Company run by actor Madhoo Shah’s husband in deep financial trouble
By Divyesh Singh and Dharmedra Tiwari
MTZ Polyfilms may be forced to sell its properties to repay investors and banks around Rs 100 crore.
A company run by actor and socialite Madhoo Shah’s husband owes around Rs 100 crore to investors and banks, and it may be forced to sell its properties in Raigad district and Gujarat to repay them, a police inquiry into a cheating complaint against Anand Shah has revealed.
Surat-based Akash Polyfilms, which supplied raw material to MTZ between 2009 and 2013, has filed a complaint of cheating against Anand Shah in the Colaba police station. Pavan Tulsiani, who owns Akash Polyfilms, claims MTZ owes him Rs 2.15 crore, and that the eight cheques issued by Anand Shah during the said period bounced.
Anand Shah said that he was not aware of any police complaint against him. “I have not cheated Tulsiani. The issue is related to an outstanding amount that has to be paid to him,” he told Mirror.
“I am aware of a case under Section 138 of the Negotiable Instruments Act that he has filed and is pending with the metropolitan magistrate’s court. I have no idea about the police complaint he has filed with the Colaba police. The police haven’t contacted me till date.”
According to Tulsiani’s complaint, MTZ made regular payments in the first two years after the companies started doing business. In 2009, MTZ started placing bigger orders. However, the cheques it issued were discredited by banks. Tulsiani claims he then filed a case against Anand Shah and his father in a Surat court in 2011.
The Shahs, according to the police complaint, agreed to sign a memorandum of understanding detailing a schedule of payments. They, however, did not adhere to the schedule and more cheques bounced.
“We have started an investigation following the complaint, but are yet to record Anand Shah’s statement,” said assistant inspector H R Killedar of the Colaba police station. “I will consult my superiors and take further action as per their guidance.”
MTZ first sought help from the Board for Industrial and Financial Reconstruction in 2002. Set up in 1987, the BIFR helps troubled companies revive their business. But BIFR has also become the last refuge for companies trying to keep creditors at bay.
Anand Shah confirmed that MTZ had been under BIFR protection. “We have been under BIFR protection since 2003, and despite being a BIFR company, Tulsiani did business with us and was aware of it. We have winded up our business… but we are looking for options and are waiting for a decision by BIFR,” he said.
“If they allow us, we will repay the investors, financial institutions and banks by selling the company’s assets in Gujarat and a plot at Khalapur. If needed, the Mumbai office will also be sold for revival of the company. If the decision is not in our favour, then the final resort will be of liquidation of the company’s assets”.
MTZ Polyfilms may be forced to sell its properties to repay investors and banks around Rs 100 crore.
A company run by actor and socialite Madhoo Shah’s husband owes around Rs 100 crore to investors and banks, and it may be forced to sell its properties in Raigad district and Gujarat to repay them, a police inquiry into a cheating complaint against Anand Shah has revealed.
Troubled MTZ Polyfilms is currently under the protection of the Board for Industrial and Financial Reconstruction (BIFR), a central government agency that helps struggling companies to revive their business or wind up. MTZ stopped its operations six months ago and its employees have reportedly not been paid for months.
Surat-based Akash Polyfilms, which supplied raw material to MTZ between 2009 and 2013, has filed a complaint of cheating against Anand Shah in the Colaba police station. Pavan Tulsiani, who owns Akash Polyfilms, claims MTZ owes him Rs 2.15 crore, and that the eight cheques issued by Anand Shah during the said period bounced.
Anand Shah said that he was not aware of any police complaint against him. “I have not cheated Tulsiani. The issue is related to an outstanding amount that has to be paid to him,” he told Mirror.
“I am aware of a case under Section 138 of the Negotiable Instruments Act that he has filed and is pending with the metropolitan magistrate’s court. I have no idea about the police complaint he has filed with the Colaba police. The police haven’t contacted me till date.”
According to Tulsiani’s complaint, MTZ made regular payments in the first two years after the companies started doing business. In 2009, MTZ started placing bigger orders. However, the cheques it issued were discredited by banks. Tulsiani claims he then filed a case against Anand Shah and his father in a Surat court in 2011.
The Shahs, according to the police complaint, agreed to sign a memorandum of understanding detailing a schedule of payments. They, however, did not adhere to the schedule and more cheques bounced.
“We have started an investigation following the complaint, but are yet to record Anand Shah’s statement,” said assistant inspector H R Killedar of the Colaba police station. “I will consult my superiors and take further action as per their guidance.”
MTZ first sought help from the Board for Industrial and Financial Reconstruction in 2002. Set up in 1987, the BIFR helps troubled companies revive their business. But BIFR has also become the last refuge for companies trying to keep creditors at bay.
Anand Shah confirmed that MTZ had been under BIFR protection. “We have been under BIFR protection since 2003, and despite being a BIFR company, Tulsiani did business with us and was aware of it. We have winded up our business… but we are looking for options and are waiting for a decision by BIFR,” he said.
“If they allow us, we will repay the investors, financial institutions and banks by selling the company’s assets in Gujarat and a plot at Khalapur. If needed, the Mumbai office will also be sold for revival of the company. If the decision is not in our favour, then the final resort will be of liquidation of the company’s assets”.
