Due Diligence

Association of Person, named in Criminal case, with Multiple Companies A Red-flag

Amukha Risk Analytics System (RAS) is the first of its kind innovative application that provides early warning signals through analysis of traditional and alternative datasets for identifying distress sectors and companies ahead of time.

RAS is also a singular repository to carry out deeper levels of due diligence for compliance and related party risk assessment. Our application allows screening of KMPs, Directors, Companies, and Institutions by performing checks against:

  1. Litigation
  2. Regulatory Complaints
  3. Blacklists/ Defaulter List
  4. Sanctions by Global Authorities
  5. Politically Exposed People
  6. Adverse Media

Recently the Enforcement Directorate (ED) has filed a criminal case under the Prevention of Money Laundering Act (PMLA) against cardiologist Dr Naresh Trehan and others in connection with allotment of land for the Medanta Hospital in Gurgaon.

RAS has captured the adverse media coverage around Dr Trehan, who is director on the board of Global Health Patliputra Pvt Ltd.

A further deep-dive into RAS’s related parties dataset has revealed that Dr Trehan is/ was director on the boards of 27 companies. Our related parties screen captures both the active and inactive relationship of directors with the companies.

The companies on which Dr Trehan is/ was associated with are Medanta Holdings Pvt Ltd, Escorts Heart and Super Speciality Ltd, Jubilant Life Sciences Ltd, Punj Lloyd Ltd, Varun Beverages Ltd, Fresenius Kabi Oncology Ltd, Shama Estates Pvt Ltd and 20 other companies (highlighted in the below screen).

In our view, association of a person, who was named in a criminal case, with multiple companies is a potential red-flag for the lenders.

To know more about RAS, email us at info@amukha.com.

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