Number 24 in the NewsX Non-Performing Asset (NPA) list is Puneet Fashion Pvt Ltd. According to our list, the company owes Allahabad Bank Rs 86 crore which has now been classified as an NPA. The registered address of the company is 854/2 Punjab Mata Nagar Ludhiana. According to the data with the registrar of companies with the Ministry of Corporate Affairs, Puneet Fashion Pvt Ltd was incorporated in August 2000 with an authorized capital of Rs 3 crore. The company held it’s last AGM in December 2010 and filed its last balance sheet in March 2010. According to the ROC records, the directors of the company are Tilak Raj Bedi and Nikhil Bedi. The same names appear on the NewsX NPA list as well. This is a story that shows why we need to fix the system, and fix it fast. Today we bring to you a case where a company allegedly took one massive loan. This loan then turned bad, and now it’s been a decade but they’re not even close to recovering the amount.
Upon further enquiry into the ROC records, we found that Puneet Fashions Pvt Ltd has taken up 2 loans, one of Rs 90 lakh from the small industrial development Bank of India in 2009 and another massive loan of Rs 120 crore from Allahabad Bank in 2007, both of which have not been satisfied this takes the total on the ROC records to a little less than Rs 121 crore. According to the ROC records, Tilak Raj Bedi has 3 other companies listed under him. All incorporated between 2009 and 2011. We decided to check the ROC records for the rest of the companies as well. While 2 of them had clear accounts, the company incorporated in 2010 — TRK Knitfab Pvt has a pending loan worth Rs 14 crore to State Bank of India.
We then hit the ground, when we visited the registered address, we found that the company was registered at a residential address, so either the registered address is wrong, or the company has been operating out of a residential plot. The neighbours told us that the family still lives there. When we dug further into the paper trail, we found an e-auction notice issued by Allahabad Bank in January 2014. The name of the borrower is Puneet Fashion Pvt Ltd with the name of guarantor Tiklak Raj Bedi, who is also mentioned on our NPA list. According to this auction notice, Allahabad Bank was trying to recover Rs 120 crore. Take a look at the extensive list of properties mentioned in the same notice. The first property has a reserve price of Rs 3 crore 84 lakh, then there’s the second property with a base price of Rs 72 lakh. A 3rd property for Rs 89 lakh.
The entire notice has 8 other properties listed for auction. So while the bank is hoping to recover Rs 120 crore, the cumulative reserve price of all 11 properties stood at a little over Rs 11 crore. Then there’s this auction notice from 2016, same bank, same borrower, same guarantor and the same loan amount. It mentions 3 properties whose cumulative reserve price stood at a little less than Rs 2 crore. And then we found yet another auction notice, this time from last year. This too is an Allahabad Bank auction notice for two of Puneet Fashions properties. Their total reserve price was a little less than Rs 1 crore.
Take a look at this court order from 2016. It says a one-time-settlement, also known as OTS in banking terms, between Punnet Fashions and Allahabad Bank failed as the company representatives didn’t turn up for the settlement. We’ve written an email to the company, but haven’t heard from them. We also wrote to the bank, but are yet to get a response. This is what we know so far — Tilka Raj Bedi and Nikhil Bedi started Puneet Fashion Pvt limited in 200, according to our NPA list, they took a loan of Rs 86 crore, while the ROC records show loans worth Rs 120 crore. The bank on both lists is Allahabad Bank. Our paper investigation revealed that Allahabad Bank got possession of at least 11 properties in 2013 between 2014 and 2017, the bank released auction notices, trying to get the money banc. While the ROC records show that the company is under liquidation. Our ground report reveals that the company was operating out of a residential address, where the directors currently live.
Since we started this campaign, we’ve brought forward the argument that not every NPA is a loot and not everyone with a pending loan is a scamster but this case sheds light on the other aspect of bad loans, on how painful the recovery process can be. If we go by the ROC data, Allahabad Bank gave a loan in 2007. It’s been 10 years and they’re still struggling to get the money back while it’s alright to pump out money for businesses, we need to take a step back and ask why are massive amounts loaned without sufficient collateral? And why is the recovery process so slow?