Case number 30 in the Newsx NPA list is Adigear International Private Limited. As per our NPA list, it owes State Bank of India Rs 39 crore. The directors of the company in our list are Sanjay Khanna, Sandeep Khanna, Pran Nath Khanna and Anju Khanna. This is a story of how one of India’s leading sports apparel manufactures went bust leaving a trail of unpaid loans in it’s wake. At the website of Adigear international, the boast of manufacturing everything from apparel, sports goods, accessories, backpacks and even military clothing including bullet-proof vests. The clients the company claimed it’s the who’s who of the global brand market. Adigear was sourcing and manufacturing for these brands in India.
The man who ran it Sanjay Khanna was even featured as a young turk boasting of a Rs 200 crore turnover and transforming a 100-year old clothing company. There is no Adigear International registered with the ministry of corporate affairs. But there is an Adigear apparel and accessories private limited. With the same directors, Pran Nath Khanna and Anju Khanna. Pran Nath Khanna and Anju Khanna are also directors in 2 other companies. Metaphor exports private limited and peach exports private limited. This company was incorporated in december of 2011 with an authorised capital of Rs 50 lakh but the company is marked as strike off which means it’s been removed from registration as a company in India.
When we investigated, we found this notice from the registrar of companies dated june 2017, naming the companies being struck off the list. It started going wrong for the Adigear Group of Companies and the Khannas much before that here’s a notice from the Indian Overseas Bank from 2015 saying it was proceeding against Adigear for defaulting on a loan of Rs 41 crores. 2 years before that in 2013, the Oriental Bank of Commerce put out an auction notice for 2 properties in Alwar in Rajasthan. On an outstanding loan of Rs 17 crore, but the base amounts of the two properties of around Rs 1.6 crore each, that’s less than 20% of the outstanding value. Here’s a case in the Delhi High Court as recently as December 2017. When Adigear International tried to move against an entity it owed Rs 6.5 crore, Adigear lost that case. As per a newspaper report from May 2017, it reveals how Sanjay Khanna and Sameer Khanna were arrested by the CBI. The CBI claimed they had taken a Rs 23 crore loan from the Oriental Bank of Commerce using forged property papers even claiming that they had used sisted companies using benami accounts obtained by using KYC’s of their employees to funnel funds away from the company.
NewsX went to find out what actually happened to the Adigear. The registered address of its sister concern with the Ministry of Corporate Affairs was a 40 Mayapuri extension industrial area New Delhi. When we reached there, we found no Adigear there. A local told us that the company had shifted long ago. Then the security guard told us that the police officials also came to that address regularly. Another company that quietly disappeared leaving a trail of NPAs is in its list.
Adigear International was run by the Khannas. Sanjay, Pran Nath, Sandeep, Anju. It was manufacturing apparel for some of the world’s leading brands. By 2013, the company had turned into a defaulter. Oriental Bank of Commerce being the first bank to start auctioning off it’s assets. By 2015, the group of companies were struck of India’s corporate affairs registry leaving a trail of NPAs in their wake. The main man behind the firm was arrested by the CBI accused of forgery and using benami accounts to funnel funds.
Here’s a case of a noted and established player in India’s outsourced manufacturing juggernaut that went bust as it went under, the directors got more and more desperate round tripping funds through companies to ward of debts even allegedly going as far as faking property papers to prevent the inevitable from coming.