R Gowrishanker vs Krishnamurty Chandra on 20 February, 2019

R.Gowrishanker                                         .. Petitioner

                              Vs.

                      1.Krishnamurty Chandra
                        S/o.V.Krishnamurthy,
                        9/1, Shanti Niketan,
                        New Delhi-110 021

                          Also having office at
                          Real Time Technical Services Pvt. Ltd.,
                          3rd Floor, 39 Lavanya Towers,
                          4th Main Road, 8th Cross,
                          Malleshwaram,
                          Bangalore-560 055

Epicentre of the dispute between petitioner and first defendant is an agreement captioned 'Memorandum of Agreement' dated 01.01.2013 wherein first respondent agreed to pay the petitioner a principal sum of Rs.6,52,25,671

One part is by way of cheques for a sum of Rs.3,22,25,671/- and the balance, i.e., the other part is by way of shares in a company which goes by the name 'Secure Earth Ltd.'

monies that were advanced by claimant were only for the benefit of companies which go by names Mascon Global Ltd., Madras Finvest Pvt. Ltd. and Synerfin Factors Pvt. Ltd. were all set up as defence.

petitioner came to know that second respondent sole arbitrator had joined the Board of three companies as a Director: 'Real Time Technical Services' ('RTTS' for brevity), 'C2C Innovations Pvt. Ltd.' ('C2C' for brevity) and 'Q4 Software Pvt. Ltd.'

https://indiankanoon.org/doc/173834817/

Mascon Global creditors become shareholders

Under the new RBI guidelines, commercial banks and financial institutions can takeover defaulting companies by converting their debt into equity (SDR = Strategic Debt Restructuring). Recently companies like Electrosteel Steels, Jyoti Structures Ltd, Monnet Ispat, and Visa Steel went through this process. Other companies like IVRCL and Lanco Infratech are said to be going through the SDR route. All of these companies are from industries that require heavy capital expenditure for a turnaround: steel, power, and infrastructure.

Turnaround and recovery of loans is much easier in the IT industry. In a company like Mascon Global, which has quietly hived-off profit making subsidiaries, that recovery should be still easier if the promoters are cooperative.

As of now, Mascon Global creditors have filed winding-up petitions at the Madras High Court. The registered office of Mascon Global in that city is now occupied by Quadrant 4. The company only exists on paper, and all their assets, personnel, money, and intellectual property has been fraudulently transferred to new companies. So these winding-up petitions have no chance of recovering the amounts due.

The list of Mascon Global creditors:

1. SBI Global Factors in the amount 13,27,00,000 (13 crore and 27 lakh)
2. State Bank of India in the amount 131,19,60,942 (131 crore and 19 lakh)
3. ICICI Bank in the amount 56,28,97,500 (56 crore and 28 lakh)
4. Deutsche Trustee Company in the amount $64 million
5. L&T Finance in the amount 70,15,64,124 (70 crore and 15 lakh)
6. Oriental Bank of Commerce in the amount 15 crore

Corrections and additions to this list are welcome.

As against these amounts there are the unaccounted funds hidden/transferred by Mascon Global from:

1. the sale of MGL Solutions to Quadrant 4 for $19 million
2. 4 million shares of Quadrant 4 Systems Corp listed on the NASDAQ, which legally belong to Mascon Global Ltd
3. the transfer of Mascon Global assets to BT System and Service, which became Secure Earth by acquiring the listed entity Globsyn Infotech
4. the funds in BT System and Service subsidiaries: RTTS and Gee Softech, which were holding Mascon Global properties in their name
5. the fraudulent transfer of Mascon Life Sciences assets to Secure Earth Health And Life Technologies Limited and Secure Earth Advanced Systems Private Limited
6. unaccounted money from the aborted acquisitions of SDG Corporation and Comtel Holdings Singapore
7. the fraudulent transfer of Mascon Global subsidiary Ebusinessware (MGL FInance) into MediaAgility, AdGlobal360, and Ondemand Agility
8. the fraudulent transfer of Mascon Global American subsidiaries into iDEA Solutions Inc.
9. unaccounted money from the sale of iDEA Solutions Inc. to Xoriant corporation
10. funds/property of InfoSage Systems which was merged into Mascon Global in 2008 but now functions independently

The only way for creditors to get their hands on these funds and companies is to become owners of Mascon Global by converting their debt to equity.

