Rovers have issued an official statement following speculation over the club’s financial situation.
On Monday, the Enforcement Directorate confirmed that nine properties in India owned by parent company Venkateshwara Hatcheries Pvt Ltd had been seized under the foreign exchange law following alleged illegal foreign remittances since 2011.
The payments were made to the company’s subsidiary, Venky’s Overseas Limited, and were “declared to the Reserve Bank of India as agriculture and mining (rearing of ducks, hens etc)”.
A statement from the Enforcement Directorate alleged: “VHPL remitted huge funds in the guise of equity infusion. However, no such business activity was ever initiated by VOL even after lapse of more than 11 years from its incorporation.”
It continued: "Investigation established that VHPL had no intention to conduct bonafide business through its subsidiary VOL and it was created as a front to purchase an immoveable property in the UK for the ultimate enjoyment by the directors, employees and family member of VHPL.”
The property in the UK mentioned is named “Alexander House” and is 90 acres in size.
These allegations had raised concern among some supporters in regard to what it meant for the football club and its financial situation.
Rovers’ statement read: “In response to recent speculation regarding its finances, the club wishes to reiterate that it has received all the necessary undertakings from the parent company, VHPL, as it always has done, to be able to meet its financial obligations for the foreseeable future, in satisfaction of all the regulatory requirements in this regard.”
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