The Gujarat High Court on Monday froze the assets of former telecom executive Bankim Brahmbhatt and his associates in connection with an alleged US$500 million financial fraud. [Brodband Telecome Inc & Ors v. Bankim Brahmbhatt & Ors]
Justice DN Ray passed the interim order on November 2 while hearing appeals filed by Broadband Telecom Inc and six other companies seeking recovery of approximately $243 million (₹2,337 crore) allegedly diverted through entities controlled by Brahmbhatt.
The Court found that the companies had established a prima facie case for interim protection.
"Doubtless, if the assets are not protected and permitted to be frittered away, as apprehended by the appellants herein, there will be no recovery worth the name in favour of the appellants herein," the Court observed.
The dispute concerns allegations that Brahmbhatt and his associate Mohit Rao obtained nearly $500 million in financing by presenting fictitious telecommunications transactions, forged contracts and fabricated customer receivables to international lenders.
The alleged fraud surfaced in July 2025 when lenders discovered that email confirmations purportedly received from telecommunications companies originated from fake domains. For instance, emails supposedly sent by Belgian telecommunications company BICS came from belgacomics.com instead of its genuine domain, bics.com.
The companies alleged that investigators subsequently identified 26 fabricated email confirmations involving 18 telecommunications companies and receivables worth approximately $158 million. They also alleged that agreements involving Telstra, Italia Sparkle, BICS and Taiwan Mobile had been forged.
The companies subsequently entered bankruptcy proceedings in the United States. A court-appointed officer investigated the transactions and traced approximately $190 million to Bankai International in Mauritius.
According to the plaintiffs, approximately $719,737 was subsequently transferred to three Ahmedabad-based companies: Broadband Telecom Private Limited, Teles Call Centre Private Limited and Innova Call Centre Private Limited. The companies also alleged that Brahmbhatt transferred his 41.53% shareholding in Bankai Infotech to his son Raj, who subsequently transferred it to his grandfather through gift deeds without monetary consideration.
The US bankruptcy court permitted proceedings in India on October 15, while the Singapore High Court granted asset-freezing relief on October 23.
An Ahmedabad civil court initially restrained the transfer of 49,032 Bankai Infotech shares, but deferred wider relief.
Justice Ray found that the civil court had erred in limiting the injunction despite accepting the grounds warranting protection. Court said,
"The learned 3rd Additional Senior Civil Judge and A.C.J.M., Ahmedabad (Rural), though has rightly granted the injunction, as it did, but also was in error in stopping short of granting the full relief as prayed for by the appellants herein on the very same grounds that the partial injunction was granted."
The Court explained that Brahmbhatt's bankruptcy proceedings, coupled with the orders of the foreign courts, established a prima facie case. The possibility of assets being dissipated also weighed in favour of the companies.
Accordingly, the Court froze 36 identified assets linked to Brahmbhatt and 13 linked to Rao, alongside other assets under their control. It also directed disclosures of assets and financial transactions dating back to September 2020.
The matter will be heard on January 11, 2027.
Senior advocates Saurabh Soparkar and Mihir Thakore along with advocates Nisarg Desai, Harshit Thanki, Anuj Berry, Atul Jain, Abhimanyu Chaturvedi, Jasleen Virk and Prabhu Gupta, briefed by Trilegal and Gandhi Law Associates, appeared for the appellants.
[Read order]