The man who lost $110,000 to a show organiser says that the latter could have been easily prevented from leaving the country if the New Zealand Police had acted on his complaints.
Agastya Pesara, who was stated to be the main person behind the Bollywood Show ‘Temptation Reloaded 2013,’ held at Vector Arena in Auckland City on October 4, 2013 is reported to have left New Zealand after failing to repay hundreds of thousands of dollars which he had allegedly borrowed from many people in this country.
Hindi film stars Shahrukh Khan, Madhuri Dixit, Rani Mukherjee, Jacqueline Fernandez, and Indian rapper Yo Yo Honey Singh were among the main participants in the show, which was watched by about 7500 people.
Police unhelpful
Ghouse Majeed, who has a number of worthless, bounced cheques issued by Agastya, said that he had filed a petition to the Auckland City District Police in the first instance stating that Agastya was not responding to his phone calls and text messages, that his whereabouts were not known and that he may be attempting to leave the country.
“Thereafter, I went to the Police at the Auckland International Airport, provided the flight details of Agastya and requested suitable action. He was actually due to leave New Zealand for Australia the next day. They did nothing and now the man has gone. I felt that the police allowed him to escape right in front of my eyes,” Mr Majeed said.
Indian Newslink understands that the Police cannot and will not take action ‘unless a crime has actually occurred,’ and that bouncing cheques were a civil matter that should be pursued in a court of law. However, legal experts were of the view that borrowing money from people with no intention of returning it would tantamount to criminal intent and hence the Police have a duty to protect citizens from such fraudsters.
Mr Majeed was upset that despite repeated requests the Police refused to take prior action. He said that he was aware that prior to Agastya’s ‘escape,’ the Police had arrested a few others accused of similar offences based on complaints from their respective creditors. He wanted the Police to explain how such a serious lapse occurred in his case.
Planned cheating
He explained in greater detail how he was duped by Agastya.
“I never knew this person prior to July 23, 2013, the day another friend introduced him to me. Agastya was in tears and appeared to be in a state of distress. He told me that he has to make a payment of $80,000 to Shahrukh Khan the following day, failing which the show will be cancelled and that he would become bankrupt. He told me that he would lose more than $500,000 if Shahrukh Khan did not perform in New Zealand. He appealed to me to help him as an Indian to ensure that the show is held. He promised to repay the amount on or before August 10, 2013. I did not have such a huge sum but borrowed from my bank against my mortgage. I remitted the money to his bank account through my bank. I thought that he was a genuine person in genuine need,” Mr Majeed said.
Agastya did not keep up his promise. Instead, he returned to Mr Majeed for another loan of $50,000, stating that tickets sale was slow and that he had to step up marketing efforts for the show.
Second loan
“Agastya appeared sick when he visited me for the second loan. He said that he needed the money urgently. He promised to pay me the money immediately after the show. I did not have the amount that he requested. I raised $20,000 and gave him the money thinking that I was helping a young man who was in serious trouble. I also thought that by giving him $20,000, I would be able to get back the entire amount of $100,000. He gave me a number of cheques totalling $110,000. He has run away. I am left with nothing except a legally enforceable agreement, bounced cheques and betrayal,” Mr Majeed said.
He said that having attended the show on October 4, he believed that Agastya would have collected more than enough cash from sale of tickets and sponsorship. He said that he was sure there were more than 7500 people at Vector Arena.
“I know that he borrowed various sums of money from various other people, all of which will amount to a very large sum of money. Agastya would have also made a substantial profit from the show. I have suffered severe financial stress. I have taken a bank loan to pay the interest. I am now under severe financial stress,” Mr Majeed said.
Bankruptcy proceedings
As reported in our June 1, 2014 issue, Eftpos Systems Limited Director Atul Lal filed court proceedings against Agastya and bankrupted him.
A notification published in the New Zealand Herald on May 19, 2014 announced the appointment of Digby John Noyce, Chartered Accountant (Auckland) as liquidator of AReddy Private Limited following an order issued by the Auckland High Court.
The announcement also gave Notice to creditors to Prove Debts or Claims Notice to the liquidator on or before June 16, 2014.
Mr Noyce told Indian Newslink that anyone who has lent money to Agastya personally or to his company AReddy Private Limited can contact him anytime (even after June 16) with supporting documents.
“I will provide more details as they come to hand,” he said.
Creditors may direct enquiries to Digby John Noyce at RES Corporate Services Limited PO Box 301890 Albany 0752 Auckland; Phone: (09) 2805900; Fax: (09) 4430537.
Next Issue: Some show organisers evade paying GST and other taxes
