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<ul><li>The New York branch of <keyword id="6653" type="CITY" weightage="20" keywordseo="ICICI-bank">ICICI bank</keyword> has filed a case against 11 executives of <keyword id="6968224" type="UNKNOWN" weightage="20" keywordseo="Shrenuj-and-Co-">Shrenuj and Co.</keyword> </li><li>The bank has accused promoter <keyword id="218898" type="PERSON" weightage="20" keywordseo="Vishal-Doshi">Vishal Doshi</keyword> and 10 other executives for diverting funds worth $12 million. </li><li>ICICI bank filed the case under the Racketeer Influenced and Corrupt Organization (RICO) Act.</li></ul>ICICI Bank has sued 11 executives from the 100-year-old diamond house, Shrenuj and Co. for diverting funds through its US subsidiary Simon &amp; Golub &amp; Sons (SG). As per recent<a href="https://www.livemint.com/Companies/ImWimGSH6DDTJfqPn9sC5L/ICICI-Bank-files-fraud-case-against-Shrenuj-promoter.html"> reports</a>, the company owes a sum of $12 million (exclusive of interest and legal fees) to the bank. The case against promoter Vishal Doshi and 10 other executives was filed by the New York Branch of ICICI bank in Southern District Court of New York under the Racketeer Influenced and Corrupt Organization (RICO) Act. The bank suspected fraud line activities as it commenced receivership proceedings in Seattle. Prior to this, the bank had filed a petition on 4 October claiming that the series of fraud line activities had been conducted by Shrenuj and other companies related to it. Reports also state that in 2008, the US subsidiary of Shrenuj and Co. signed a credit facility agreement worth $20 million. Further, it had a debt obligation of $18.8 million against ICICI bank in March 2016. The $18.8 million debt included a letter of credit worth $3.6 million and other credit facilities of $15.2 million. Owing to the the insolvency declaration made by Shrenuj promoters in May 2016, the bank had to hire a receiver to resolve the debt obligation issues. Apart from ICICI Bank, <keyword id="6355303" type="DOMAIN" weightage="20" keywordseo="bank-of-india">Bank of India</keyword> has also filed an appeal to commence insolvency proceedings as the diamond house could not service a loan worth ₹2.26 billion.

ICICI bank initiates lawsuit against Shrenuj and Co. to regain a debt obligation of $12 million

<keyword id="6354512" type="CITY" weightage="100" keywordseo="Infosys">Infosys</keyword>' former CFO, T V <keyword id="6491998" type="PERSON" weightage="100" keywordseo="Mohandas-Pai">Mohandas Pai</keyword> today exhorted institutional investors to raise questions about the huge cash pile on the company's books and governance issues, as investors have an obligation to protect their investment. 
 "Capital allocation is very important. Institutional investors should raise those questions. They have a duty...institutional investors should raise questions on governance because it concerns the company's reputation," <keyword id="249145" type="PERSON" weightage="20" keywordseo="Pai">Pai</keyword> told <keyword id="6367495" type="COMPANY" weightage="20" keywordseo="PTI">PTI</keyword> in an interview. <a href="http://www.businessinsider.in/infosys-employees-in-stresspromotions-and-increments-may-take-a-hit/articleshow/57095393.cms">ALSO READ: ​ Infosys employees in stress: Promotions and Increments may take a hit</a> 
 
Infosys had liquid assets, including cash and cash equivalents and investments worth Rs 35,697 crore (about $5.25 billion) on its books at the end of <a href="http://www.businessinsider.in/infosys-employees-in-stresspromotions-and-increments-may-take-a-hit/articleshow/57095393.cms">December 2016</a>. 
 
He asserted that founders, who hold 13% stake in the Bengaluru-based company, had raised these questions like any other investor would. 
 "The founders are investors like anybody else. They hold 13 per cent stake. They have every right to question the <keyword id="6364382" type="ORGANIZATION" weightage="20" keywordseo="Board">Board</keyword>... Since the largest shareholder has sought clarification, they must also seek detailed clarification," he said. 
 