Hari Chandra, as director of Secure Earth, shows his address at 92 New Cavendish Street in London, England, on the Ministry of Corporate Affairs website. He has been sued by Calliope Capital Corporation (Laurus Master Fund) which used to be a US creditor of Mascon Global. From PDFServer, we learn:

On November 10, 2014, this Court entered judgment in favor of Plaintiff and Judgment-Creditor Calliope Capital Corporation ("Calliope" or "Plaintiff") and against Defendant and Judgment-Debtor Hari Chandra ("Chandra" or "Defendant") in the amount of $1,383,549.93.

Calliope seeks the Court's assistance in obtaining post-judgment discovery relating to Chandra's assets. Since judgment was entered, Chandra has simply refused to comply with his discovery obligations. Chandra has failed to appear for a noticed deposition on three separate occasions.

Another case, Investec Bank vs Opalgem Investments Corp, involves K Chandra and his wife Lakshmi Chandra:

In March 2008, plaintiff extended to defendant Opalgem credit in the amount of $32 million, secured by a mortgage on Chandra's Manhattan condominium unit at 2000 Broadway. The loan is guaranteed by Chandra and two entities he owns and/or controls, Elite International Finance Limited and Rockmans Investment Incorporated.

Opalgem defaulted on the underlying obligation, and in December 2010, plaintiff commenced foreclosure proceedings on the unit, naming Chandra, Elite, and Rockmans as liable. On March 4, 2014, a judgment was entered in plaintiff's favor against the subpoenaed parties in the sum of $14,138,452.65, plus interest.

The address for Rockmans Investment Incorporated is shown as 26 Westway, Greenwich, Connecticut, which is also the address given by K Chandra to the Ministry of Corporate Affairs as a director of Secure Earth Advanced Systems Private Limited.

If creditors in India wish to avoid such tactics they need to takeover Mascon Global by converting debt to equity. There is some value to be had in the subsidiaries which are operating independently.

iDEA Solutions Inc sold

The fraudulent act of merging Mascon Global's American subsidiaries into a big new company, and registering it as an independent corporation, was designed to escape the grasp of shareholders and creditors. Consider all the fixed and financial assets, all the personnel, properties, and all the intellectual property that went into iDEA Solutions Inc.

Since iDEA Solutions occupied the offices of MGL Americas, it can be assumed that this Mascon Global subsidiary as well as Mascon Life Sciences, were also fraudulently merged into this new company.

Then on October 10, 2013, Xoriant Corporation announced the acquisition of iDEA Solutions Inc. Girish Gaitonde, President and CEO of Xoriant Corporation, said: "This acquisition will significantly expand Xoriant's offerings and enable us to serve our financial services, pharmaceutical, and automotive customers with an impressive range of solutions." "We are excited about the opportunities ahead as we expand our footprint with Xoriant," said JP Vejendla, the Co-Founder and CEO of iDEA Solutions.

How much this big entity was sold for is unknown, but the only way to get information on how much and to whom the money was paid, is by Mascon Global creditors becoming shareholders and taking over the company.

The Internal Revenue Service (IRS) raised questions on this sale, since both companies were registered in American states: Quoted from Case text: Xoriant Corp vs United States

On April 7, 2014, Revenue Officer S. McKnight issued two administrative summonses from the Internal Revenue Service's office in Edison, New Jersey - one to Petitioner Xoriant Corporation and one to Petitioner Idea Solutions Inc. in the course of an investigation of Versatech Consulting, Inc. Both summonses required Xoriant and Idea Solutions to produce documents related to the companies' interactions with Versatech.

In response, Xoriant and Idea Solutions initiated legal actions by filing nearly identical Petitions to Quash the Summonses......Because Xoriant and Idea Solutions have not sufficiently demonstrated a basis for subject matter jurisdiction over these proceedings, the Government's motions will be granted.

Updates on this IRS case are awaited but it shows that the merger of Mascon Global's American subsidiaries into Idea Solutions Inc. was not above board.

InfoSage Systems is another Mascon Global subsidiary

iDEA Solutions was formed by merging Ebusinessware, Jass & Associates, Versatech, and MGL Americas. But some portions of these Mascon Global subsidiaries were preserved and hived off into new companies: Ebusinessware became MediaAgility.

In the same way, InfoSage Systems, a subsidiary of Jass & Associates, with offices in America and India, continues to function as an independent company. Along with the parent Jass, InfoSage was merged with Mascon Global in 2008. But later it was separated to function independently, after Mascon Global got into financial trouble.

