Venkys: Is the proverbial about to hit the fan?

[Barmitzvah Boy]

This does not look good!!!

ED seizes 9 properties worth Rs 65 crore of Pune-based food production company in Maharashtra, Karnataka

The ED had initiated an investigation in connection with the illegal remittances made by Venkateshwara Hatcheries since 2011 to its wholly owned subsidiary Venky’s Overseas Limited, United Kingdom.

indianexpress.com

 

[davebirch]

Naughty naughty.
They've been caught trying to pull a fast one. We'll buy a flash pad overseas and disguise it as a business investment. Probably changes the tax status for their advantage. Tax depts don't like that, and once they smell money they hang around for years looking for other things you might have done.

I live by the maxim, "never upset your Mrs or the Tax office"

 

[Drog]

Concerning of course but it Should only take a backhander or two in a brown paper bag to sort it in that neck of the woods.

 

[steve w]

The investigation established that M/s VHPL had no intention to conduct bonafide business through its subsidiary M/s VOL and it was created as a front to purchase an immovable property in the UK for the ultimate enjoyment by the director

Is this us? the most telling thing is the date 2011 - maybe this whole fucking mess is unravelling at last
Nobody has ever understood the business logic - but this is explaining the sudden cost cutting sound bites - this will have been going on in the background for quite a while
Am I being naive here - but could this mean they have to walk away? and any potential buyer wouldnt have to worry about a debt (real or imagined) because it is fraudulent dealing?

 

[davebirch]

Steve, I suppose the real aspect of this "controversy" is, that we don't know.
As drog might say, if the venky's weren't here, where would the Rovers be? There's no doubt they've chucked a shed load into the team over the years, and that has kept us with our head above the waterline. But, it doesn't excuse them of their incompetency, when a bit more thought might have brought them serious moolah.
I reckon nothing will change in respect to the Rovers. It's an open business. They might get their knuckles rapped, pay a fine, and carry on as before (with some minor modifications). No doubt they've got very good lawyers to look after that corner of their business.

 

[Old Darwen Blue]

The venkys in dodgy business shock, who would have thought that?

 

[steve w]

But have they really thrown a shed load of cash at us?
No sane person has been able to understand their "business plan" and many of us have scratched around trying to figure out - What is really going on

Maybe we are about to find out at last
I still struggle to see how it can end well when we possibly owe the best part of £300m - if that £300m turned out to be smoke and mirrors - maybe there is an escape route
Over to ODBs contacts

 

[Old Darwen Blue]

WE don’t owe £300m though, Venkys London PLC owe it.

 

[Drog]

The venkys in dodgy business shock, who would have thought that?

Jack wasn't above a few shennanagins in his business dealings I can tell you.
In fact I've no idea how the really REALLY rich in the UK manage to amass their wealth. Everytime we had a good year and got our heads above water along came HMRC to spirit is away.

 

[Barmitzvah Boy]

The investigation established that M/s VHPL had no intention to conduct bonafide business through its subsidiary M/s VOL and it was created as a front to purchase an immovable property in the UK for the ultimate enjoyment by the director

Is this us? the most telling thing is the date 2011 - maybe this whole fucking mess is unravelling at last
Nobody has ever understood the business logic - but this is explaining the sudden cost cutting sound bites - this will have been going on in the background for quite a while
Am I being naive here - but could this mean they have to walk away? and any potential buyer wouldnt have to worry about a debt (real or imagined) because it is fraudulent dealing?

I agree Steve. What is the business logic of chucking away £270M on Rovers?

 

[Drog]

But have they really thrown a shed load of cash at us?
No sane person has been able to understand their "business plan" and many of us have scratched around trying to figure out - What is really going on

Maybe we are about to find out at last
I still struggle to see how it can end well when we possibly owe the best part of £300m - if that £300m turned out to be smoke and mirrors - maybe there is an escape route
Over to ODBs contacts

Can any sane person understand Abromovic's motives? Shinawatra, Tan etc etc with the latest billionaire with a death wish that Todd Buelly at Chelsea. On a smaller scale Chalky White's escapades at Colne Dynamoes made little sense. Is it just a massive ego trip for most?

 

[steve w]

A simple mans view!!

Its all money laundering/tax evasion/rich getting richer scam!! - we all know that, but I dont pretend to understand the mechanics of it!!
Just think about the Saudi league - How could any sane person reason out spending £100m+ on a player in their 30s - What return can they possibly get?

I almost envy Bury - at least it has a whiff of bovril and authenticity

 

[rovers95]

And Macclesfield.
Pretty sure their investment is capitalised into share capital so no possibility of repayment unless fraud of course.
These matters take yers in India as Drog stated above.
But who knows!!






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[rovers95]

Well spotted BB.















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[tonygreenbank]

The sooner they leave our club the better as far as I am concerned. They have been distant owners with no love of the club at all. Many of the family have never been near the place. It is just their pride that is keeping them here so they don’t lose face among their Indian business associates.
If Rovers did get to the Premiership then their debts are wiped off but they don’t seem to understand this. I can never fathom how this is a mystery to them.

 

[Drog]

So much negativity, isn't it time we replaced some with a bit of positivity? It's no wonder we struggle for crowds is it? Sometimes when im asked which club I support I almost feel ashamed to say Blackburn rovers.
I'm quite proud of the way the rovers appears to be working now tg. As far as I'm concerned this is now a good business plan based on having the only cat a academy not in the premier league.
Jack walker famously said when accused of chucking good money after bad when he bought the rovers and spent millions upgrading the club. "Blackburn rovers is a business and it has to be run as a business". The venkys screwed up badly at first but now it seems to me the club is able to live within its means. Obviously that means selling our best players but it's been like that for most clubs since the max wage was abolished. Just a pity now that many players prefer to run their contracts down and in doing so deny the
Club their transfer fee. That is something that needs to be addressed by the football authorities pretty quickly although I've no idea how it could be achieved.


(At this point I have to say that is incorrect due to the recent relegation of soton, lufc and Leicester who all support cat a academies.)

 

[tonygreenbank]

Sorry Drog it’s not a case of negativity or positivity I’m the most positive of people it’s a case of reality.
Why are you ashamed sometimes of being a Rover? I’m not. The most successful town club in history?
We were a model of how to run a football club in the 80’s 90’s but Venky’s have put paid to that. They never visit the ground or the town as far as I’m aware.
Their number one priority is to get Rovers back into the Premiership when their financial burden will be greatly eased. I see no sign of that happening in the short term.

 

[steve w]

Its not negativity.....its worry!
At best our owners are fools (which his hard to argue witth based on the evidence)
At worst they are criminals and this could lead to a very sticky future for Rovers

I have to say - I didnt realise the issue seems to be about £7m. I thought the figure was much higher, but it doesnt alter the fact that we just lurch from alarming news to more alarming news on a regular basis

On a positive note......at least there has been some kind of response from Ewood.......a vast improvement on the previous 10 years
It doesnt say much.....but it is an improvement

What you dont seem to get, is that the sensible prophecy, from the day we heard about the Venkys take over (This isnt going to end well!!) only ever seems to be close at hand

Never have I felt safe and secure and in good hands and that there isnt an alternative plan going on

 

[Drog]

Fact remains that they are / have been financially supporting the club. Whether or not they come to Ewood personally hardly matters except for the 'just stop oil' brigade. No doubt they'll have a dodgy box anyway.

 

[Drog]

Why are you ashamed sometimes of being a Rover? I’m not. The most successful town club in history?

Not ashamed, that's the wrong word.