Harry Hassomal Mohinani, a Chinese entrepreneur from London, has been granted permission by the Supreme Court’s Bankruptcy Division to bring an action on behalf of Bay Capital Investments Ltd (BCI). This, in order to recover losses of 21.7 million pounds, suffered by this company. This was incorporated in Mauritius and has been authorized by the Financial Services Commission (FSC) to act as a Collective Investment Scheme.
Also, the businessman was authorized to initiate proceedings against the directors or administrators of the said company, for transactions related to the Park Chinois Mauritius (PCM) project.
According to Harry Hassomal Mohinani, the directors of BCI failed in their fiduciary duties. He points to the head of investment, Siddharth Dinesh Mehta.
Harry Hassomal Mohinani says he invested £1.5m in BCI, which held a Category 1 Global Business License for Park Chinois Mauritius, a company incorporated in Mauritius
Prestigious restaurant
According to the entrepreneur, he was invited, along with other investors, to finance the PCM project in January 2013. Project which consists of the advent of a modern and authentic Chinese restaurant located in the prestigious district of Mayfair in London and backed by renowned restaurateur Alan Yau. The restaurant opened in November 2015 and the cost of the project has risen from £17.4m to around £39m.
Thus, according to Harry Hassomal Mohinani accuses Siddharth Dinesh Mehta, and others of having failed to make a correct estimate of the costs of the project. Also, he states that the entire restructuring plan was carried out for the sole purpose of allowing Siddharth Dinesh Mehta to take over the project.
In her verdict, Judge Jane Lau Yuk Poon ruled that “although the investors were at all times informed of what was planned to be done to restructure and raise capital, the evidence on the record shows that Siddharth Dinesh Mehta was not acting in the best interests of the defendant company (Editor’s note: BCI), but for his own personal interest”.
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