Even now the Mascon Global office at 6-3-663/B, 2ND Floor, MRL House, Panjagutta, Hyderabad, is occupied by InfoSage Systems. Personnel from Mascon are working in InfoSage. Therefore it is legally a Mascon Global Limited subsidiary, and should be claimed by MGl creditors.

In this vendors list by Electronics Corporation of India for the year 2014, Mascon Global Ltd is mentioned as a supplier of networking, and the address given is 6-3-663/B, 2ND Floor, MRL House, Panjagutta, Hyderabad. So till 2014 Mascon Global was active at this address, or perhaps both MGL and InfoSage are working together at this address?

Ebusinessware became MediaAgility

Ebusinessware was one big acquisition made by Mascon Global in 2008 for $35 million. It was supposed to have been renamed "MGL Finance" but this was only temporary. In the last directors report, they talked of restructuring subsidiaries but did not reveal the new companies name which is: iDEA Solutions Inc.

But there was another undisclosed restructuring of Ebusinessware. No less than three new companies were formed: MediaAgility, Ondemand Agility, and Adglobal360. The directors and important personnel of Ebusinessware: Edward Hoofnagle, Sanjeev Midha, Rajesh Abhyankar, Ashu Chadda, etc. were distributed into these three companies.

MediaAgility India Private Limited was incorporated on 16 November 2010 and registered at Registrar of Companies, Delhi. Its authorized share capital is Rs. 500,000 and its paid up capital is Rs. 100,000. The World Headquarters, 14 Wall Street, Suite 5E, New York address of MGL Finance is now the office of MediaAgility. Same with the Ebusinessware office at SCO 43, Old Judicial Complex, Gurgaon, which now houses MediaAgility. And similarly the MGL Finance properties at Singapore and London, are now MediaAgility offices.

But one office of MGL Finance in USA: 18 East Lancaster Avenue, Malvern, Pennsylvania, was sold on 03/03/2011 as per records for more than $6 million. This pdf file gives details of the old offices of MGL Finance/Ebusinessware.

Ondemand Agility is US based product development Company incorporated on 16 August 2013 in California. Several personnel and assets of Ebusinessware were transferred to this company without informing shareholders and creditors of Mascon Global. On Demand Agility in India shows charges of 1 crore 55 lakh by Deutsche Bank AG, New Delhi, and 4.5 crore by Punjab and Sindh Bank, Delhi.

Adglobal360 India Private Limited was incorporated on 19 March 2010 and is registered at Registrar of Companies, Delhi. Its authorized share capital is Rs. 50 lakh and its paid up capital is Rs. 441,800. Directors are the same as MediaAgility/Ebusinessware/MGL Finance.

This entire restructuring of a subsidiary company was done by Mascon Global from 2010 onwards without informing the shareholders or creditors. The transfer of assets, personnel, money, to these new companies has to be accounted for.

Section 447(1) of The Companies Act, 2013 defines fraud to include:

(a) any act,

(b) omission,

(c) concealment of any fact

by a company or any body corporate. Mascon Global has done the same in all its backroom deals with Qudrant 4, Secure Earth, and the illegal formation of new companies from the old subsidiaries like Ebusinessware, and iDEA Solutions Inc. Ebusinessware twitter account started going silent from 2010, while MediaAgility made its first tweet on 23 Dec 2009:

MediAgility added another customer MVIL (www.minyanville.com) for it's Mobile platform (http//www.ebusinessware.com/solutions/cellagility) 5:19 PM - 23 Dec 2009

MediaAgility gives the game away in this post making the astonishing claim: "A client of MediaAgility since 2005, Minyanville sees a phenomenal growth in the number of people visiting their website." So MediaAgility quietly dropped all references to Ebusinessware, which was there in their first tweet. That MVIL was Ebusinessware's client is proved in their old document: "Minyanville, a leading provider of paid financial news to finance savvy organizations, uses our services to run their technology development. Our proprietary platform called CellAgility used Cloud Computing for this implementation."

Many such clients of Ebusinessware have been distributed among MediaAgility, On Demand Agility, and Adglobal360.

Mascon Life Sciences

Mascon Global Limited's Life Sciences division was established in 2001 and launched a variety of products and services for addressing and solving biological problems ranging from Genomics to drug designing. Mascon Life Sciences was engaged in disciplines like Genomics, Proteomics, Cheminformatics, Bio-computing, FDA compliance, Pathway designing and analysis, Database designing and Biological algorithm designing.

