Case file: 38

Name: International Electron Devices Limited

NPA amount: 10 crore

Bank: State Bank of India

Branch: Stresed Assets Mgt Br delhi

Case number 38 in the NewsX NPA list is International Electron Devices Limited. On our NPA list, the company owes State Bank of India Rs 10 crore which has now been classified as an NPA. The registered address of the company is a 208 Okhla Industrial Phase 1, New Delhi.

According to the RoC records with the Ministry of Corporate Affairs, this company was incorporated in February 1978 with an authorized capital of Rs 40 crore. The company held its last AGM in September 2011 and filed its last balance sheet in March 2011.

This is a story of a 4-decade old company that deals in electronic parts. It is yet another case where letter of credits were allegedly misused for generating more loans, where money flowed out of the system, but never came back.

We hit the ground and decided to check the registered address of the company. A guard who was appointed by the bank officials informed us that CBI officials visit the premises every now and then. He also said that the banks have been trying to auction the company’s property but have been failing to do so.

According to the RoC records, the directors of the company are Sudhir Kumar Kaura, Rashmi Kaura and Kuldip Singh Luthra. The same names appear on our NPA list as well.

Upon further inspection in the RoC records, we found out that the company had taken 39 loans in total, of which 13 loans were satisfied and the rest 26 loans were still pending.

Have a look at this loan worth Rs 36 crore, then this loan worth Rs 4 crore, another one worth Rs 59 crore, this loan worth Rs 14 lakh, and another loan worth Rs 11 crore and on and on. The total of these 26 loans sums up to a little over Rs 390 crore.

When we got back to our investigation, a legal trail appeared. We came across a 2013 judgment copy from a case between Yes Bank Ltd and International Electron Devices Ltd.

This judgment copy reveals that Yes Bank issued a statutory notice in November 2012 which demanded Rs 11 crore from International Electron Devices Ltd and confirms that the company neglected to pay the debt to Yes Bank.

Have a look at this judgment copy from December 2015, it reveals that Delhi Press Samachar Pvt Ltd had filed a complaint against the directors of the company seeking a trial for allegedly defaulting on a business payment for printing of stickers for the company.

As we dug further, we also found a bail application filed by the assistant accountant of International Electron Devices Ltd in August 2017.

This copy reveals that CBI had registered an FIR against the officials of Union Bank of India, GT Road Ghaziabad branch along with a few other companies including International Electron Devices Ltd. The bank officials allegedly entered into a conspiracy with the directors of these firms by permitting discount payment of Rs 265 crore against bogus LCS.

It further goes on to reveal that after conducting investigations, CBI submitted a chargesheet against 15 accused persons. The list mentions Sudhir Kumar Kaura, he is also mentioned in our NPA list as one of the directors of International Electron Devices Ltd.

Following this, it reveals that the bail application preferred by the assistant accountant of the company was rejected.

So, this is what we know: International Electrons Devices Ltd was started by Sudhir Kumar Kaura in 1979. On our NPA list the company owes State Bank of India Rs 10 crore and on the RoC records it has 26 pending loans worth Rs 390 crore. In 2013, the company allegedly defaulted on a loan worth Rs 11 crore by Yes Bank Ltd. From 2010 to 2012, some officials of Union Bank of India granted loans on basis of fake Letter of Credits. Later, the CBI filed an FIR against the bank officials along with the directors of the company for allegedly committing conspiracy, cheating and criminal misconduct. In 2017, the bail application of one of the accountants of the company who was arrested for the same was rejected.

There you have it. It wasn’t just Nirav Modi and company who were allegedly greasing hands within banks to misuse Letters of Credit or Letters of Understanding to take out huge loans. If cases like this are on record worth hundreds for crores, it seems bizarre that changes only happen only when high profile cases happen. It’s because alleged frauds like this get sucked into systemic black holes. Hundreds of crores of frauds turn into thousands of crores and guess what, the properties remain unauction for years. The men and women behind the fraudulent NPA just disappear. If they’re held to account, maybe the people’s trust would be restored. When the aam admi is harassed for missing even one EMI, how do these people still get away with it?