Gurpreet Gill Maag, a former Indian model-turned-investor, has filed a legal challenge in London's High Court, seeking millions of dollars in damages from Indian Premier League (IPL) founder Lalit Modi for claimed deception and breach of contract. Judge Murray Rosen QC is presiding over the trial, which began this week in the Chancery Division, to investigate if Modi used misleading statements to acquire funding for a global cancer treatment programme that began in April 2018.
Modi has disputed the allegations in writing and is likely to make oral arguments throughout the trial to refute them.
According to court filings, Maag's special purpose vehicle (SPV) Quantum Care Ltd was pitched an enticing investment offer for Modi's specialized cancer treatment company Ion Care at a meeting at the Four Seasons Hotel in Dubai.
"In summary, the Maags' (Gurpreet and husband Daniel Maag) evidence is that during the meeting, Mr. Modi informed them that a number of well-known and influential individuals had agreed to act as 'patrons' of Ion Care, had agreed to participate in its management (as 'leaders'), and had also made substantial financial commitments to the business, amounting to approximately USD 260 million," the court was told.
"Further, the Maags say Mr. Modi told them that a number of influential individuals and celebrities had agreed to act as ‘brand ambassadors' for Ion Care." Maag, who is located in Singapore, was encouraged to invest in a first "friends and family round" of fundraising for USD 2 million after becoming socially acquainted with London-based Modi. On November 14, 2018, her company Quantum Care invested USD 1 million, while the remaining USD 1 million was not invested because Ion Care's business never got off the ground.
Maag, on the other hand, claims that this resulted in losses for her because she was unable to invest the money in other ventures.
Her lawyers said, "Quantum alleges in these proceedings that the representations made by Modi during the April 2018 meeting were false and that he knew they were false or was reckless as to whether they were false.”
According to court documents filed on Modi's behalf, the Ion Care firm - which provides cancer treatment based on a specific technology - was formed after he provided therapy to his wife, Minal, who was diagnosed with cancer and died in December 2018.
While the company did not flourish, he emphasizes that the business strategy or technologies upon which it was built were not "misrepresented."
Regarding the charge that his investment pitch contained deceptive representations, Modi denies it. “indicative and aspirational – a sketch of an idea – and certainly not intended to be an authoritative catalogue of individuals who had signed up to represent Ion Care”.
He denies making the categorical statements that were claimed to have been made orally. His point is that he was speaking with a large number of possible investors, many of whom had expressed interest, and that he was just indicating the level of interest and its source.
The purpose of the trial, which is expected to go into next week, is to find "causation," with the quantification of any damages to be dealt with at a later stage.
Gill's Quantum Care is seeking recovery of the remaining USD 800,000 plus interest on its November 2018 investment in Ion Care.
Quantum also seeks "significant sums" in respect of "consequential damages," or the return the firm would have gotten on investments it would have made with the cash available to it if the alleged misrepresentations had not occurred.
Modi moved to London from India in 2010, amid scandals and controversies surrounding the IPL cricket tournament.
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