Full text of police interrogation of Gopal Mohan Singh Shekawat released by the police:
INTERROGATION REPORT OF GOPAL MOHAN SINGH SHEKAWAT S/O MOHANSINGH SHEKHAWAT, 47 YEARS, RAJPUT BY CASTE, SURAT, GUJARAT STATE (A-2) (C.M.D OF NMART RETAILS PRIVATE LIMITED) IN CR.NO. 154/2012 U/S 406,420 IPC AND SEC. 4,5 & 6 R/W 3 OF THE PRIZE CHIT AND MONEY CIRCULATION SCHEMES (BANNING) ACT SEC.5 OF THE A.P. PROTECTION OF DEPOSITORS OF FINANCIAL ESTABLISHMENTS ACT, 1999 OF KANDUKUR TOWN POLICE STATION.
1ST DAY
Date : 12-05-2013 at 10 A.M Place : Sub-Divnl. Police Office,
Kandukur.
I am the native of Sikar Rajastan, Purohitjeekidhani, Radhakishanpura, Sikar District, Rajastan State. I have completed SSC in Rajastan State. In the year 1986 I have reached Bombay, Boriville and started working along with my friend Arjuna Kumar Varma who is a building contractor started work up to 1988. My friend had given an opportunity to develop contract works and I have taken my routine expenses from him only. While I was in Mumbai, I have completed graduation B.com through correspondence course. In the year 1988, I had transferred to Bahindar and started labour contracts by residing in Bahindar East until that labour contract was completed upto 1992. I have lost my father in the year 1990. I got love marriage with one Prathibha Shekawat in the year 1991. In the year 1992 I have started my business i.e., export of garments and importing like coils and iron steel as indenting agent from the different companies. In the year 1995 I will start import of computer parts and I have used to purchase the computer parts from Hongkong and used to sold in India. In the year 1997 electronic goods markets is going to down, subsequently import business is going to stop and I have changed my business to iron and steel trading like beam, channels and bars took from the company and sold to the builders and local traders ON commission basis. In the year 1999 myself started business at Dubai intending to purchase and sale some items from Dubai and other countries for trading based business and went to Dubai along with my family i.e., wife for trading business. In the year 2001, I returned to India and started Garment business. But I have not succeeded in the business. In the year 2002 I have changed my family to Surat and started to work in Gujarat by taking sick industry, demolishing the industries and sell the same up to 2005. After 2005 that scrap business market is going down, nobody purchased the scraps. In the year 2006-2007, I have started business i.e., purchase and sale of building to the corporate companies so that I can earn good money. This is not continuous business and I have faced so many problems in that business. Then we have decided to establish continuity of the business and decided to get the knowledge in retail business and started to gain some knowledge. I have started a retail shopping mall business in the year 2008 and bought one company by name New Look multi Trade Private Limited, Surat. Before that Reena Dargar and Vijaya Dargar are directors of the company and promoters also. Then we have took company from them of my two friends i.e., one Chandra Prakash Lakshak and one Mr. Dharmendra Ram Swaroop Anand. The company was registered in Mumbai in the year 2008 and I have changed share holding of the company and changed the directors also. I have entered into company on 2009 by holding authorized capital of Rs. 01,00,000/-. In the year, 2010 I have got Chandra Prakash retired from the company and appointed Deepak Shekawat (my brother) in my company and after some time Deepak Shekawat was retired and put Mohammed Salim Khan as one of the Director by holding some shares and now he is now continuing in the company. New look multi Trade Company name was changed to New look retails Private limited in the year 2010 and Nmart is brand name is a division of New look multi trade Private limited. The New look multi trade company initially established in Mumbai and registered in the Registrar Companies, Mumbai. On 03-06-2009 1st shopping mall was started like a super market at Surat. Nmart scheme was started on 26-01-2010 by consulting Bharat Handifrod who is having knowledge of making soft ware and they will came into contact with Samirdesh PandeHa, I have introduced the scheme with the help of two persons. In that scheme I have introduced a incentive that if a person wants to join in the scheme he would have to pay Rs. 5,500/- and gets broucher, Bond, 48 purchase coupons and two Registration forms will be sent to the member to enroll as a member of Nmart retails Pvt. Limited. In that scheme I have also introduced incentives and Rewards to attract the customers more to develop the business. There are as many as 16,50,000/- customers were joined as members in my company after opening of company till today and we have 287 mall shops and out them 146 are running in throughout India and the remaining are under construction and total Rs. 907 Crores of Rupees was collected from the customers. I have given about 370 crores of rupees as commission to our members and dependent business associates, around 170 crores was given for rewards and around 300 crores of rupees purchase material was given through coupons, around 47 crores of rupees was sanctioned to the customers to attend credit facility. Around 2 lakh members were joined in the company throughout Andhra Pradesh and collected 110 crores of advances from the customers. About 60 crores of rupees was paid to the members as commission amount, Purchase brouchers, rewards. New look airways was established in the year 2011 and one Mandar Barde and Hiren Diwani are the directors of the company, they have took Rs. 01,72,40,000/- loan from Nmart company to purchase helicopter on 17-08-2011 and the money was transferred from Axis Bank, Surat to New Look Airways Private limited, Mumbai. I have also established a company by name and style of Nmart infrastructure, Surat in a building which is situated at Honeypark road, Dazzle Arcade, Surat and the company is looking after the sale, purchase of lands and buildings. I am also the director of the Nmart infrastructure, Surat company and Prathibha shekavath also one of the director of this company and after some time she had retired and now Salim Khan is looking after entire business and finance as per my directions.