Bioinformatics is a computer intensive field and Mascon Life Sciences was rated among the top 20 companies by ACS-bioINFORMATICS in a 2005 survey. Mascon Life Sciences has filed its first patent, which is also probably India's first patent as well, in the bioinformatics arena, the EXOMEBlast, an iterative and comparative BLAST tool. Mascon has developed a broad spectrum of seven-eight software tools, applicable in wide range of activities from genome mapping to molecular modeling. In 2004 Mascon Life Sciences entered into a strategic alliance with Span Diagnostics, one of India's largest manufacturer of diagnostic products. Span used Mascon's proprietary software "EXOMETM" to analyze and target important infectious diseases such as HIV, TB etc.

Details of another bioinformatics patent filed by Mascon Global in the United States of America. Inventors include Avinash Agnihotry.

Mascon Life Sciences had its own website (www.masconlifesciences.com) but it was closed down. This blog dayzatmascon shows photos of their office and laboratory in Gurgaon, Delhi.

In their report, Mascon Global said:

To best capture value in the healthcare and life sciences sector in 2008-2009, we consolidated our healthcare and life sciences (HCLS) business activities, revamped the leadership team, and launched an aggressive growth plan to achieve a three to five times increase in revenue over a three-year period starting in the 2009 fiscal year. We drove an organizational alignment enabling us to operate as a single global team in HCLS.

We launched four new business solutions in HCLS in 2008-2009. Life Sciences R&D Solutions is a set of targeted solutions for drug discovery and clinical development to help life sciences firms transform their R&D operations. The Pharmaceutical Collaboration Platform is an innovative solution for enabling global collaboration and knowledge management in pharmaceutical companies. BI Operations Management is an optimized solution to manage complex BI processes in life sciences companies. The MGL Electronic Medical Record (EMR) platform is a fully integrated SAAS-model for enabling digital healthcare.

The Life Sciences subsidiary of Mascon Global had a lot of assets, intellectual property, and a respectable brand. Shareholders and creditors would like to know what happened to Mascon Life Sciences?

Mascon Life Sciences merged or sold?

In a 2007 interview with Express Pharma, Mascon Global Chairman Sandy K Chandra, had this to say:

Today, Mascon Lifesciences employs over 250 people in which 55 people contribute to R&D.

Our focus is on the computational side of drug discovery. It is a billion dollar business and 40 to 50 percent of drug discovery is based on the use of information technology, where technology is on computational side.

We also provide free software to many hospitals in India wherein they just have to pay for the data. Over the next three years, we might enter the clinical research or pharmaceutical arena ourselves.

We have developed relationships with pharmaceutical companies like Pfizer and J&J. While our focus is on the computational side of the technology, we are also putting in money into build in R&D capabilities for Amrita University in Chennai.

Amrita University has this to say on Mascon Life Sciences:

Amrita Biomedical Engineering (AMBE) focuses on developing cost effective biomedical solutions. Dr. Bipin Nair, Dean, Amrita School of Biotechnology is the coordinator of AMBE. AMBE is the only TIFAC CORE for biomedical engineering in the country. AMBE's industrial partners include MOS Pharma Services,USA, Biocon, Bengaluru and Mascon Life Sciences, USA.

Has the entire life sciences division been moved to the United States? The registered address for Mascon Life Sciences: B–8/10, Vasant Vihar, New Delhi, also doubled as a corporate office of Mascon Global. At this address now is Secure Earth Health And Life Technologies Limited. Corporate Identification Number is (CIN) U72200DL2005PLC139425 and its RoC Delhi registration number is 139425. Its authorized share capital is Rs 12.5 crore and its paid up capital is Rs 504,000. Money transferred from Mascon Life Sciences, along with the premises and personnel?

While the parent Mascon Global became Secure Earth, Mascon Life Sciences was converted into new companies without any formality.

The directors of Secure Earth Health And Life Technologies Limited are Avinash Purshottam Agnihotry and Narendra Puppala, both of them originally with Mascon Life Sciences and Mascon Global respectively. Another company with a similar name and the same Vasant Vihar address is Secure Earth Advanced Systems Private Limited. The directors of this company are Chandra Krishnamurthy (Sandy) and Narendra Puppala. Since they occupy the address of Mascon Life Sciences, and have the same directors as the old company, both these companies should be considered subsidiaries of Mascon Global, and their books should be investigated and accounts revealed to shareholders and creditors.

