Darvesh Group Negative News Exposure

First Media Coverage

A damaging article about client was published on a news website
businessbenchmark.news. The news article was published on March 13, 2020 written by
CL Jose BENCHMARK, GULF AND ABROAD with the heading Darvesh group defaults
on close to AED1.5 bn loans with scores of banks? Yet another Indians-managed big
business group has failed in the UAE adding pain to its banking system.”

It carried details of supposedly bad loans by Darvesh group. The author claimed the
resources being close to the group. The article stated that though the group is
popularly known as ‘Darvesh Group’ bearing the family name of the promoters
including the chairman, Hassan Suleman Darvesh, no trade license has been registered
in that name, and on the contrary, all units in the group are individual stand-alone
entities.

Some of the group companies are Elegant Industries (in DIP but later moved to Dubai
Industrial City) doing fit-outs and interior decoration; Mega Star (Dubai Industrial City),
dealing in timber and general trading; Technovva (Kizad); Itos, dealing in plastic
packaging manufacturing (Jebel Ali Free Zone), to name a few major ones. The group
has a few manufacturing units in Oman where Darvesh used to be a name to reckon
with until two decades ago.

The story of the 100-plus-year-old Darvesh Group, a well-diversified business

conglomerate, spread over several countries, was doing rounds for contributing not
less than AED1.5 billion to the bad-loan books of about 30 banks in the country. If
market is to be believed, until a year back or little more, the group had loans valued at
AED1.3 billion from close to 30 banks.

Sources also added that apart from the bank loans, the company currently owes about
half a billion dirhams to various suppliers, and also to government and semi
government entities like DEWA, EPPCO, Etisalat, Dubai Investment Park (DIP), Dubai
Industrial City, KIZAD etc.
About the writer C L Jose

C L Jose had worked with Financial Express and Business Standard Mumbai covering
Banking and Stock markets until 1998. Later went to the GCC and worked with Times of
Oman, Gulf News, Emirates Business, together for about 17 years covering business
with focus on Banking and Stock Markets.
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Currently working with businessbenchmark.news, basically covering the business

developments in Kerala and the GCC From last three year and presently focused on
covering business developments in Kerala (India) and UAE, where he had spent almost
20 years covering markets and banking - breaking numerous financial stories for Gulf
News, Emirates Business, Business Weekly (owned by Business India Group but now
defunct) and Times of Oman

Mobile Number: +91 90480 21353 +91 70124 04134

Technical analysis the Geolocation of uploader

Location of the uploader: http://maps.google.com/maps?q=10.8779656,76.0749144

Overseas Negative News coverage

An announcement was carried out by Financial Times on the Same date on FT.com
Thearabianstories.com carried out story on the same day 25th January 2021 MUSCAT:
Oman’s top banks including Sohar International and Ahli Bank on Monday
disclosed millions of rials of exposure to Abou Nabil LLC, the flagship company
from the centenarian Darvesh Group.

In a statement disclosed to Muscat Securities Market, Sohar International said “It has a
legacy outstanding direct exposure to Abou Nabil LLC to an extent of OMR 10 million,
equivalent to circa 0.28% of the Bank’s total assets.”

The bank also said it has an outstanding direct exposure to Technova LLC, an associate
company of Abou Nabil LLC to an extent of OMR 3.921 million. “Accordingly, Bank’s
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aggregate exposure to the group as on December 31, 2020 aggregating OMR 13.921
million equivalent to circa 0.38% of the Bank’s total assets,” Sohar International said.
Another website, thearabianstories.com also

Meanwhile, Ahli Bank in its disclosure said it had extended credit facilities of OMR
3.711 million to Abou Nabil LLC and OMR 2.588 million to Gulf Star LLC, which is
guaranteed by Abou Nabil LLC. National Finance also said it has a total exposure of
OMR 6.342 million to Darvish Group.

Sohar International in its statement said the bank is “ exploring all the options and the
measures for recovering its exposure, including enforcement of the charged securities
and the partners guarantees.”

