Ryan international group has been in the eye of storm after a 7-year-old school kid was killed in one of its school in Gurgaon last month. However, it has emerged that the group not only failed in providing adequate security to its student but is also allegedly using school’s money to illegally fund its financial outings.
A CNN-News 18 report details the financial statements of the group, run by Augustine and Grace Pinto, expose a murky business empire. According to the report , Ryan properties and Uni-infratech the companies in which Augustine’s children Ryan and Snehal are directors , received crores in funds from Family run trust.
The balance sheet of both these companies accessed by CNN-News 18 investigation revealed that these companies received crores from family run trust, which is not allowed under Companies act. The probe also indicates that fee money was diverted to fund Pinto’s business dealings.
Between 2009-2016, Ryan properties, Uni Infratech and other companies owned by pintos have received over Rs 10 crore as advances from different trusts and schools run by the family, the report said. There is a separate list of schools run by the family that has consistently done business with companies owned by the group giving advances which range from thousands, lakhs and even crores in some cases. These financial statements prove that the money collected by trusts in the form of school fees have been used for their business outings. The trust wing of the Pinto family has been consistently doing business with the financial companies, a clear violation of companies act 20-30. It is serious issue of related party transactions and also transfer prices.
In 2012, Ryan Dot world technology received an unsecured loan of Rs 18 lakh from Ryan foundation for socio economic development, a gross violation of the Indian trust act, a trust cannot lend money. Ryan family have not responded to the allegations.