Mascon Global became Secure Earth

The story of Mascon Global starts with K Chandra's father V Krishnamurthy and his company Mascon Technical Services Ltd. The whole sordid tale is given in this Indian Express article.

MGL then purchased the IT assets of Mascon Technical Services Ltd, for Rs 2.4 crore. We learn from a court document that Mascon Technical Services changed its name to BT System & Services with address at Padma Complex, 4th Floor, 320, Anna Salai, Chennai. Its authorized share capital was Rs 12 crore and its paid up capital was Rs 6.4 crore (where did all this money come from?). Directors were Janakiraman Ramamurthy, Kothandaraman Srinivasan, Anandappa Krishnan and Narendra Puppala (CPO in Mascon Global) and balance sheet was last filed on 31 March 2011.

By 2012, Mascon Global ltd was suspended from the Bombay Stock Exchange, but most of the company subsidiaries had been hived off and the remainder transferred to BT System & Services (BTSS). In this new avatar, BTSS (Mascon Global) tried the old trick of acquiring another listed company. In 2012, Globsyn Infotech underwent a merger/acquisition with BTSS by a share swap and the name of the new company was changed to Secure Earth Technologies.

Hari Chandra, son of K Chandra, who was VP Corporate and M&A in Mascon Global Ltd from 2009, became director of Secure Earth. Other personnel from Mascon Global/BTSS came in through the back door like R. Gowri Shankar and Maya Chandra. Secure Earth Technologies is focused on providing IT solutions in the Banking and Financial Services domain. Secure Earth Technologies was suspended from trading on the BSE from December 2014. Financial results for Dec 2014 declared in March 2015, showed zero income and a loss of 67 lakh.

In its 2013 annual report Secure Earth showed the following list of subsidiaries

1. Synergy Information Technology, USA
2. Synergy Log-in Systems Sdn Bhd, Malaysia
3. Globsyn Technologies Inc, USA
4. Ivision India
5. Sigma Soft pvt ltd, Singapore
6. BT System and Service Limited

Further it states that BT System and Service has its own subsidiaries: Gee Softech India pvt ltd (see image below) and Real Time Tech Solutions pvt ltd (RTTS). Of these RTTS showed a revenue of 6 crore in 2013. An investment company Genius Finvest, had the same directors as BTSS (Mascon Global) and was allotted 1 crore shares of Secure Earth Technologies in the year 2013 probably as part of the share swap deal.

This possession notice from the State Bank of India in the year 2011 lists Gee Softech as an owner of a Mascon Global property, which proves that all these new companies are actually Mascon Global subsidiaries. This possession notice and subsequent auction, for the recovery of 131 crores, was not successful as that debt still stands and can only be recovered when Mascon Global creditors become shareholders. The B 8/10 Vasant Vihar plot in the name of K Chandra, includes a building that housed Mascon Global's corporate office, the subsidiary Mascon Life Sciences office, and now house newly formed companies by K Chandra to escape the claims of creditors.

According to data from the Ministry of Corporate Affairs, the old BTTS was reincorporated as Secure Earth Expert Domain Solutions pvt ltd at Jeypore Terrace II Floor, 219 Lloyds Road, Chennai. Another company at the same building, and with the same directors, is Madras Finvest Private Limited. Madras Finvest was involved in a Mascon Global property sale case in the Delhi High Court. Another company at the same address, and same directors, is Synerfin Factors Private Limited. Real Time Tech Solutions pvt ltd (RTTS) also has a branch running at this same address!

RTTS as a Mascon Global group company

This blog post by an RTTS employee from 2009, describes the company as a sister concern of Mascon Global Ltd. RTTS is into embedded computing for the defence and aerospace sectors, which makes it a very valuable subsidiary.

This Elance profile states very plainly: "Established in 1998, RTTS India (Mascon Global group) has set a precedent of delivering end-to-end system integration and software solutions for real-time environments in the defense sector." A Silicon India profile shows Anugrah Shukla working presently as the RM/AGM at RTTS-Mascon Global Ltd, Delhi/NCR.

To summarize, most assets of Mascon Global Ltd were surreptitiously transferred to BT System and Service, which was used to takeover Globsyn Infotech and rename it Secure Earth Technologies. Parts of BTSS/MGL also became other companies with the Secure Earth name. Simultaneously BTSS is also a subsidiary of Secure Earth Technologies, and has subsidiaries of its own, which occupy MGL properties!

