Bankim Brahmbhatt, an entrepreneur of Indian descent, is reportedly at the heart of an enormous loan fraud totaling over $500 million. This alleged scheme has caused significant financial distress for major lenders, including the private-credit division of BlackRock, which are now struggling to recoup their investments. The complexity of the alleged fraud has led to its characterization as “breathtaking.”
Brahmbhatt is known to control two less prominent telecom firms, Broadband Telecom and Bridgevoice, through his Bankai Group. The Bankai Group advertises itself as a premier provider of telecom infrastructure and connectivity services worldwide. Brahmbhatt’s title within the Group is listed as President and CEO. Publicly available information about Brahmbhatt is minimal, and a LinkedIn profile that appeared to be his has since been deleted.
Lenders, including the private-credit firm HPS Investment Partners, which was recently acquired by BlackRock, have lodged complaints against Brahmbhatt. They allege that he established a labyrinthine network of financing entities, such as Carriox Capital and BB Capital SPV, to secure hundreds of millions of dollars in loans. The central accusation is that since 2018, Brahmbhatt has systematically manufactured false customer invoices and agreements. These non-existent accounts receivable were then allegedly used as collateral for loans that amassed to over $500 million. Lawyers representing the lenders stated that Brahmbhatt created an “elaborate balance sheet of assets that existed only on paper.” Furthermore, their investigation reportedly uncovered that every customer email submitted over the past two years was fraudulent. The lenders also claim that Brahmbhatt diverted the pledged assets to offshore accounts, first in India and later in Mauritius. Brahmbhatt’s legal representative has publicly refuted these fraud allegations.
The financial unraveling occurred rapidly. Brahmbhatt’s associated telecom companies filed for bankruptcy in August. He personally filed for Chapter 11 bankruptcy on August 12, the same day his companies initiated their bankruptcy proceedings. Two financing entities, Carriox Capital II and BB Capital SPV, also filed for bankruptcy protection. Creditors believe Brahmbhatt is currently in India. Representatives from HPS visiting his former Garden City offices in July found them deserted and locked.
Luxury vehicles were seen outside a residence believed to be Brahmbhatt’s, but his business suite remained sealed. BNP Paribas is rumored to have provided debt financing for the loans originated by HPS Investment Partners, though the bank has not offered any official statement.