We’ve exposed and investigated case after case. A massive list of more than 1400 companies in the NewsX NPA list. The pandora’s box is now open as the light has been shown into one of the biggest issues we face collectively leads are pouring in even beyond your list. Here’s the 1st case we’ve come across during the course of our investigation that was not in our first list. A company that has allegedly duped a consortium of banks, running up loans worth thousands of crores while the banks have now taken possession of the companies properties, scrambling to bring the money back into the system, however, it’s directors remain free men.
This is the story of BS limited. According to the company’s official website, BS limited claims it’s a leading infrastructure player in power transmission and distribution. As per the ROC records with the Ministry of Corporate Affairs, BS Limited was incorporated in January 2004 with an authorised capital of Rs 50 crore. The company held it’s last AGM in September 2015 and filed its last balance sheet in March 2015. The registered address of the company is 504, Trendset Towers, Banjara Hills Hyderabad.
The ROC records have further listed Rajesh Aggarwal, Pochendar Shenigarapu, Narayan Rao Gali, Arun Dogra and Dimple Kaul as the directors of the company. Have a look at the ROC records of the company, the records show this loan worth Rs 28 crores, another loan worth Rs 150 crores, 2 loans worth Rs 25 crores each, then a loan worth Rs 1 crore and another loan worth Rs 50 crores. This loan amounts will leave you shocked. Here’s a loan worth Rs 1,500 crore but it doesn’t end there. Look at this loan of Rs 1,700 crore rupees. This takes the total on the ROC records to Rs 3,479 crore.
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Through our investigation, we found this possession notice issued by the State Bank of India. As part of NewsX investigation, a notice names the borrower as BS Limited while Rajesh Agarwal has been listed as the guarantor for the company. According to this possession notice, BS Limited owes a consortium of banks a total of Rs 1,419 crore. These banks include 5 SBI branches and 7 other banks. It further says that they failed to repay the respective loan amounts, all which were due until September last year.
As we dug further into the paper trail, we found that the banks have taken possession of 9 of the company’s properties as it failed to repay its loans. An alleged loss of Rs 1,400 crores. So where exactly is the company now? When we hit the ground and visited the official registered address of the company, we found it to be active. A receptionist confirmed that we were at the right office. The receptionist further told us that the Managing Director of the company- Rajesh Agarwal visits the office once in a while remember that this is the same name that appears in the ROC records and also on the SBI possession notice.
So the office is running, but there’s no one in-charge. The receptionist gave us the number of Sreedhar Bharatham. We’ve been told that he’s the president of BS Limited. When we called him up, our questions were dodged. To cover our bases, we also went to the primary address mentioned in the SBI possession notice but found it to be non-functional. The defunct stock, however, is still listed on the exchanges valued at just a rupee.
So this is what we know. Rajesh Agarwal started BS Limited in 2004, between 2014 and 2017, the company added 4 other directors. The ROC records of the company show pending loans from a number of banks and these aren’t small amounts either. These loans have been taken between 2009 and 2015. According to the SBI possession notice from 2017 suggests that the company began defaulting on loans in the last one year. According to the same notice, this company owes a consortium of banks Rs 1,400 crore. So while the banks have only just begun the process of getting the money back, our ground investigations revealed that the company is still operational.
This is the biggest default that we’ve investigated as part of the NewsX campaign. It tells a story of how many such firms have been twisting the system for long and raises the same question. What happens when a company loses vast amounts of money. How little is actually reclaimed through asset sales and how much good money should be pumped after bad by banks in the hope that the firm turns around and repays its loans.