KOCHI: Zonta Infratech Pvt Ltd, which was under fire for the recent Brahmapuram fiasco, is back in the news for all the wrong reasons. In a surprise move that could have wider ramifications, a German investor has filed a complaint with Prime Minister Narendra Modi alleging that Rajkumar Chellappan Pillai, MD of the Bengaluru-based firm, has siphoned off his investment in the company.
Patrick Bauer, CEO of Bauer GmbH, in the letter dated March 24, 2023, said the German firm has invested Rs 357.4 crore (4 million euros) and additionally given a standby letter of credit for Rs 20.4 crore (2.28 million euros). “I realised too late that my/our hard-earned money that I invested in India was siphoned off by Rajkumar Chellappan Pillai to benefit him and his family. I learned that the money was transferred to different private entities that had backlinks to Rajkumar Pillai,” Patrick said in his letter.
The complaint, a copy of which has TNIE, shows the German firm invested in 2016 and 2018. “The firm contacted me to get German waste bin technology to India in consonance with ‘Swachh Bharat Abhiyan’,” he said.
Investing in India was a mistake, no safeguards in place: Patrick Bauer
“We decided to set up a small manufacturing unit in Bengaluru to produce underground and overground waste bins,” said Patrick.He said it turned out that Pillai never really meant to do honest business with the German firm. “He began working in a non-transparent manner and failed to provide monthly reports and financial details. For the past four years, I have been struggling to get my money back. As of now, more than Rs 44.6 crore (5 million euros) including fees and interest are pending,” he said in the letter.
Patrick alleged that he was threatened by Pillai, the son-in-law of former LDF convenor Vaikom Viswan, and told to forget about his investment if he filed any complaint against him.
“Rajkumar Pillai recently made headlines, albeit infamously, for allegedly causing the legacy waste fire at Brahmapuram, Kochi, in Kerala. There are multiple corruption allegations already levelled against him. After great difficulty, I could finally register an FIR bearing No. 34/2023 on March 8, 2023, at Cubbon Park Police Station in Bengaluru for fraud and cheating. However, to date, no action has been taken by Bengaluru police against Rajkumar Pillai,” he said.
Patrick added that investing in India was a mistake, as he feels the government has no safeguards to protect foreign investors.
“I feel that the government of India does not support investors with prompt action, leading to huge monetary losses. As a second-generation owner of a reputed firm in Europe, I am afraid to say many of my business colleagues are anxious about investing in India after seeing my plight. I have already brought the matter to the attention of the German Embassy and the German Consulate in Bengaluru. I fear a total loss of my investment, considering the recent developments in Brahmapuram. I humbly call upon you to take prompt action against those involved in the duping, and secure my investment,” the letter to the PM said.
Besides Kochi corporation’s biomining and capping contract, Zonta was awarded the waste-to-energy project at Brahmapuram by the Kerala State Industrial Development Corporation (KSIDC) despite allegedly being ‘underqualified’.