The Ministry of Corporate Affairs also has data on financial charges on these companies. RTTS has charges of 27 crore by State Bank of India (Specialised Commercial Branch, Krishi Bhavan, Hudson Circle, Bangalore) from 2011. Gee Softech has charges of Rs 130,40,00,000 by JM Financial asset reconstruction company, 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai, and the date of charge is 26/3/2014. This exact same amount of 130.4 crores is shown as a charge against Mascon Global Limited, with the exact same company JM Financial asset reconstruction, on the exact same date. Proves beyond doubt that Gee Softech is a MGL subsidiary.

All these companies and directors are linked to each other and to Mascon Global Limited. Secure Earth looks to be a favorite name for this family, because the old corporate office of Mascon Global, and its subsidiary: Mascon Life Sciences, is now occupied by Secure Earth Health And Life Technologies Limited and Secure Earth Advanced Systems Private Limited. Both have the same directors as Mascon Global and Mascon Life Sciences.

Sandy Chandra talks about Secure Earth

In 2012, Sandy Chandra gave a lecture at IIT Madras, entitled "Confessions of a Serial Dreamer". He described his career with Lummus Crest, ABB Lummus, turning around bankrupt companies UCAL Fuel, India Meters, and Cauvery Sugars. He talked about getting into the IT services industry but refused to even mention Mascon Global Ltd!

Sandy Chandra went on to talk about Secure Earth:

“Secure Earth” is the brand under which we are building all our ventures. The ventures are built around an incredible team of technologists and domain specialists. Each team member has a stake in the business. We will grow the business from the current $200 mm at over 40% CAGR for a foreseeable future.

I am personally focused on building a health care practice that allows capturing every medical data under a single UID which will allow public health, practitioners and hospitals to provide more efficient care.

It should be clear now that all the assets, personnel, offices, and equipment of Mascon Global have been surreptitiously transferred to the Secure Earth group of companies. The listed entity Secure Earth Technologies has charges of 2 crore by Peerless Central Financial and Investment company, Calcutta, 50 lakh by Bank of Madura, Chennai, 3 crore by Citi Bank, Mumbai, and 2 crore by Federal Bank, Mumbai.

The 31st Annual Report by Secure Earth Technologies, dated 29th August 2015, for the first time admits to the relationship with Mascon Global ltd. It shows borrowings and advance received from Mascon Global Ltd of 38.98 crore. The report also mentions Secure Earth Health & Life Tech Limited.

In the Secure Earth Technologies AGM on 30 September it was resolved to shift the Registered office from Mumbai to the same LLoyds Road address in Chennai where the other shell companies of Sandy Chandra are based.

Madras Finvest and Mascon Global property sale case

Link to the case at High Court Delhi.

The property: A-32, Diplomatic Enclave Extension, Co-operative Housing Building Society Limited, Westend Colony, New Delhi.

The owner was Madras Finvest pvt ltd, a finance corporation linked to Mascon Global, and to its Chairman Sandy K Chandra. The value of the property is estimated to be 55 crore. Madras Finvest and K Chandra mortgaged this property with Bank of India (BoI) for credit facilities for Mascon Global, and as on 31 July, 2009 a sum of Rs 31,08,72,842 (31 crore plus) was payable by MGL to BoI.

By this time Mascon Global was in financial trouble and they sold the property to SICPA in lieu of the latter paying off the mortgage amount. However K Chandra claimed this sale deed to be a sham, and portrayed the arrangement with SICPA more as a loan. This claim was to accepted by the court. Chandra continued occupying this plush property till late 2013 when the judgment was delivered. Even in 2014, Maya Chandra, director of Secure Earth Technologies had listed this property as her address.

How and when did Mascon Global or K Chandra acquire this plush property, valued over 50 crore? What was the source of the funds?

Mascon Global creditors need to look at the books of this sister concern, Madras Finvest, since there is a demand of more than 70 crore Rupees on it from the Debts Recovery Tribunal in Chennai.

Mascon Global acquisitions and restructuring

Mascon Global made an acquisition of Anthem Technologies for $16 million ($13 million by GDR and balance in cash), renamed it MGL Consulting, and sold it to Quadrant 4 for $19 million.

