Manpasand Beverages Fraud Still Unfolding
Created on 22 Oct 2019
Wraps up in 2 Min
Read by 4.1k people
Updated on 12 Sep 2022
Manpasand Beverages has logged the limelight this year for all the wrong reasons. From the arrest of its Managing Director and its Chief Financial Officer for GST fraud in May to the recent allegations of a hostile takeover by Finquest Finance, it has seen all.
The shares of the company which had soared above 100 rupees at one time are now struggling at around Rs. 7 per share. Let us see how one of the most promising beverage firms has collapsed due to mismanagement by its owners.
GST Tax fraud and arrest of Managing Director
In May 2019, the Managing Director of Manpasand Beverages Ltd, Abhishek Singh, and its Chief Financial Officer Paresh Thakkar were arrested by the Income Tax department for the GST fraud of several crores.
Manpasand Beverages had created several fake units to carry out circular transactions with its real units through which it cheated Input Tax Credit GST of about 40 crores. Because of this issue, several of its directors who mentioned that they were not aware of this issue resigned from their posts.
Finquest’s take over Issue
The CEO of Manprasand Beverages Ltd, Dhirendra Singh gave a complaint against Bharat Patel, Chief Mentor of Finquest Finance, that Finquest was trying to take over the company by hostile means.
Manpasand Beverages had entered into an agreement with Finquest Finance to get a loan of 100 crores. Based on this agreement, Finquest was supposed to pay the amount in 4 installments of 25 crores each.
Patel said that they released 12 crores to pay the salary of employees as the wages were not paid for some months. They didn't go on with the full payment as they learned about substantial irregularities in the financial reports released by Manpasand Beverages.
Manpasand had claimed a business turnover of 1078 crores with a profit of about 69 crores. But Finquest came to know that their turnover is only 144 crores.
Till the advent of these issues, the business of Manpasand Beverages was excellent. Manpasand Beverages was started in the year 1998. They mostly targeted tier-2 and tier-3 cities where their sales were impressive. They sold good quality beverages at a lower price. Their products like Mango Sip and Fruits Up were selling in huge numbers till 2016.
The bottom line
All the irregularities at Manpasand Beverages are coming to light one by one. With its share price falling more than 90%, it’s now up to the authorities to unearth the irregularities connected to it. With proper management, Manpasand can again reach the position it was at a few years back.
How was this article?
Like, comment or share.