was appointed; it initially gave a clean chit to Tata Finance, but later withdrew the report after firing the team leader who had conducted the audit. Tata Sons’ own review found irregularities ranging from insider trading to false paperwork within Tata Finance.
In 2003, Pendse was arrested by Delhi Police on charges of cheating, forgery, criminal conspiracy and misappropriation of funds.
In 2014, SEBI banned Pendse from the capital markets for two years for his role in carrying out illegal trades in the “carry forward” segment of the BSE and the NSE in 2001.
SEBI said these transactions were conducted in complicity with two brokers — Jhunjhunwala Stockbrokers Pvt Ltd and Pratik Stock Vision — and on behalf of Inshaallah Investments, in which Niskalp had a vital interest. Pendse challenged a SEBI order before the appellate tribunal.
In 2016, SEBI again barred Pendse and three other entities from the capital market for three years for the 2001 manipulation case.
Former Tata executives said Pendse’s end was as tragic as was his dramatic rise.
[“Source-thehindubusinessline.”]
