Cheating investors: Datuk was ordered to pay more than RM600 million
Multiple cross jurisdiction judgements in Malaysia and UK against Datuk Wira Ranjeet Singh Sidhu (Ranjeet), former Group MD of Zavarco Group and current founder/director of Vascory group, 3Lyon group and beneficial owner/controller of Kuber Venture Berhad for various corporate wrongdoings and misappropriations of funds including including breach of trust.
Judgements against Ranjeet:
(1) €101.5 mil (appx RM 512 mil) judgement in Zavarco plc vs Ranjeet Singh Sidhu in UK High Court for wrongly issuing to himself shares of a public company (Zavarco Plc) without paying cash consideration. A criminal offence in the UK.
(2) RM 29 mil judgement (excluding interest) in Zavarco Berhad vs Ranjet Singh Sidhu in High Court of Malaya for wrongfully manipulating Zavarco Berhad’s books to claim money for himself as refund for director advances. A criminal offence in Malaysia.
(3) RM 61 mil judgement (including punitive and exemplary damages but excluding interest) in Zavarco plc vs Ranjeet Singh Sidhu in High Court of Malaya for siphoning RM 12 mil of investors’ money into his personal account. A criminal offence in Malaysia.
- In a Landmark Decision in Zavarco plc vs. Ranjeet Singh Sidhu the UK High Court Ordered Ranjeet Singh Sidhu to make €101.5 Million payment including interest.
In a significant legal development, Datuk Wira Ranjeet Singh Sidhu (Ranjeet) faces a substantial financial obligation following a ruling by the UK High Court in the case against him. The court has ordered Ranjeet to pay €84 million and an additional interest of
approximately €17.5 million to Zavarco plc, which translates to a judgement of over RM 500 mil in today’s exchange rate!
Ranjeet had through an appeal challenged the decision of the High Court Judge, who determined that Ranjeet was obligated to pay the specified amount to Zavarco plc. The Court of Appeal concluded on 22 July 2022 that it lacked the authority to relieve Ranjeet from his liability under the memorandum of association.
Ranjeet had incorporated Zavarco plc in the UK under the Companies Act 2006 (CA2006) to act as a listing vehicle to raise money for the development of a fibre optic telecommunications network in Malaysia. He had claimed that his earlier attempts to raise the necessary money through a Malaysian company had been apparently unsuccessful.
Once incorporated, the Malaysian company’s shareholders would exchange their shareholding in that company for new shares in Zavarco plc, which would then be listed on the Frankfurt Stock Exchange. Under this arrangement, Ranjeet, acting as one of the Malaysian company’s shareholders, would be allotted 840 million shares in Zavarco plc, each with a nominal value of €0.10.
