Gujarat High Court Freezes Assets Of Telecom Businessman Bankim Brahmbhatt, Others In ₹2,337 Crore Recovery Suit
The Gujarat High Court has restrained telecom businessman Bankim Brahmbhatt, who was the CEO and held approximately 87.5% beneficial ownership in the companies seeking recovery, from transferring or dissipating his assets in India and abroad.
The companies, including Brodband Telecome Inc., are seeking to recover approximately ₹2,337 crore. They accuse Brahmbhatt, in collusion with Mohit N. Rao, of using a fictitious telecommunications business model and allegedly forged agreements, invoices and receivables to secure nearly US$500 million in financing from lenders.
The funds were allegedly diverted to entities controlled by Brahmbhatt, including Bankai International Private Limited, Mauritius, and other entities in India.
Justice D.N. Ray granted the ad-interim injunction while hearing appeals against an Ahmedabad civil court order that had protected only 49,032 equity shares of Bankai Infotech Private Limited. The civil court had deferred the remaining requests for asset protection and disclosure until notice was issued to the respondents.
At the relevant time, Brahmbhatt was the sole director, CEO, and ultimate beneficial owner of the appellant companies. He commenced personal Chapter 11 bankruptcy proceedings in the United States in August 2025.
The High Court noted that the US Bankruptcy Court had appointed John D. Baumgartner as Chief Restructuring Officer of the appellant companies. In an order dated October 15, 2026, the US court recorded substantial evidence of fraud and a real and substantial risk of assets being concealed or dissipated.
It permitted the companies, through the Chief Restructuring Officer, to initiate proceedings in India and Singapore. The Singapore High Court subsequently granted injunctive relief and appointed interim receivers and managers over the relevant assets.
The Gujarat High Court observed that the orders passed by the US and Singapore courts established a prima facie case in favour of the companies. It held that they would suffer irreparable loss if the assets were allowed to be dissipated.
“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 court held that the civil court had rightly granted an injunction but erred in limiting the relief to the shares of Bankai Infotech. It referred to the Supreme Court's decision in Wander Ltd. v. Antox India Pvt. Ltd. on the principles governing appellate interference with a trial court's exercise of discretion.
It also discussed the English decisions in Nippon Yusen Kaisha v. Karageorgis and Mareva Compania Naviera SA v. International Bulkcarriers, which recognised the power to grant freezing injunctions to prevent the disposal of assets.
Under the High Court's directions, Brahmbhatt and Rao have been restrained from transferring, alienating or otherwise dealing with their movable and immovable assets in India and abroad. The injunction also covers assets held through entities in which they have direct or indirect interests.
The court also restrained the entity associated with Procon Holding Limited and three other Indian entities allegedly among the recipients of the diverted funds from dealing with assets owned or controlled by them, directly or indirectly, in India or abroad.
The court directed Brahmbhatt, Rao, the entity associated with Procon Holding Limited and the three Indian entities to disclose details of their assets, bank accounts, investments, shareholdings, and beneficial interests in India and abroad. They must also disclose transfers and other dealings involving these assets since September 25, 2020, along with supporting documents and bank statements. The disclosures must be filed within two weeks of the order being uploaded.
In a connected appeal, the court appointed Assistant Government Pleader Hetal Patel and advocate Aishwarya Gupta as joint receivers over 49,032 shares, representing 41.53% of Bankai Infotech Private Limited. The appellants must pay each receiver ₹1 lakh within three days of the order being uploaded.
The matter will next be heard on January 11, 2027.
For Appellants: Senior Advocate Saurabh Soparkar, Mihir Thakore, Advocates Nisarg Desai, Hrashit Thanki, Anuj Berry, Atul Jain, Abhinayu Chaturvedi, Jasleen Virk and Prabhu Gupta