2ND DAY
Date : 13-05-2013 at 10 A.M
Today I continued further examination on Gopal Mohan Singh Shekhawat in presence of above Mediators Mediators:- Then I have given the following questionnaire to Shekhawat.
1) Have you enrolled members from the area where there are no malls?
Ans : Yes, after enrolling 500 to 1000, we planned to establish malls.
2) But if the voucher is generated, it is to be renewed within 30 days. How can we except a member living at distant area all over come to mall and purchase. It was not mentioned in agreement that he can used after wards.
Ans : He can utilize the same balance voucher after establishment of mall.
3) It was not mentioned in the agreement that he can use after wards.
Ans : I think it is also there in Agreement.
4) After enrolling members after receipt of Rs. 5,500/- you are going to provide suit lengths worth Rs. 3,000/- to the members.
Ans : Yes.
5) What if member is a woman?
Ans If they accept, we are giving suit length we are planning saris also.
6) What is the purchasing cost of suit length?
Ans : We purchase from company and the cost of suit length is Rs. 1675/- and the other Rs. 300/- is for postal charges and Rs. 100/- for packing and handling charges and the remaining amount is with company.
7) Who is the Franchiser of Nmart retails at Kandukur, Guntur and Vijayawada?
Ans : Mutcheli Umamaheswarao is the Franchiser of Kandukur Nmart retails shop. He had paid Rs. 5,00,000/- to my company and opened a shopping mall in Kandukur. At Vijayawada no Franchiser to Nmart retails shop and Manager State operating head by name Shaffi has been operating the retails shop. At Guntur there is no Franchiser and Manager has been operation and I don’t know the name of the Manager.
8) What is the benefit the franchiser will get after joining as Franchiser of the company?
Ans :The franchiser will get 18% interest till Franchisee is with him and 2% incentives basing on the turn over and his responsibility to maintain the administration of Nmart retail shops.
9) What is number of customers in Kandukur Area and How much money was collected from the customers in Kandukur area?
Ans : There approximate 10,000 members were enrolled as members in Kandukur area and about Rs. 01,10,00,000/- was collected as Advance from the customers. We have giving 42 to 50% commissions.
10) As per the auditor’s report the profit for the year 2010-2011 is Rs. 68,03,577-00 and during the year 2011-2012 the company get profit for Rs. 5.73 crores? Is it true or not?
Ans: Yes.
11) In the auditor’s report, it was shown the amount sales through promotional scheme and other sales. What is meaning of the sales?
Ans : It is suit length and credit for Rs. 1500/- as per my knowledge.
12) What is the total enrollment of members in your company through India?
Ans. 16,50,000 members and collected Rs. 907.50 lakhs Crores.
13) During which period the deposits were collected?
Ans : 31 months from January, 2010 (upto August 2013).
14) What the workable calculation is of provisions that to be supplied to the malls?
Ans: We purchase in wholesale price in average margine of 30-35% between sale and purchase. If a person purchases Rs.1000/- from my shop and the original purchase cost is Rs.700+gift voucher Rs.220/-. Rs. 80/- profit from the members only and the same price of cost will be sold to the other customers.