Pai, along with former colleague <a href="http://www.businessinsider.in/infosys-employees-in-stresspromotions-and-increments-may-take-a-hit/articleshow/57095393.cms">V Balakrishnan</a>, had sought a USD 1.8 billion buyback in 2014 just as CEO <keyword id="6369763" type="PERSON" weightage="20" keywordseo="Vishal-Sikka">Vishal Sikka</keyword> was taking over. 
 
"We had raised the issue. We hope that other institutional investors will also raise their voice because the institutional investors have an obligation to protect their investment," he said. 
 
Pai explained that shareholders all over the world ask questions about capital allocation when growth slows down for listed companies, that have too much cash on books. 
 
"All over the world, for listed companies when growth slows down and there is too much cash, shareholders will ask what are they doing with the cash...about capital allocations. Most Boards around the world will respond with a buyback to show confidence in the company and stabilise the stock price," he said. 
 
Pai expressed hope that institutional investors who have a "fiduciary responsibility" to their unit holders, will also ask the same questions, as has been in the case of <a href="http://www.businessinsider.in/infosys-employees-in-stresspromotions-and-increments-may-take-a-hit/articleshow/57095393.cms">Cognizant</a>. 
 Last week, <keyword id="28721" type="CITY" weightage="20" keywordseo="Cognizant">Cognizant</keyword>'s Board approved a plan to return USD 3.4 billion to shareholders over the next two years through share buybacks and dividend, following investor activism. 
 
"Why can't Infosys do something like Cognizant has done. That is very important for shareholders. I hope they ask him that at a time when growth is slowing down," he said. 
 
He said that while reports of the rift would not impact the company's performance but there is "some reputational damage because of this" and pointed out that the board "has to remedy this situation". 
 Over the last few days, Infosys has come under fire from founders like N R <keyword id="6355623" type="PERSON" weightage="20" keywordseo="Narayana-Murthy">Narayana Murthy</keyword> who have publicly raised concerns on alleged corporate governance lapses at <a href="http://www.businessinsider.in/infosys-employees-in-stresspromotions-and-increments-may-take-a-hit/articleshow/57095393.cms">Infosys.</a> 
 
Infosys, however, has denied the allegations and said that its board is fully aligned with the strategic <a href="http://www.businessinsider.in/infosys-employees-in-stresspromotions-and-increments-may-take-a-hit/articleshow/57095393.cms">direction of Sikka </a>and is very "appreciative of the initiatives taken by him in pursuance of this transformation".

Infosys should clarify capital allocation policy: Mohandas Pai tells investors

<keyword id="162971" type="COMPANY" weightage="100" keywordseo="Shrenuj-Company">Shrenuj &amp; Company</keyword>, the 100-year-old diamond house which is also one of the largest in the trade, has landed into trouble because the lender banks have tightened their grip on the four-generation old group. 
 
The lending banks, with a combined exposure of around $450 million, have formed a consortium to obtain court order which would allow them to repossess the company’s diamond inventory, while also restricting the promoters’ travel. The consortium is lead by Bank of India, and includes ICICI Bank, Punjab National Bank, State Bank of Patiala, Standard Chartered bank and Andhra Bank amongst others. 
 
The orders have been issued by the Debt Recovery Tribunal. As per the orders, chairman and MD Shreyas Doshi and group executive director Vishal Doshi are forbidden from travelling outside India without court’s prior permission. 
 
The reason behind the troubles of Shrenuj &amp; Company could be cited to the slowdown in the diamond industry and the failure of its international diversification in Africa. 
 
Other than obtaining court orders, banks have also declared some of the company’s accounts as sub-standard, which means that the interest or principal has remained unpaid for at least a quarter. 
 
While the last quarter of 2015 saw Shrenuj &amp; Company registering a net loss of Rs 4.9 crore, it widened to Rs 38.32 crore in the first quarter of 2016. However, the company had registered a net profit of Rs 2.5 crore in the last quarter of 2015. 
 
<a href="http://www.iijs-signature.org/manual/images/catalog/EXH0285/C_Shrenuj%20Logo%20color.jpg">Image source</a>

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ICICI bank initiates lawsuit against Shrenuj and Co. to regain a debt obligation of $12 million

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Infosys should clarify capital allocation policy: Mohandas Pai tells investors

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Lenders obtain court notices against diamond house Shrenuj & Company

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