Looters of the Indian Banks

A willful defaulter, Billionaire Mohinder Singh Narula's wife Surina Narula seen with Queen Elizabeth II (File picture)

If this Willful Defaulters list doesn’t make you angry, it is unlikely that you will get bothered about any corruption in the country.

Taking loans above to the tune of Rs 20 crore, around 626 companies have looted approximately Rs 45,000 crore from Indian Banks.

Some 40 banks who gave loans to these companies (though some of the company names are repeat offenders included to highlight the bank names)  have drawn a list of willful defaulters and submitted the list to the Reserve Bank of India. The central bank has forwarded the list to the Finance Ministry. Ironically, it is unlikely that the banks would get anything worthwhile back. The money is as good as gone. Last year, the Finance Ministry infused Rs 88,000 crore into the banking system.

The big buck willful defaulters, of course, include names like the king of Good times Vijay Mallya, diamond merchants Jatin Mehta, builders like Vijay Chaudhary of Zoom Developers, industrialist Nitin Kasliwal of S Kumars’ fame or Jains of Surya Vinayak Industries, or the Birlas. This list contains the names of the country’s biggest fraudsters. Though there could be some genuine case of bad business but mostly those who have taken loans with an intention to cheat, leave little or no amount for recovery.

Nevertheless, the list of Willful Defaulters is an amazing mix from Vikas Puri in Delhi to Nariman Point in Mumbai, enterprising businessmen have swindled the system. A business running from a cabin in Habib Complex in Chennai has managed to swindle Rs 109 crore from two banks.

Some companies like Uniworth Ltd, the directors change taking loans from different banks, in some occasions one common director is linked and in some companies, directors have remained the same but companies names have changed like with Pravin Parekh and Damayanti Parekh who have taken Rs 30 crore loans from Axis Bank using two companies- Parekh Gold House Pvt. Ltd. and Khetalaji Gold Pvt. Ltd.

Some big farudsters – S Kumars Nationwide

Into luxury suit business, S Kumars’ was much talked about for stitching suits for former US President Barack Obama for $119 million. But they were on the wrong side of the law. S Kumars  Nationwide’s Nitin Kasliwal kept taking loans from banks without intention or ‘business acumen’ to repay. Nitin acquired US brand Hartmarx and roped in Bollywood superstar Amitabh Bachchan to promote Reid & Taylor suitings. The company was making profits to tune of Rs 470 core till 2009. But they say economic slowdown and cut down on luxury spends by consumers led to the downfall of the company. S Kumars had piled up Rs 4,500 crore debt to over 100 banks. When the banks raised an alarm, the matter was highlighted.

The Bombay High Court ordered its liquidation and proceedings have been going on since 2016. Two banks have still listed Rs 370 crore as default.

Biotor Industries Limited

Interestingly, the Willful defaulters’ list starts (second name) from Biotor Industries Ltd and ends with the same company. The company has taken a loan from Allahabad Bank of Rs 50 crore and from Yes Bank of Rs 2.17 crore. Biotor has also taken the loan of Rs 27.83 crore from IndusInd Bank and Rs 99.81 crore loan from the Oriental Bank of Commerce. The directors of the company are Bharat Kumar Mangaldas Kapadia, Rajesh Mangaldas Kapadia, and Dinesh Ranchhodas Kapadia.

In addition, the company has taken Rs 38.17 crore from State Bank of Hyderabad. In this loan, apart from the Kapadia, three more directors Anupam M Shukla, Yusuf Iqbal Yousuf, Dr. Ashok S Kolaskar are also listed. The company, formerly named as Jayant Oil & Derivatives Ltd, has taken another loan from State Bank of India to the tune of Rs 100.46 crore and a loan of Rs 52.2 crore from the State Bank of Travancore taking the total amount to Rs 370.66 crore.

The company operates from 13 Sitafalwadi Dr. Mascarenhas Road Mazgaon in Mumbai. The directors are operating at least 10 more companies from here which have capital ranging from Rs 10 lakh to Rs 2.5 crore indicating a good health of the group of companies. However, ED three years ago had attached their properties in Mumbai and Vadodara and according to sources have taken loans over Rs 500 crore and the total fraud could be to the tune of Rs 1,500 crore or more.

