Number 17 in the NewsX NPA list is Biotor Industry Ltd. According to our list, the company owes Oriental Bank of Commerce Rs 99 crore which has now been classified as an NPA. The registered address of the company is 13, Sitafalwadi Dr. Mascarenhas Road, Mazgaon, Mumbai. Biotor Industry doesn’t appear just once, but four times in the NewsX NPA files, with loans allegedly taken from banks across a number of cities. According to our list, Biotor has taken a second loan worth Rs 38 crores from Vijaya Bank branch in New Delhi, then a 3rd loan from PNB worth Rs 52 crore, again from a New Delhi branch. It appears for that a 4th time for a loan worth Rs 100 crore from Mumbai branch of SBI.
According to the ROC records with the Ministry of Corporate Affairs, the company was incorporated in September 1976 with an authorized capital of Rs 155 crore. The company held it’s last AGM in September 2009 and filed it’s last balance sheet in March 2009. The directors of the company as per the ROC records are Rajesh Mangaldas Kapadia, Bharat Mangaldas Kapadia and Dinesh Ranchordas Kapadia.
This is a story of how a decade old firm allegedly cheated the banks of over a thousand crore by taking loans in the name of farmers … that cash was then swindled and ultimately, it never reached the farmers. Have a look at a further inspection of the ROC records. Here’s a loan of Rs 3.75 crore, another loan of Rs 50 crore, then another loan of Rs 40 crore, yet another loan of Rs 97 crore, a 5th loan of Rs 15 crore, then a loan of Rs 12 crore. It doesn’t end here, the list goes on with a 7th loan of Rs 90 crore, another loan of Rs 12 crore, an eighth loan of Rs 6 crore, and a ninth loan of Rs 3.6 crore. This takes it to a grand total of Rs 329 crore rupees. Here’s a list of the five other companies that fall under Dinesh Ranchordas Kapadia, the first director of Biotor Industries.
As we followed the paper trail, this is what we found. According to a media report from January 2011, the CBI had registered a case of fraud and cheating against the directors of Biotor Industries in 2011. It was further alleged that the company had taken loans to the tune of Rs 1,500 crore from three banks on the basis of forged documents. According to this media report from May 2011, the CID had got a 9-day transit remand of the owners of Biotor in the Rs 1,500 crore fraud case. The same report claimed that Bharat Kapadia and Rajesh Kapadia were arrested by the CBI in January 2011. According to a media report from December 2014, it has been alleged that the central vigilance commission has referred the case of Biotor Industries to the CBI for investigation.
Another media report from 2014 alleged that the Enforcement Directorate had attached properties belonging to the directors of Biotor in a Rs 509 crore fraud case. This media report from February 2017 alleged that more assets worth Rs 300 crore belonging to the directors of Biotor Industries. We’ve written an email to Biotor asking for their comment on the matter, but haven’t received a response. While the paper trail doesn’t end here, we decided to hit the ground and visit the company’s office in Vadodara. Conversations with the guard outside the office and a tea vendor near the office revealed that
the property was seized about 8 years back but hasn’t been sold yet.
So this is what we know. Dinesh Kapadia began Biotor Industries Ltd in 1976, Bharat Kapadia joined as a director in 1977 and Rajesh Kapadia joined in 2002. According to the NewsX NPA list, the company owes a total of Rs 289 crore to four banks. The ROC records show a total of Rs 329 crore worth of loans. Media reports have alleged that the CBI registered a case of fraud and cheating conspiracy to the tun of Rs 1,500 crore in 2011. It’s now 2018 and the whereabouts of the directors are not known.
So how exactly did this decade-old company then manage to dupe the banks? It has been alleged that between 2007 and 2009 Biotor industries signed management and collection agreements with 10 nationalised banks, allegedly claiming that they will directly purchase seeds from farmers. These loans were then allegedly transferred to MCA accounts from where they were allegedly put into about 50-100 village level aggregator accounts. These accounts were allegedly created by Biotor through forged and fake documents, Biotor then withdrew these loans by allegedly creating fake accounts of farmers. Imagine this, a company has allegedly taken loans in the names of farmers, managed to transfers these loans to ghost accounts they’ve created and now the banks are in a lurch as they struggle to recover the money lost.
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