15) What is the total enrollment of members in Andhra Pradesh?
Ans: 2,00,000 members are joined in the company and collected 110 crores of Rupees.
16) How many shops were opened in Andhra Pradesh?
Ans : 14 shops are running ie., Vijayawada, Visakhapatnam, Kakinada, Thirupathi, Kandukur, Guntur, Hyderabad, Miriyalaguda, Medak and others and 16 are under constructions.
17) You think that the scheme will be maintainable in future, is there any difficulties faced by you. Before launching the scheme, you have to get permission from RBI according to the RBI rules?
Ans : It is not a deposit, recurring deposit, it is that membership enrolled scheme develop my retailed mall chain. As per my knowledge, there is no need to register in RBI.
18) Your scheme is chain link system, you have proposed it as Multi Level marketing, and as per the provision of law this may comes under Prize chit fund money circulation act (Banning 1978)?
Ans : In the year 2003 one notification passed by the Govt. of India, consumer affairs that order copy is available with me. Those company selling in retails goods, materials by way of direct marketing, multilevel marketing. Multi level and direct marketing in MLM (Multi level marketing) that company it will comes into Prize company chit fund act.
19) Where did you have conducted meetings in Andhra Pradesh?
Ans : Myself I have conducted meetings in Hyderabad, Vijayawada, Thirupathi, Guntur, Kadapa, Kakinada, Visakhapatnam etc.
20) Where did the agents will collect the rewards and where they are purchasing?
Ans : Only in Big malls i.e., Vijayawada, Thirupathi, Hyderabad, Visakhapatnam etc.
21) In the auditor’s report it was shown that during the financial year 2010-2011 and 2011-12 Franchiser deposit as Rs. 06,25,84,378/- and Rs. 21,09,12,614-00 total Rs. 27,34,96,992/- respectively? This amount will add in the customers deposit. How my shops are functioning in India?
Ans : No, this amount was not added to customers deposit. Now the company has closed all the shops expect six at Surat, Meeraz of Maharastra, Chikodi of Karnata and Bhopal of Madhyapradesh and Howra of Kalacutta.
22) How you have taken the company from Reena Dargar and how much amount paid to him?
Ans : When a New company would have been started, it may take 6 or 7 months time and I have paid Rs. 50,000/- to Reena Dargar.
23) You have purchased helicopter from the profit of the company and from where it was purchased and the age of the helicopter?
24) Ans : Yes I have purchased the helicopter from the profits in the year 2011 from one Genak owner of Chpper Robinson-III Helicopter.
25) According to the auditor’s report in the year 2011 you have given advance amount for property W/Rs. 01,37,18,826/- to six properties? Did you purchase all these properties or not?
Ans : Yes, Out of 6 properties
(1) I have given advance for shop in Surat i.e., from Ghambhir and paid Rs. 2,77,826/- as an advance but the Bank loan amount with the Goutham Gambhir in that property. Still is pending.
(2) I have given Rs. 56,70,000/- for Kandavilli Flat No. 2405 (House for my residence) at Mumbai from Builder, Butwill of Mumbai and it was completed and it was registered in my name and my wife’s name.
(3) I have given Rs. 25,88,000/- (Behind of Sona Hotel, Surat ) to buy simple apartment for my staff members and it was registered in the name of either Salim Khan or in the name of the company.
(4) I have purchased one Flat from Jayshreeben Mehta at Surat and paid an advance for Rs. 06,85,000/- and it was sold it to another party for 1 lakh profit.
All the properties are purchased from the customers who enrolled in the company.
All the properties are in the name Nmart retails except Item No. 1 is in the name of myself through cheques.
26) According to the auditor’s report in the year 2012 you have given advance amount for property W/Rs. 08,80,10,480/- to Eleven properties? Did you purchase all these properties or not?
Ans : Yes, Out of 11 properties
(1) Advance Ware House at Kuvarda nearby Ankleswar, Surat from the farmers i.e., Chaghan Bhaipatel, Kuvarda : I have given Rs. 02,30,62,00/- as an advance, Part payment is yet to be given to the owner of the land.
(2) East Africa Automotive Pvt., Near ONGC Colony, Surat Survey No. 15 belongs to Surekha Dilip Natwani : I have given Rs. 03,00,00,000/-as an advance. Only purchase contract was done, but the party is having dispute in the court. Hence, it is pending.