In its 2006 report, Mascon Global reported the acquisition of Versatech Consulting Inc., USA and some specified accounts, for a total consideration of $38 million; $13 million by issue of GDR and balance of US $25 million in cash. In the 2008 report it was stated that Versatech Consulting achieved total revenue of Rs 14 crore. In the 2012 report the earnings of this subsidiary were Rs 7 crore.

Mascon Global acquired Comtel Holdings Private limited, Singapore for a total consideration of $3 million; $2 million by issue of GDR and balance in cash in 2006-07. But this subsidiary was not mentioned in later reports. Comtel Holdings Singapore is now Comtel Solutions pte ltd. But Mascon did acquire some business in Singapore; as the office of MGL Finance was located at 31, Cantonment Road, which is now the office of OnDemand Agility. Another Singapore company: Four Serv Singapore Pte Ltd, is believed to have been acquired by MGL.

A local Hyderabad software company, Exalt Systems pvt ltd (CIN: U72200TG2000PTC034188), was acquired in 2006. Personnel from Exalt Systems can now be found in iDEA Solutions Inc. The offices of Exalt Systems: No.235, Road No.36, Jublee Hills, Hyderabad; and 6-2-6, Siddharth Bharati Complex, Lakdikapul, Hyderabad; have been sold off to other companies.

Earlier in 2008, Mascon Global Ltd acquired USA based Jass & Associates and SDG Corporation for a total consideration of $55 Mn; $20 million by issue of GDR and balance of US $35 million in cash. But SDG Corporation was not mentioned in later reports. In the 2012 report it was stated: Jass and Associates Inc achieved total revenue of Rs 33 crore. A subsidiary of Jass: InfoSage Systems was also absorbed into Mascon Global, but today functions independently.

In a press release on May 15, 2008: Mascon Global (MGL) has taken over Ebusinessware Inc for a sum of USD 35 million. As a result of this acquisition, Ebusinessware will be renamed as MGL Finance. In the 2008 report it was stated that Ebusinessware Inc., USA, a 100 % subsidiary of the Company achieved total revenue of Rs 10 crore. In the 2012 report earnings were a dismal Rs 1.28 crore. The restructuring of Ebusinessware into MediaAgility was done to escape the claims of Mascon Global creditors and shareholders.

Restructuring of Mascon Global subsidiaries into iDEA Solutions inc

During August 2011, the company had taken initiative to combine the business operations of the operating subsidiaries in the US, namely, Ebusinessware, Jass & Associates, and Versatech Consulting by way of statutory merger of the corporations. This was stated in the Directors Report of 2012, but the name of the new merged company was not revealed.

Over in the USA, it was reported that Jayaprasad 'JP' Vejendla formed iDEA Solutions Inc. in 2009 from the technology consulting divisions of JASS & Associates, Versatech Consulting, and eBusinessware. IDEA has a revenue of $100 million annually and more than 1,157 employees worldwide.

IDEA SOLUTIONS INC. was registered on 16 June 2011 as a domestic profit corporation in Michigan with the company number 04120Y. Later it was registered in New York and California, occupying the offices of MGL Americas. The registering of Mascon Global subsidiary companies in America as a new company was a fraudulent act designed to escape the eye of shareholders and creditors.

Another wholly owned subsidiary was Mascon Life Sciences which vanished while its offices, personnel and assets were transferred to newly registered companies without informing shareholders or creditors.

Mgl Americas

Mgl Americas Inc was established as a subsidiary of Mascon Global Ltd. in 2001 and incorporated in the state of New Jersey. In their last report, Mascon Global said:

MGL Americas Inc., USA, a 100 % subsidiary of the Company achieved total revenue of Rs 19,658 lakhs and EBITDA of Rs (5,695) lakhs. The
above results also include the performance of Mascon Global Information, S.DE.R.L.DE.C.V. (Mexico), step-down subsidiary of the Company. Mascon Global GmbH., Germany another step down subsidiary of the Company did not have any operations during the year and steps are being taken for its revival.

During the year, MGL Americas Inc, USA underwent financial settlement with its bankers, namely, M/S. Laurus Master Fund to adjust their dues towards their term loan and working capital funding.

MGL Americas had also formed another step-down subsidiary called MGL Telecom Inc. to cater to the Telecom business and except for certain payroll being operated through this corporation no other formal business operations are carried out in this subsidiary.

Anthem Technologies was acquired in 2006 for $16 million and renamed Mascon Global Consulting Inc in 2007. This subsidiary was merged with MGL Americas in 2008, but later sold.

