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New Delhi: Can we say we have an NRI version of Nirav Modi? An Indian-origin CEO has been named in a 500 million dollar scam that allegedly targeted the world’s largest investment group, BlackRock’s private-credit investing arm, and other lenders. Reports say BlackRock’s private-credit unit, HPS Investment Partners, is now trying to recover the money after falling victim to what it described as a “breathtaking” fraud.
Bankim Brahmbhatt, owner of US-based Broadband Telecom and Bridgevoice, has been accused of forging accounts receivable that were supposed to be used as loan collateral. According to The Wall Street Journal, lenders filed a complaint in August accusing him of pledging non-existent revenue streams as collateral. His firms have since filed for Chapter 11 bankruptcy, collectively owing more than half a billion dollars.
The alleged loans were financed through BNP Paribas, which partnered with HPS to fund Brahmbhatt’s telecom ventures. HPS first lent money to one of his companies in September 2020, eventually raising its exposure to 430 million dollar by August 2024. According to WSJ that BNP Paribas financed nearly half of these loans through two HPS credit funds.
The lawsuit claims that Brahmbhatt’s companies owe an estimated 500 million dollar. During verification, HPS reportedly discovered that loan funds were diverted to offshore accounts in India and Mauritius. The revelation has drawn attention to the fast-growing private-credit market, which is increasingly facing concerns over fraud and transparency.
In July, HPS staff discovered suspicious email addresses from supposed clients, raising alarms. When confronted, Brahmbhatt denied all allegations and later stopped responding altogether.
When investigators visited his New York office, it was found locked and vacated, while his Garden City home also appeared empty. Luxury cars, including a Tesla and a Porsche, were found parked in the driveway.
Sources say Brahmbhatt may have left the US for India, though his lawyer insists that the claims are unfounded.
