Who is Bankim Brahmbhatt? The Indian origin man allegedly behind $500 million loan fraud in US

Bankim Brahmbhatt, a US-based telecom entrepreneur of Indian origin, has been accused of orchestrating a large-scale loan fraud worth more than USD 500 million, according to a report by The Wall Street Journal (WSJ).

Bankim Brahmbhatt serves as the President and CEO of the Bankai Group, according to a July social media post. Through the Bankai Group, he owns two lesser-known telecom companies, Broadband Telecom and Bridgevoice. The group presents itself as a global provider of infrastructure and connectivity solutions, offering services to telecom operators at all levels around the world.

Allegations of fabricated revenue and inflated loans

Brahmbhatt, the owner of Broadband Telecom and Bridgevoice, allegedly created fake customer accounts and receivables to secure massive loans from American lenders. Among these lenders is HPS Investment Partners, an investment firm backed by global asset manager BlackRock.

According to the WSJ, lenders filed a lawsuit in August alleging that Brahmbhatt misled them by pledging non-existent revenue streams as collateral for loans. His companies have since filed for Chapter 11 bankruptcy protection, collectively owing more than half a billion dollars.

HPS first lent to one of Brahmbhatt’s companies in September 2020, expanding its exposure to USD 385 million by early 2021 and USD 430 million by August 2024. Sources cited by WSJ revealed that BNP Paribas financed nearly half of these loans through two HPS-managed credit funds.

Broader concerns in private credit market

The case has raised alarms about risks in the rapidly growing private-credit market, where loans are often backed by projected revenues or business assets. Experts note a recent increase in fraud allegations within this sector, citing similar bankruptcies at First Brands and Tricolor, both accused of misusing such financing structures.

Bankruptcy and disappearance

Brahmbhatt filed for personal bankruptcy on August 12, the same day his companies sought Chapter 11 protection. Under US law, this allows firms to reorganise operations while negotiating repayment plans with creditors.

When a visit was paid to Brahmbhatt’s Garden City, New York office, it was found locked and deserted. Neighbours and nearby tenants said they had not seen any activity there for weeks. A visit to his listed residence also went unanswered.

Uncertainty over whereabouts

People familiar with the case told WSJ that HPS fears Brahmbhatt may have left the US for India. His lawyer, however, has denied all allegations, calling the lawsuit’s claims “unfounded.”