This sale of MGL Solutions to Quadrant 4 for $19 million was not mentioned in the report. If that deal was only with the American subsidiary, then how did Quadrant acquire office space and personnel in India? Obviously Mascon Global did this deal keeping shareholders and creditors in the dark.

In 2009, Mascon Global Limited paid to its subsidiary MGL Americas 2.8 crore as advance during the financial year. It also paid 34.8 crore as advance to another subsidiary Mascon Global (Europe) Ltd. but it has not charged any interest from both the transactions. The TPO sought explanation regarding this non-charging of interest, in response to which the assessee replied vide letter dated 14.10.2009 stating that these advances were made as a part of long term working capital for acquiring new business.

As of now the registered office of MGL Americas: 1249, South River Road, # 102, Cranbury, NJ 08512, is occupied by another company named iDEA Solutions inc.

Quadrant 4 Software Solutions

Quadrant 4 Software Solutions is a Private Company incorporated on 16 April 2010. It is classified as a Subsidiary of a Foreign Company and is registered at Registrar of Companies, Hyderabad. Its authorized share capital is Rs. 5 crore and its paid up capital is Rs. 3,45,31,352. The foreign company which owns it is called Quadrant 4 Systems Corp, and its CEO is Nandu N. Thondavadi Ph.D, who was previously with Mascon Global.

Mascon Global Limited’s Board accepted in its Board meeting of January 31, 2005 the resignation of Dr. Nandu Thondavadi as Managing Director. Nandu became CEO of the US subsidiary of Mascon Global Limited. But later Thondavadi left MGL Americas as well, taking a portion of the company assets and personnel with him.

This was the first break in the company and it happened in 2010. This information was not revealed to the shareholders, and the entire separation took place in the US. As per data from the Securities and Exchange Commission, Quadrant 4 Systems Corp purchased MGL Solutions (renamed as Quadrant 4 Solutions) from MGL Americas. Effective March 1, 2011, the Company acquired all of the outstanding shares of Quadrant 4 Solutions, Inc. (from MGL Americas) and also purchased certain software development resources and assets based in India and assumed certain liabilities associated with those assets. The aggregate purchase price was $19,000,000, payable as follows:

(a) a note for the amount of $3,000,000 (three Million Dollars) carrying a simple annual interest of 12% maturing on December 31, 2011 payable to Laurus Funds. This fund filed for bankruptcy hence all assets and liabilities were transferred to Calliope Capital Corporation, which has as of Nov 2014 sued Sandy Chandra's son Hari Chandra, for certain credit obligations.

(b) a note for the amount of $5,000,000 (Five Million Dollars) carrying a simple annual interest of 5% maturing on June 30, 2014

(c) issuance of 4 million shares of the common stock of the buyer

(d) contingent earn-out of up to $5,000,000, payable over three years, if earned, as defined elsewhere

(e) all Liabilities due with respect to certain accounts payable necessary to operate the business of the Company as listed on Schedule 1.02(b); and all accrued and unpaid Liabilities owing to employees of Seller and/or the Company who are necessary to operate the business of the Company as listed on Schedule 1.02(c) limited to a maximum of $2,000,000 (Two million Dollars)

Contingent earn-out of up to $10,000,000, payable over three years, if earned, as defined. Neither this deal by its subsidiaries and former Directors, nor its financial implications, were ever revealed to the shareholders and creditors of Mascon Global Limited in India.

Even more important, in their Nasdaq filing, Quadrant 4 Systems has said: "On March 1, 2011, the Company issued 4,000,000 shares of common stock at $1.00, per share, to purchase all of the outstanding shares of Quadrant 4 Solutions, Inc. (formerly MGL Solutions, Inc.) These shares were sold to an accredited investor in a private transaction and therefore believed to be exempt from registration." The shares belong to the parent company Mascon Global but are held in a private name, probably Sandy Chandra.

Quadrant 4 Systems (NASDAQ symbol QFOR) listed at 50 cents in 2011 and rose to 1 dollar in Nov 2013. Analysts predicted a target price of $5, but QFOR posted a loss in the first quarter of 2014 and the stock fell sharply. In their latest result for the first quarter ended March 31, 2015, Quadrant 4 showed a gross profit increase of 53% year-over-year to $5.3 Million. The stock is at 30 cents and whether or not the target of $5 is achieved, those 4 million shares belong to Mascon Global Ltd.