Kinetic Finance Limited has been charged of diverting to other business entities of its group and it is also said that the name of the company was later changed to Athena Financial Service Limited after its contractors resigned. The consortium in January 2004 conducted a special investigation audit and its report was submitted in February 2004. Based on the reports a few private sector banks filed cases related to fraud, willful omission and cheating against the finance company but none of the public sector banks reported to the CBI or the FBI against the company as a result of which no legal actions were taken. Mr. Arun H.
Firodia, the company’s chairman and his daughter Ms. Sullaja Firodia Motwani are considered as the defaulters since March 2005 till March 2012. What astonishes is that despite being a defaulter, Mr. Firodia was awarded Padmashri, the 4rth highest civilian award in 2012. Mineylife.in, a leading online financial journal of India has explained and exposed the matter in details based on the RTI details by one of its activists.
Despite a number of criminal cases being filed against the company, in the Pune and Bombay high court and also the Supreme Court of India, the matter as of 2012 is under the scanner of investigating agencies of India like the Enforcement directorate and the CVC. The people involved in such scandals in many cases deposit their money in The Swiss Bank of Switzerland as a result of which with their death, the money is not only wasted but is also left with another nation. These scandals prove to be hazardous not only to the citizens but also the government and the nation as a whole.