Willful default Amount

Bank of Maharashtra                                               27686.00

Central Bank Of India                                              54926.00

Export-Import Bank Of India                                   10773.13

Oriental Bank Of Commerce                                    14581.00

Punjab National Bank                                              90037.06

State Bank Of Hyderabad                                       2146.00

Union Bank Of India                                               26415.40

Punjab National Bank                                             74798.36

                                                                          Amount in Lakhs*

 

Zooming away to glory

Tagged as one of the biggest bank fraudsters in the country, Zoom Developers Private Limited is omnipresent defaulters and figures prominently on the list. The Indore-based company with a paid-up capital of Rs 100 crore has taken loans worth Rs 1889.91 crore from 14 banks.

Last year, the Enforcement Director arrested the CMD Vijay Chaudhary though a partner in crime, Behari Lal Kejriwal is out. The agency attached assets, including 1,280 acres in California in the money laundering case. Choudhary has formed almost 485 companies in the name of himself, his family members and employees and floated 15 companies in the United States, three in the United Kingdom, three in Switzerland, seven in Singapore, four in Germany, nine in the United Arab Emirates, two in China and two in Zimbabwe, apparently for the purpose of money laundering,” an official was quoted when Chaudhary was arrested.

In 2008, this company signed a MoU with the Himachal Pradesh Government for establishing 1296 Common Service Centres in Kangra Division. The company is under liquidation.

Location – Indore

Total Fraud –                                 Rs 2,500 crore

Willful Default                              Rs 1889.91

Directors – Vijay Choudhary, Behari Lak Kejriwal, S Pradhan, D N Bakhai, Yashpal Sahani, K P Sengupta, Pradeep Saxena, Michael Startling And Manjiri Vijay Choudhary.

Surya Vinayak Industries

Delhi based commodities and perfume firm, Surya Vinayak Industries, had NPA of about Rs 2,500 crore, according to media reports.The Reserve Bank of India (RBI) conducted an independent forensic audit of the company. It sought an explanation from the banks on why no action was taken despite red flags on loans to Surya Vinayak. The RBI told the 23-member bank consortium to classify the account as a fraud.

Director Jains were operating more than 100 shell companies to divert borrowed money. Their names on the list have Rs 730 crore against them from eight banks.

ZYLOG SYSTEMS LTD

Location – Chennai

Directors – Sudarshan Venkatraman, Shrikanth P, Rajagopal S, Gajhanathan M, Ramani V K, Vasanthakumar A P

Total default- Rs 565.2 crore

Zylog Systems Ltd, incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 15.87 crore) operating in Information Technology sector.

Billionaire Defaulting – DS Constructions Ltd

The high profile construction company run by billionaire Mohinder Singh Narula, DS Constructions, is also a willful defaulter. With a paid-up capital of Rs 265 crore, the company has defaulted on payments to the tune of Rs 230 crore.

The company which employees around 20,000 people, according to its website, has defaulted on its loan taken from the Oriental Bank of Commerce, joining the coveted list of companies.

It’s most famous and well-known project the Gurgaon-Dhaula Kuan highway was in the controversy due to its toll. The residents of Gurgaon had moved the High Court seeking to remove the toll, which eventually was removed.

Willful defaulters, according to the banking terminology, are those who are not paying up despite having the capacity to repay. Though Mohinder’s wife Surina, often written as Queen of Asia, is not listed as a director of the company is a page 3 socialite in London and India. Here are two pictures of hers seen with Queen Elizabeth II and Priyanka and Robert Vadhera.

Videocon

According to the Indian Express, Videocon got Rs 3250 crore loan from ICICI Bank, where as CEO Chanda Kochhar’s husband Deepak gets a sweet deal from Venugopal Dhoot (Videocon). Dhoot formed a joint venture with Deepak took loans Rs 64 crore, then hands Deepak ownership of lending entity for Rs 9 lakh and then ICICI Bank declares Videocon account as non-performing assets. Videocon took loans worth Rs 40,000 crore from various banks. Their names and companies are not listed in the Willful Defaulters list.

Coming Soon part 2 – Complete List of Willful Defaulters

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