The 15th case of the NewsX’s investigation on Non-Performing Assets (NPA) deals with Sri Murugarajendra Oil Industry Pvt Ltd. Our list shows the company owes State Bank of Mysore Rs 78 crores which has been classified as an NPA. The registered address of the company is No.1, 2nd floor, Place View, VS Raju Road K.P West, Bangalore. According to the Registrar of Companies (RoC) data with the Ministry of Corporate Affairs, the company was incorporated in August 1984. It has an authorised capital of Rs 30 crores. The company held it’s last annual general meeting (AGM) in September, 2014 and filed its last balance sheet in March, 2014.
Today we bring to you a company that has allegedly defaulted on a loan, which is now a burden on the banking system, but the directors believe that there are bigger sharks out there for us to catch. According to the RoC records, the directors of the company are KV Ravikumar and Sunitha Ravi Kumar. The same names have appeared on the NewsX NPA list as well. KV Ravikumar has another company by the name of Jaya Infotech Services Pvt Ltd which began in the year 2000. According to the same media report, more than 400 families were dependent on this factory unit for their livelihood and alleged that the authorities had not paid the salaries for several months due to financial crunch.
So where exactly is the 3 decades old company now? When we visited the official address as mentioned in the RoC, we did find a building but it was vacant, indicating that the company had stopped its operations. But, then we traced down one of the directors of the company. This is the directors’ palatial home and their company went bust in 2013, living in this grand home, the director refused to speak to us or comment on the defaulting status of her company.
The director asked us to go hunt for the bigger sharks out. We wrote emails to the company but haven’t received any response. We also wrote to the bank inquiring about the case but we are yet to receive a response. KV Ravikumar founded Sri Murugarajndra Pvt Ltd in 1984. Sunita Ravikumar became a director of the company in 2002 and by 2013, the company was facing financial troubles and slowly began to shut down operations. While KV Ravikumar has cleared the debts of his other company Jaya Infotech Services Pvt Ltd. In 2016, Murugarajendra Oil Industry still owes State Bank of India’s Rs 78 crores.
But, with the company now shut down, how exactly will the bank now recover this amount? This is a story of the first real victims, the employees who lose from the Satyam employees to Kingfisher employees and then the men and women who had worked at Gitanjali.
It’s the aam aadmi working in the companies who suffer first but are somehow last on the priority list. In some ways, the director of this company is right. The bigger fish have fled the coop and not all NPAs are loot, so what do we do in cases where the loans is due, the directors are free, do we just write it off and move on with no lessons learnt and call it bad luck?