Case number 16 in the Non-Performing Asset (NPA) files is Jai Shree Krishna steel works Pvt Ltd. According to our list, the company owes State Bank of India Rs 53 crore which has now been classified as an NPA. The registered address is no-50-60-7, 9th cross, 2nd block, Jayanagar, Bangalore. According to the registrar of companies with the ministry of corporate affairs, the company was incorporated in July 2009 and has an authorized capital of Rs 20 crore. The company held it’s last AGM in September 2017 and filed its last balance sheet in March 2017.
This is a story of how company has allegedly defaulted on a loan. As the bank now struggles to recover the money, the whereabouts of the owners are not known. The ROC records have further listed Mahesh Askarandas and Kunal Mahesh as the directors. These are the same names that appear on the Newsx NPA list, along with the addition of PN Prasad. Both Mahesh Askarandas and Kunal Mahesh have another company listed under them by the name of lotus steel billets India Pvt Ltd.
When we dug further into the ROC records, this is what we found. Besides the loan mentioned on our NPA list, Jai Shree Krishna Steel Works has another loan of Rs 3.5 crore. Then another loan of Rs 3 crore, a 3rd loan of Rs 5.98 crore rupees, a 4th loan of Rs 25.9 crore and yet another loan of Rs 25.9 crore. This takes the total on the ROC records to a whopping Rs 64 crore.
If we add up the alleged loan amounts, it crosses over a Rs 100 crores. So what exactly happened to the company that now owes crores to several banks. When we visited the official address of Jai Shree Krishna Steel Works, we found that the premises had been vacated approximately one year ago. The earlier owner of the building further revealed that the owners of the company hadn’t even paid the rent for over 6 months.
As we dug further into the paper trail, we found this auction notice by the south Indian bank from August 2014 which clearly mentions that the borrowers Mahesh Askarandas, Kunal Mahesh and PN prasad have failed to pay the amount they owe to the bank. According to this notice, the amount stood at Rs 53 crore. The same auction notice mentions two properties, both belonging to PN Prasad. While the directors owe the bank Rs 53 crores, look at the reserve price of the first property. It’s a measly sum of Rs 1 crore. The second property mentioned in the auction notice, belonging to PN Prasad has a reserve price of Rs 1 crore 40 lakh.
Interestingly, the same auction document dated August 2014 reveals that Mahesh Askarandas and Kunal Mahesh live or perhaps earlier lived in the posh Al Habtoor building in Dubai and were operating their second company, Lotus Steel Billets out of this Mumbai address. We wrote an email to the company seeking a response on the matter, but haven’t received one yet. We also wrote to the bank for their comment on the loan status but haven’t heard back yet.
This is what we know, Mahesh Askarandas started Jai Shree Krishna Steel Works Pvt Ltd in July 2009. Kunal Mahesh joined the company in August 2010. According to our NPA list, the company owes State Bank of India Rs 53 crore. While according to the ROC records, Jai Shree Krishna owes a number of other banks a cumulative sum of Rs 64 crore. If we go by the South Indian Bank auction notice, then financial troubles began for the company around 2014. When 2 properties were seized by the bank and put up for auction. However, according to the ROC records, the company filed its last balance sheet in 2017 indicating that it was operating on paper but not on the ground. The company premises were vacated about a year ago and the directors are nowhere to be found now.
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