Rosy Blue reorganized its offshore network after the Panama exposure
It has been featured in every offshore leak since HSBC records in 2015, and Rosy Blue, one of the world’s largest diamond trading companies, is also featured in the Pandora Papers which reveal details of its current offshore investments up to in 2020.
The due diligence files of the Asiaciti Trust, Singapore, relating to the creation of new entities are mainly for Dilip Mehta, the youngest of the three Mehta brothers and CEO of Rosy Blue in Belgium (he left India in 1970) . Asiaciti classified him in the PEP (Politically Exposed Person) and âhigh riskâ client category.
In previous offshore investigations, it was shown that five members of the Rosy Blue family had deposits of $ 53.63 million in HSBC Geneva bank (Offshore Leaks, 2015); in the Panama Papers (2016), members of the Rosy Blue family were named as beneficiaries of 24 offshore companies established in tax havens such as BVI, Seychelles and Mauritius.
The latest Pandora records show a wave of continuing education from offshore companies in tax havens such as the Cook Islands and Guernsey, the Channel Islands. The reshuffle of Rosy Blue’s assets in tax havens is also evident, mainly in 2017, shortly after the Panama Papers exposure.
The largest data set relates to the formation of the Elmas Purpose Trust in the Cook Islands in 2017, with a Hong Kong holding PTC (private trust company) called Elmas Company Limited.
There is also the creation of Sparkle Purpose Trust to own shares of a Hong Kong PTC called Sparkle Holding Limited. The approximate value of the assets to be transferred to the Sparkle Trust is $ 15 million.
There is a complex structure around the Elmas Trust of which Dilip Mehta is the economic constituent.
Its organizational chart shows Asiaciti as its trustee and its donor and executor is British national Karl French, who is described as a consultant for the Mehtas.
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The January 2017 emails show that setting up the Elmas structure was a decision of the Rosy Blue family to move their PTC structure out of Singapore (using the same directors) and transfer
assets from their previous Guernsey and Jersey trusts.
Following the establishment of the Elmas structure, representatives of Dilip Mehta were in communication with Asiaciti Trust for the sale of a property owned by a Rosy Blue company without any details on its location or value.
The files list Dilip Mehta as a PEP “by association” in various places since his older brother, Harshad Mehta, was the honorary consul of Armenia in Mumbai until 2014.
In addition, Asiaciti has classified Dilip Mehta as âhigh riskâ due to the nature of his business (diamond trading) and the countries he trades in including United Arab Emirates, South Africa, Israel and India.
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It is mentioned in emails dated January 2018 that although Asiaciti’s compliance teams did not find any negative media records for Dilip Mehta, there was “unfavorable media” on his brother Harshad Mehta going back to 2011.
The Sparkle Trust and the company were also created in 2017 with a structure similar to the Elmas entities. Again, Dilip Mehta is the economic constituent of the trust, and Karl French is presented as its executor and contributor of assets.
There are also documents from two former Rosy Blue Trusts operating out of Guernsey, which by 2017 are administered by Asiaciti on the header of Elmas Hong Kong limited. The first is a Guernsey entity, The Veer Trust, created in 1999. It designates Dilip Mehta as beneficiary and settlor.
The second is Beech Settlement, also owned by Rosy Blue, and incorporated in Guernsey in 2004. Its current directors are listed as Elmas Hong Kong.
Dilip Mehta is depicted as the protector of the beech colony and Viraj Russell Mehta as the colonizer. Viraj is the son of Dilip Mehta’s nephew, Russell Mehta. An address in Dubai is listed for him in the documents.
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The latest 2020 information in the data relates to a company of BVI Kilian Holdings Limited. Along with Dilip Mehta, Viraj Russell Mehta is also its shareholder. A resolution from Kilian Holdings Limited dated March 4, 2020 shows that Dilip Mehta has been appointed director.
When contacted, Dilip Mehta told The Indian Express: âI have been a Belgian national for several decades and none of the topics you have covered relate to India or the violation of laws in India or any other jurisdiction. . “
Any restructuring, he said, is part of “internationally accepted succession planning for a person who has assets in multiple jurisdictions.” No member of my extended family living in India has any interest whatsoever with any of the entities examined and researched by you, and these entities have no connection, economic or otherwise, with India and are not under any Indian law. Rosy Blue India has no connection with the entities you refer to. As stated earlier, I am a foreign national just like Viraj. “