(3) I have purchased one Plat from Prasanth Babu, Surat (open land) to an extent of approximately 500 – 1000 yards to a tune of Rs. 89,03,480/- as an advance. The deal was cancelled since they have not given clear clarification.
(4) I have purchased one Disha Mall, Aurangabad from one Dilip Parekh who is owner of the property) and paid Advance Rs. 25,00,000/- (Disha is the area and mall is meant by Nmart shop) and the mall cost is Rs. 01,00,00,000/- as an advance and it is under process.
(5) I have purchased Rainbow Flying Club Pvt. Limited, Surat belongs to Captain Nayum and Bharatsing who are owners of the Rainbow flying club and paid Rs. 10,00,000/- as an advance which is situated near Airport. The deal was cancelled.
(6) I have purchased a Ready shop for establishing a Restaurant by name Swastic House (Ground floor and basement) and Purchased the same to a tune of Rs. 06,00,00,000/- and got registered the same from Mr. Anil Patel and Bharat Singh to an extent of 12000 sq. feet
(7) I have given Rs. 8,00,000/- to Unit Publication advertising agency. I am not remember that one.
(8) I have given Rs. 51,52,000/- as advance to one Surya complex flat but the deal was cancelled as the plot is sold away to another party and thus I have reback my amount from the concerned.
(9) I have given advance Rs. 56,70,000/- to purchase a small Office located in Andheri Mumbai that payment was done from IC IC Bank, Surat and the building is under construction.
All the properties are in the name Nmart retails except Item No. 1 is in the name of myself through cheques.
27) Who is Pratibha Ben Shekhavat?
Ans: My wife.
28) Your wife had taken loan for Rs. 3,46,71,452/- as loan amount? For what purpose?
Ans : To purchase properties in Surat and somewhere?
29) Yourwife had also taken Rs. 18,96,578/- for what purpose?
Ans : I don’t know.
30) You have launched a loyalty bonus of above minimum Rs. 11,000/- after completion of 48 months or above? Is it possible to repay the amount to all customers after completion of 48 months?
Ans : Yes, it is possible. I have make one agreement between customer and company with conditions that every customer has purchase of Rs. 72,000/-. Then they are liable to take the Loyalty bonus.
31) How it is possible?
Ans : Because if I have sold my goods for Rs. 72,000/- to any customer then my profit is about 35%.
32) What are the value of properties you are owning?
Ans : About 80 to 90 crores.
33) Is the fast growth company was possible due to obtain deposits from customers and investing the same in the business?
Ans :Yes.
34) From Kandukur who are beneficiaries of your scheme and also who took active part in joining New customers?
Ans : 1) Kareti Venkateswarlu 2) Challa Srinivas 3) M. Umamaheswarao.
3RD DAY
Date : 14-05-2013
My advocate at Bombay is Ashok Sarovgi. After getting transit bail there, the advocate misled me. He asked me not go to court to appear. But he could not get any bail from court. After wards I stayed along with my family at Bombay in my flat – 2405, Vishnu Shivam apartment, Tagoore Village, Kandivalli East , Bombay for about 1 ½ month. I went to Rajasthan and stayed in Jaipur in my friend Sunil Bhatwara’s farm house. It is situated at Trunk road. My friend is a diamond merchant. During my stay at Jaipur my wife, children, mother, younger brother were with me. I stayed there for 2 to 3 months and after wards came back to Surat for getting treatment to my wife.
In some cases I could get bail, but in all the cases of Prakasam district all bails were cancelled. I fed up with my Bombay advocate. To give moral support to my wife I decided to stay back at Surat. I also asked my staff to continue malls without scheme because scheme is not permitted by law as it is nothing but money circulation.
The editor Manoj Mistry of Gujarat Guardian , news daily is my friend. I also gave ads to that paper. About 20 lakhs amount was paid to that paper. At the time of cricket matches for advertisement, I arranged 2 to 3 ad boards twice in ground. For that he paid 2 to 3 lakhs for each board to Rajesh Bai Desai of Simphony ad agency, Surat.
N Mart marketing and enrolment business started in 2010 January. Before 2010 the total worth of my property was about 25 cores. Now it would be about 80 to 90 cores. All this I got through N Mart Business.