The controversial Indian business tycoon, Dinesh Pandey, chairman of the SAMMAG and SOMAP groups made headlines in 2020 for his role in the ‘Bike Bot’ scam.
Since then, Dinesh Pandey and his immediate family members have spent the past 18 months being implicated in multiple scandals which involve fraudulent business activities.
Since Dinesh Pandey’s arrest by Indian authorities 2 years ago a flurry of scandals have polluted and devalued his empire. In May, media reports surfaced that Mr. Pandey was involved in several civil and criminal fraud cases as a defendant. The fabulously wealthy Mogul lives a lavish lifestyle with homes, assets and offices in London, Singapore, Amsterdam, Hong Kong, Columbo, New York and Istanbul – as well as a range of properties throughout India and Sri Lanka.
Among the latest news, Dinesh Pandey and his family now stands to lose a major multi-million USD investment in a group of hotels purchased in Sri Lanka.
In 2018 Mr. Pandey and his brother Pramod Pandey spearheaded the SOMAP Group’s takeover of the Sri Lankan based Anilana Hotels and Properties (ALHP) under shady circumstances. This included the personal involvement of Sri Lankan Defense Secretary, retired General Kamal Gunaratne who reportedly, “signed off” on the deal. SOMAP’s takeover price of Anilana Hotels was over $66 Million USD.
Dinesh Pandey is listed (according to the Wall Street Journal) as the “Chairman and Managing Director” of “Somap International Pte Ltd., Anilana Hotels & Properties Plc”.
Due to the massive outrage throughout Sri Lanka, which so far include protesters attacking the Presidential residence in Columbo which prompted the resignation and disappearance of President Gotabaya Rajapaksa, Pandey’s foreign investors are now growing increasingly worried.
Media reports have previously exposed a darker side to Mr. Pandey’s hotel deal in Sri Lanka. Allegations were made that the SOMAP Group’s takeover of Anilana Hotels “included dubious local financing and licensing renewals that were arranged by senior officers of the Sri Lankan military.
Sri Lankan protesters have been known to attack and burn down hotels, restaurants, tourist landmarks, government buildings and residences of the ruling elite during massive turmoil the country has suffered over the past few months.
Credible statements from former local employees and management of Anilana Hotels (a majority of whom are Tamil) confirm that a couple of key Anilana owned properties were being guarded by the Sri Lankan Army and that the Pandey family was paying for it. This includes the Anilana Hotel resort located in Pasikuda, a costal tourist resort town, with a majority Tamil population, located on the eastern central coastline of Sri Lanka. Several local Tamil employees confirmed in a recent media report on Dinesh Pandey’s association with the Sri Lankan Army.
Several employees of the Anilana Hotel in Pasikuda, who were afraid to give their names and speak to the media about this story did confirm that military personnel arrived at the hotel last month, removed their uniforms, and are now wearing civilian clothes.
Insiders claim the SOMAP chairman is coping with the criminal charges by tasking the Sri Lankan military to suppress and intimidate local Tamil employees to prevent burning down a Pandey owned hotel.
The 66 million USD that SOMAP Group raised for the purchase of the Anilana Hotels in Sri Lanka is now in jeopardy. According to the Financial Times, the publicly listed and traded hotel company has already lost 20% of its’ market value.
With the country in political turmoil, and according to a recent UN report over 6 million residents live in poverty, Dinesh Pandey is going to have a hard time preventing private and institutional investors from liquidating their holdings.
Although the names of Mr. Pandey’s investors in his Sri Lanka hotel acquisitions were never fully disclosed, one can safely assume the tycoon is purposely hiding their identities.
The Canadian banking group CIBC was reportedly a minority investor as was other US Investment firms. The status of the properties owned by Anilana Hotels, most of which are on beautiful coast lines is also in question- Local Tamil organizations are petitioning the government to return prime tourist properties that they claim was illegally taken from them during the civil war. The Anilana Hotel in Pasikuda (mentioned earlier) is a case in point. The resort town is Tamil populated and other hotels in other villages and towns will also be under legal attack once the government stabilizes.
To make matters worse for Mr. Pandey, the close association with top Sri Lankan military officers and his connection to the Laya Hotel Group in Sri Lanka which is owned fully by the Sri Lankan military has rattled his entire business footprint in Sri Lankan as the country goes into a free fall. A newly installed democratic government in Columbo will be a game changer for the local hotel industry. According to many Tamil residents, various land and property development are currently in litigation with locals claiming the property was stolen from them.
It is interesting to note that Dinesh Pandey refuses to speak to the media and is rumored to have recently arrived in Columbo for a short two-day visit to tidy up his affairs there. Many of his political and military allies in the Sri Lankan government have resigned and are fleeing the country. Meanwhile, several top officials including the former president have also gone into hiding.
The opposition political parties are currently involved in forming a new democratic government. All of this does not bode well for the SAMMAG and SOMAP groups, who are now standing on a multi-million USD loss that in practical terms is not recoverable. Perhaps it will be no surprise if Mr. Dinesh Pandey and his family members also go into hiding. They must be held accountable, and they have a lot to answer for.
