Whistleblower alerts Wall Street of PE's goof-up | Economic Times

ET’s weekly roundup of the wackiest whispers and murmurs in corporate corridors & policy parlours.Shadow of Doubt Just when we thought things were settling down in this PE shop after a turbulent period in one of its key units, comes this disconcerting nugget. A little bird tells us that a whistleblower has sent a message directly to the Wall Street HQ alleging that the erstwhile local leadership suppressed key financial details from the big bosses and concealed the actual stress levels in the portfolio. To back up the argument, we hear, two exhaustive reports have also been furnished. This might become a matter of material importance drawing full-blown regulatory scrutiny overseas so a comprehensive internal probe has been initiated to check on the veracity of these claims. The cynics among us have been arguing that rarely do these issues come out in the public and inevitably get hushed up in the game of high stakes. But we are told we might be wrong to jump to conclusions just yet.Under the Influence Some time back, this IPO-bound founder flipped when a Chinese investor of his declared it had significant influence at the operation. In the backdrop of the then ongoing IndoChina border tension, such public pronouncements were seen as a tactical blunder. But now, much to everyone’s surprise, the company has classified the founder’s brother as a “relative with significant control or influence.” India Inc. is known for its family businesses, but the sibling in question has been in the middle of several controversies and run-ins, including being the target of an alleged extortion scandal and a sting operation that saw him blurt out “politically” sensitive information. As if that’s not enough, the company has also given 5,000 equity shares as preferential allotment to an employee who just a few years ago was involved in allegations related to official data.House in the Hills All his professional life, this architect nephew of a former Prime Minister has been associated with this Gurgaon-based real estate empire, where he scaled great heights to become the vice chairman and CEO. But like so many of us, he too has been bitten by the startup bug and has joined forces with this exciting luxury living venture helmed by two brothers from Mumbai. So far, with patrons from the Piramal and Godrej families, the dynamic duo has been busy building premium villas and picture-perfect holiday homes in Goa and Alibaug. But now we hear they have set their sights northward to Kasauli to diversify. It’s always been a playground for the capital’s old money and with their new strategic advisor-cum-mentor, it’s time to cash in on the latent demand of this hill retreat.Bleeding Heart Apart from riling up stakeholders, the controversial draft proposal for ecommerce companies has also triggered a turf war within the establishment. A senior policy wonk who often is seen cheerleading startups and their IPO plans on social media, we hear, has been dialing several companies clarifying that his colleagues from the bureaucracy may have been forced to jump the gun and bring in such measures. He also gave an assurance that he will make sure that several of these proposals get diluted in the final version during recent discussions with industry organisations, which also raised their concerns with the government just last week.Turf Spade The Royal Western India Turf Club has appealed to the Maharashtra government for a waiver or reduction in racing licence fees, with Covid hurting the rich man’s club with several billionaire patrons, as it has other establishments. Though a few influential Pune-based politicians are backing the waiver proposal, it’s anyone’s guess how some of the senior Sena leaders, given their distaste for horse racing, would react. “The pandemic has severely strained the state budget, and fees run into crores… not an easy decision,” said a member. It’s happening at a time when some of the trainers licensed by the RWITC are leaving for the Madras Race Club due to poor prize money at Mumbai and Pune.