A site called omanobserver.com carried the news on 26th January 2021 with the title
“Omani lenders report RO 39 million in total exposure to beleaguered Darvesh
Group” repeating the same details.

Coverage in Indian Media

On 15th March 2020 Cinebuster.in, published an article with the title ‘DARVESH
GROUP DEFAULTS ON CLOSE TO AED 1.5 BILLION (Rs 3000 CRORE) BAD LOANS
WITH SCORES OF BANKS?’

The article was viewed by around 631 readers and publication place was shown as
Dubai. The content of the article was same as the news article carried out by
businessbenchmark.news.

It is noticeable fact that the article by businessbenchmark was published on 13th march
2020 and by cinebuster which is an entertainment website and rarely publishes this
type of article. Cinebuster also posted the same post on their Facebook page having
more than 25000 followers.
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On 12th December 2020, The Central Bureau of Investigation (CBI) on Friday carried out
searches at seven locations in Gujarat, Karnataka and Maharashtra in connection with two
separate bank fraud cases. The news article stated that the CBI alleged that Technova Plastic
Industries Pvt Ltd (TPIPL), its managing director Ahsan Hassan Darvesh, company's
director Talib Hassan Darvesh, Assistant Director Abdul Habib and unknown others
cheated the bank to the tune Rs 57.28 crore. The CBI registered a case on December 2.
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The same news was also published by other news websites like, bhaskarlive.in, socialnews.xyz,
yespunjab.com, pune.media, newkerala.com, sify.com and thehansindia.com

Employee Reviews & Social Media Coverage

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Important Official Bank Documents

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On 25th January 2021, Bank Muscat officially posted a letter regarding total exposure
of OMR 3.1 Million to Abou Nabil LLC, related to Darvesh Group.

The same letter was also published by London Stock Exchange on their official website
londonstockexchange.com Other financial news websites like markets.ft.com,
mubasher.info too published the same letter on their websites.

Annexures:
1. Bank Muscat official letter
2. Letter posted by London Stock Exchange on their website

References:
1. https://www.msm.gov.om/MSMDOCS/Images/NewsDocs/BKMB-25002021-21.pdf
2. https://www.londonstockexchange.com/news-article/BKM/direct-and-indirect-
exposure-toabou-nabil-llc/14838066
3. https://businessbenchmark.news/specials/benchmark/
4. https://www.cinebuster.in/darvesh-group-defaults-on-close-to-aed-1-5-billion-rs-
3000-crore-bad-loans-with-scores-of-banks/
5. https://www.omanobserver.om/omani-lenders-report-ro-39-million-in-total-exposure-
to-beleaguered-darvesh-group/
6. https://www.thearabianstories.com/2021/01/25/omans-top-banks-financial-
institutions-reveal-exposure-to-abou-nabil/
7. https://bangaloremirror.indiatimes.com/bangalore/crime/cbi-raids-in-city-over-rs-57-
cr-bank-fraud/articleshow/79689339.cms
8. https://www.socialnews.xyz/2020/12/11/cbi-raids-7-locations-in-gujarat-maharashtra-
karnataka-in-2-bank-fraud-cases/
9. https://yespunjab.com/cbi-raids-7-locations-in-gujarat-maharashtra-karnataka-in-2-
bank-fraud-cases/
10.https://www.thehansindia.com/news/national/cbi-raids-7-locations-in-gujarat-
maharashtra-karnataka-in-2-bank-fraud-cases-661387
11.https://pune.media/cbi-raids-7-locations-in-gujarat-maharashtra-karnataka-in-2-bank-
fraud-cases/
12.https://www.newkerala.com/news/2020/214587.htm
13.https://markets.ft.com/data/announce/detail?dockey=1323-14838066-
546ISLBRQSA0KJFKTU9S0RDKFO
14.https://www.glassdoor.co.in/Reviews/Abou-Nabil-Reviews-E967881.htm?
filter.iso3Language=eng
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