In India’s biggest campaign to trace and track Non-Performing Assets (NPA), NewsX stepped in day 44 of its 100-day investigation. Today, we opened the case number 29 about a Delhi based firm Indian Techno metal Co. Ltd. According to our list, this company allegedly owes a total of 133 crore rupees to Punjab and Sind Bank along with State Bank of Hyderabad. This doesn’t end here. According to the RoC records the company is yet to repay 10 loans to multiple banks.
During the course of our investigation, we were able to track down another company run by the original director of Indian Technometal. The company is mentioned twice on our list, it owes Punjab and Sind bank 68 crore rupees along with State Bank of Hyderabad to which it owes another Rs 65 crore. The registered address of the company is 1107, Vikrant tower 4, Rajinder place, New Delhi.
According to roc records with the Ministry of Corporate Affairs, the company was incorporated in July 2009 with an authorised capital of 25 crore rupees. The company held its last AGM in September 2012 and filed its last balance sheet in March 2012. Roc records have listed the company Directors as Rakesh Kumar Sharma, Vinay Sharma and Ashwini Kumar Sahoo, who also appear on NewsX NPA list with the addition of Geetanjali Taneja.
This is a company that allegedly defaulted on a loan, not once but on multiple occasions, through different firms and defrauded many banks. Today, we bring to you another case where the directors of a company started the firm and allegedly defaulted on a loan, after having been under the scanner for allegedly defaulting on massive loans pertaining to other companies floated by them in the past.
As per records, there are a total of 10 loans, taking the grand total to a little more than 10 crore rupees. None of these loans have been repaid as yet. We then decided to check the records of the company’s directors, and what we found was mind-boggling. Indian Technometal’s original director Rakesh Kumar has more than 20 other companies listed under him. We went back to our NPA list to draw a comparison and as expected the name was mentioned in the capacity of the director of as many as 8 other companies.
Team NewsX also hit the ground and found out that another company had taken over the property where this company was first registered and the new occupants told us that the bank officials keep asking about the whereabouts of the previous owner. As per investigation, loans mentioned in our NPA list from all the 8 companies linked to Rakesh Kumar Sharma, it sums up to a total of 636 crore rupees. A name that rings a bell was Indian Techomac Co Ltd. According to RoC records the company was incorporated in September 1987 with an authorised capital of Rs 50 crore.
According to our NPA list, Indian Technomac Co Ltd owes State Bank of Hyderabad 168 crore rupees. Further, in the investigation we found has left us stunned, the firm’s records had a total of 6 pages worth of loans as we kept flipping, we found a total of 52 entries for this firm alone.
Out of the 52 entries, 26 are still pending, when we calculated the amount as per the roc records, the figure was a whopping 4,100 crore rupees.
As per the 2015 Bank of India auction notice, a consortium of 14 banks were trying to recover Rs 1,463 crore rupees from Indian Technomac by selling a property with reserve price of Rs 2.5 crores rupees as we dug further into the paper trail, we found these media reports which state that a cheating and fraud case was filed against Indian Technomac for allegedly cheating Rs 2,175 crores of sales tax. The report further alleges that the company did so by submitting forged documents to the bank, and didn’t pay their taxes between 2009 and 2014.
This media report alleges that the state tax department has booked the company’s directors under section 420, 467, 468, 471 and 38 of the IPC. As we kept looking, we found this media report filed precisely 10 days later, alleging that Indian Technomac director Vinay Kumar was arrested by CID in a nearly 6,000 crore fraud. The same report further alleges that Vinay Kumar was arrested in connection with 2 FIRs lodged by CID- it’s been alleged that the cases are related to tax evasion and also for duping Himachal Pradesh Electricity Board.
This report also goes on to allege that the CID is still looking for one of the directors Rakesh Kumar Sharma- who might have fled the country, remember that this is a March 2018 report. As we dug further, we found another media report from 8th March this report also alleges that the tax evasion was detected in 2014, but recovery procedures have failed and the company’s assets have been valued at Rs 275 crores. So an alleged loss of over 2,000 crore rupees and the current assets available for recovery are allegedly valued at a measly 1/10th of the loss amount.
The media report says that the company closed its operations in 2014. This means that though the company had likely shut down its operations in 2014, one of the directors was finally arrested 4 years later, (2018). Meanwhile, the search for the main accused Rakesh Kumar Sharma is still underway So this is what we know, Rakesh Kumar Sharma started Indian Technometal Pvt Ltd in 2009. On our NPA list, it owes Punjab and Sind Bank 68 crore rupees and 65 crore rupees to State Bank of Hyderabad. On the roc records, this company owes a consortium of banks a little more than Rs 10 crore. A 2015 auction notice suggests that a consortium of banks have tried to recover Rs 1,463 crore by selling a property with the reserve price of 2.5 crore rupees.
We then came across even a bigger loss, the same director Rakesh Kumar Sharma had started Indian Techomac co ltd in 2008. On the NPA list the company owes State bank of Hyderabad Rs 168 crore. When we checked out roc records, we found that this company has taken a total of 52 loans of which 26 loans are still pending. Media reports suggest that this company didn’t pay their taxes between 2009 and 2015. Following which the company closed down its operations in 2014 and finally one of the directors have been allegedly arrested this year in a nearly 6000 Crore fraud.
A similar pattern has emerged through our NewsX NPA investigation. Multiple banks extending loans to the same defaulter year after year, until the amount spirals into thousand of corers, and then they keep struggling in order to get the money back, this story only reiterates the fact that the recovery process can be very painful and how a handful of people can make their way past law and order and manage to dupe the system with ease. when does this end? Are we to then stop having faith in this system that seems so promising at the face of it?