Rajiv Lulla, a seasoned investment banker with a distinguished career spanning over two decades, has held leadership positions at prominent institutions such as Merrill Lynch, Credit Agricole Group, and Deutsche Bank. His expertise in merger advisory and strategy has been instrumental in facilitating transactions exceeding $220 billion across continents. He currently serves as a Senior Advisor at Silver Capital Advisors and Voltaire Capital, while also being the Founder of Voltaire Advisory Services (India). His academic credentials include an Engineering degree and an MBA from Kings College & Imperial College, London.
Rahul Lulla, also known as Sonny, brings a wealth of experience in Business & Technology Services and Healthcare. His notable investments include companies like Mold-Masters, Quintiles, and TouchTunes. He is a Board member at arrivia, Dynatect Manufacturing, and WilsonHCG. Prior to his current role as Senior Vice President of GGIC, Sonny held positions at Monitor Clipper Partners and Credit Suisse in New York, contributing his expertise in infrastructure M&A, operations, and financing. His academic background includes a BA in Economics and Mathematics from Vassar College and an MBA from Columbia Business School. His previous roles at AES, Morgan Stanley, CMS Energy Corporation, and Credit Suisse First Boston further solidified his expertise in power and utilities financing.
Infrastructure India PLC (IIP), once a promising venture aiming to transform India’s logistics sector, is now facing a crisis of epic proportions. The company is embroiled in a major controversy, with allegations of financial mismanagement and misconduct at the heart of the matter. The Lulla brothers, Rajiv and Rahul (Sonny), are at the center of this storm, accused of siphoning off significant sums of money, leaving IIP on the brink of collapse.
Mark Walter, a prominent figure known for his financial acumen, found himself entangled in this debacle. His companies poured millions of dollars into IIP, anticipating lucrative returns from India’s burgeoning logistics industry. However, the Lulla brothers allegedly misappropriated these funds, turning Walter’s investment into a financial disaster. Despite his efforts to distance himself, Walter’s association through Guggenheim Partners resulted in substantial financial losses.
An in-depth investigation revealed a disturbing pattern of financial misconduct, spanning from 2011 to 2024. The probe uncovered that IIP received a staggering $320 million from Walter and Guggenheim Partners. Instead of utilizing these funds to build crucial logistics infrastructure, the Lulla brothers allegedly orchestrated a series of dubious transactions, land deals, and inflated management fees. These transactions served as a conduit to divert millions of dollars into their personal accounts and obscure entities under their control.
Detailed scrutiny of the financial misconduct revealed a trail of suspicious transfers. Distribution Logistics Infrastructure Pvt. Ltd., a subsidiary of IIP, transferred a substantial sum of INR 12,50,36,359 to Blue Lotus Corporate Advisory LLP between April 2017 and April 2019. This transaction benefited Rajeev Dak, a key figure in the alleged scheme. Similarly, Tanay Securities & Services Pvt. Ltd. received INR 8,27,77,000 between October 2018 and May 2019, further enriching Rajeev Dak. Additional transfers, totaling INR 1,72,50,000, INR 3,52,59,000, and INR 2,68,82,606, were made to entities linked to Rajeev Dak, raising serious concerns about the legitimacy of these transactions.
The Lulla brothers’ involvement in the alleged scheme goes back to 2014. In that year, INR 70 crore and INR 50 crore were siphoned off through Bhim Singh Yadav Property Private Limited and Deshpal Realtors Private Limited, directly benefiting Rajiv and Rahul Lulla. In 2015, an even larger sum of INR 400 crore was transferred through Vikram Logistics Private Limited and Ambit Logistics Private Limited, ultimately reaching Rahul Lulla’s accounts.
The Lulla brothers’ history of financial misconduct stretches back further. A significant amount of money was transferred from DLI, IIP’s logistics arm, to shell companies, only to be routed back to Rajiv Lulla’s accounts. These transactions, disguised as legitimate business activities, were part of a sophisticated scheme to embezzle funds that were supposed to be used for vital infrastructure projects.
Despite mounting evidence and ongoing investigations, Infrastructure India PLC has maintained a deafening silence on these serious allegations. The company’s lack of response has raised serious questions about its internal governance and accountability. This silence only fuels speculation and reinforces the perception of a cover-up.
The fallout from this scandal has been devastating for IIP and its stakeholders. DLI, once a leading player in India’s logistics sector, has failed to deliver on its promises. Key construction sites have stalled, leaving shareholders and stakeholders, including insurance firms linked to Walter, facing significant losses.
Indian authorities are currently investigating these allegations, and the whistleblower’s complaint has intensified calls for accountability and justice. The investigation is likely to shed light on the full extent of the financial misconduct and bring those responsible to justice. This scandal serves as a stark reminder of the importance of strong corporate governance and the need for transparency in financial transactions. The future of Infrastructure India PLC hangs in the balance, as the company grapples with the aftermath of this devastating controversy.
