Case number 49 in the NewsX NPA list is Linkson Coal and Minerals Private Limited. According to our list, the company owes State Bank of Bikaner and Jaipur 56 crore rupees, which has now been classified as an NPA. The registered address of the company is B-103 Pushp Heritage, Mahavir Nagar, Kandivali, West Mumbai. As the per the ROC records with the Ministry of Corporate Affairs, the company was incorporated in October 1997 with an authorized capital of Rs 5 crore. The company held it’s last AGM in September 2013 and filed its last balance sheet in March 2013.

Upon further inspection of the ROC records, we found that this company has a total of 6 other loans, of which 4 are still pending. Have a look at this loan worth Rs 8.9 crore rupees, then this loan worth Rs 102 crore, another massive loan of Rs 55 crore and a fourth loan worth Rs 30 crore. This takes the total on the ROC to Rs 195 crore.

Think about 1 property, 2 people and several banks extending them loans. On the basis of allegedly forged documents but this time the stakeholders involved realised, they’re stuck in a downward spiral of deceit and lies, that they end up battling one another, as the main culprit roams free. If you think this only happens in movies, then think again.

The directors of the firm as per the ROC are Yashwant Lalchanda Sangla and Manju Yashwant Sangla. The same names appear on the NewsX NPA list as well with the addition of Kumar Gaurav Sangla. As we searched for the directors on our NPA list, we came across a second company under the same Linkson Group. On our NPA list, Linkson Ispat and Energies Pvt limited owes unit trust of India Rs 30 crore.

When we looked at the ROC records for this company, we found that the company was incorporated in November 2011 with an authorised capital of Rs 3 crore. Incidentally, this company too filed it’s last balance sheet in March 2013 and held it’s last AGM in September 2013.

When we checked the ROC records for pending loans for this second company, we found a total of seven loans, of which 2 are still pending. They include this loan worth Rs 77 crore and this second loan worth Rs 31 crore, taking the total on the ROC for this company to Rs 108 crore.

We then decided to check whether the directors have any other companies besides the 2 mentioned on our list and found this extensive list of 12 other companies, with several under the same Linkson banner. After finishing our preliminary research, we decided to visit the official address.

When we reached, we found that it was a residential address and the office exists. We spoke to an official who told us that the company is no longer active. This is one of the cases where NewsX was able to track down the director. When we spoke to the director on the phone, he acknowledged that the company is facing financial trouble.

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The director also said that they hope to repay the bank within 6 months, but given the market condition even selling properties has become tough, adding to their problem as the interest on the loans continues to grow. The director of the company insists that he’s a good businessman who wants to settle the loans, so what was going on?

As we dug further, we found this Madhya Pradesh pollution control board notice from 2013. It’s a notice that containing names of nearly 50 defunct mines and number 24 on the list is Linkson Coal and Minerals Pvt Ltd. Suggesting that trouble began for the company around this time.

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We also found this media report from September 2015. It alleges that directors of the Linkson Group had been booked for alleged financial fraud. It further alleges that Linkson Group duped a financial firm by selling of parts of projects which were infact submitted to the said financial firm as collateral for loans.

Then there’s another media report from September 2015 on the same. This report alleges that directors of Linkson Group took loans from 2 different banks by submitting the same property as collateral they then allegedly sold off the property without nocs from the banks. They were booked under sections 406, 420, 468, 471 and 38 of the IPC for fraud and forgery.

We also found this media report from February 2016. It alleges that PNB put out an official list of willful defaulters and on that list were two of the Linkson Group of companies-Linkson International and Linkson Ispat Energies.

Have a look at this media report from October 2017. It alleges that a Bank of Baroda head and others including Manju Sangla and Gaurav Sangla, directors of Linkson, were booked for criminal conspiracy, cheating and forgery.

The report further alleges that the directors had submitted a fake enclosure valued at Rs 6.45 crore in 2013 but when the same was revalued in 2015, the actual amount was Rs 1.85 crore, a difference of nearly Rs 5 crore.

Iin December 2017, trouble continued for the firm’s directors as per this report. The Stocks and Exchange Board of India imposed a fine of Rs 6 lakh on directors Anand Chaturvedi, Manju Sangla and Yashwant Sangla for failing to disclose encumbered shares under the prohibition of insider trading act.

We found the official Sebi document confirming the charge. We’ve written to the bank, asking for their response, but haven’t received one yet. So this is what we know, Yashwant and Manjula Sangla started Linkson Coals and Minerals in 1997. On the NewsX NPA list, the company owes State Bank of Bikaner and Jaipur Rs 56 crore. While on the ROC records, it owes multiple banks a cumulative sum of Rs 102 crore.

When we visited the official address, we found the office but were told that the company is no longer active. We spoke to the director himself and he told us that he’s in the process of repaying the loans. According to several media reports, the directors have allegedly used fake documents and photocopies of the same properties to procure loans from multiple banks and financial institutions.

At the centre of every loan extension, is the collateral, a gaurantee that if things go wrong, there’s something to fall back on to relieve ourselves from the financial stress.

If the allegations are true, this case reveals 5 key holes that cause lapses. Firstly, the same property papers used in multiple banks to secure multiple loans. Secondly, the claimed value of the collateral properties turns out to be several times the amount of the real market value. Thirdly, the properties that are left with banks were sold off without nocs from banks. Fourthly, the same people running 14 firms helped them easily bluff the system and rack up more loans and finally how easy it is for firms to work in knivance with bank officials to round-trip cash and fake papers when you and us as personal loan seekers have to go through extended scrutiny.