The company in question today is Gee Ispat Pvt Ltd and the list with NewsX shows the company owes Oriental Bank of Commerce Rs 10 crore and has been classified as an NPA. The company is registered at the following address: 28 Sector 19 Rohini, New Delhi. The Registrar of Companies data shows that the company was incorporated in 2003 with an authorised capital of Rs 15 crore. The directors are listed as Vijay Pal Garg, Krishna Basia and Ankit Kumar Gupta.
These are the same names in the NewsX NPA files and these are the faces of the men accused of defaulting and defrauding a host of Indian banks of crores and crores of rupees. These men aren’t as high profile as Nirav Modi and Vijay Mallya, but they nonetheless punched holes in India’s bank balance sheet — public and private banks included. The investigation into the entire NPA issue by NewsX revealed that what we found was nearly 40 times the amount that is being talked about and discussed at the moment and that it is not just Oriental Bank of Commerce.
The list is huge but some included are the following: IDBI Bank, Axis Bank, Central Bank of India, Punjab National Bank, Jammu & Kashmir Bank, HDFC Bank, etc.
In an auction, notice put out by Oriental Bank of Commerce for 7 properties in Delhi and Haryana they are hoping to get anything from Rs 6 crores to Rs 15 crores. Similarly, the auction notice put out by Punjab National Bank for the registered offices and other banks together have put out auctions for 5 properties. From factories to machinery, and finished and unfinished goods along with the registered offices the banks are hoping to recover a total of around Rs 25 crore, but that’s less than 10% of the default amount of Rs 320 crore! And the hope that the auction would realise these amounts, is not always necessarily the case.
This also means that even when action is taken and all the assets are seized the banks are hoping to recover only 10% of their outlay, which they may or may not get in the auction. All this was part of the NewsX paper investigation. Our reporters then hit the ground to see what the status actually was. What we found confirmed our paper investigation — the property was sealed with bank notices plastered outside the premises.
But in this filth inside the office, both literal and metaphorical is the real pain of what has gone wrong. Despite being on the auction block for more than 2 years nothing has happened and not a single penny of the money has come back.