Exclusive: Ganesh Benzoplast grapples with unauthorised bank account case involving subsidiary

A case has surfaced involving an unauthorised opening and operation of a bank account in GBL Chemical Limited, a wholly-owned subsidiary of Ganesh Benzoplast.  

In a regulatory filing, Ganesh Benzoplast, a Mumbai-based supplier of additives to automotive segments, disclosed that management has been apprised of unauthorised borrowings, wherein the company is listed as an alleged co-borrower in the unauthorised bank account. The company was made aware of this development last evening.

While the precise extent of the financial implications remains under assessment, the company currently estimates the involved amount to be approximately Rs 20 crore.

In response to these developments, the company has initiated a thorough investigation and is pursuing necessary legal avenues. Furthermore, Ganesh Benzoplast has promptly communicated with the relevant bank, urging the immediate freezing of operations within the implicated bank account.

The company added that in a bid to uphold transparency and adhere to robust corporate governance practices, Ramakant Pilani, the Chief Executive Officer responsible for overseeing the affairs of both the chemical division of the company and its wholly-owned subsidiary, GBL Chemical Limited, has tendered his resignation. The company has accepted Pilani's resignation with immediate effect.

Beyond its core business of lubricant additives, Ganesh Benzoplast is diversified across various sectors, including infrastructure, chemicals, infrastructure logistics systems, and engineering procurement and construction (EPC).