Case number 25 in the NewsX NPA list is Raja Forgings and Gears limited. According to our list, the company owes Punjab National Bank Rs 69 crore which has now been classified as an NPA. The registered address of the company is SCO 860 Shivalik Enclave Main Majra, Chandigarh. According to the ROC records with the Ministry of Corporate Affairs, the company was incorporated in April 1979 with an authorised capital of Rs 20 crore. The company held it’s last AGM in September 2011 and filed it’s last balance sheet in March 2011. The ROC records have listed the company directors as Rajiv Goyal and Alka Goyal, who also appears on the Newsx NPA list, with the additions of Sandeep Goyal and Bharat Bhushan Jain.

This is a company that allegedly defaulted on a loan, but this is the first case where the directors of the company have defaulted on a loan with one company after having allegedly defaulted on thousands of crores of loan with an already existing company. Now have a look at the loans mentioned in the ROC records of the company. There are a total of 10 loans, taking the grand total to a little less than Rs 90 crore. None of these loans have been satisfied yet. We found 2 PNB auction notices from 2015 and 2016, both naming Raja Forgings as a borrower and hoping to recover Rs 69 crore through the sale of properties with a cumulative reserve price of a little over Rs 48 crore.

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When NewsX visited the official address we found that the owners has vacated the premises about 4 years back. When we looked up the directors, a name that kept coming up was Surya Pharmaceuticals Limited. Surya pharmaceuticals limited too appears on the NewsX NPA list. According to our list, this company owes Federal Bank of India Rs 101 crore. We then went back to the ROC records. They show that Rajiv Goyal, Director of Raja Forgings has 11 other companies listed under his name. While most of them started between 2005 and 2013, the only other company that is decades old is Surya Pharmaceutical Limited, a Delhi based Pharma firm run by the same directors.

When we looked further into this particular firm, what we found has left us shocked. The firm’s ROC records had a total of 8 pages worth of loans. As we kept flipping, we found a total of 80 entries for this firm alone. Out of the 80 entries, 34 of them are still pending, 34 … when we calculated the total amount as per the ROC records, the figure left us dizzy. Its Rs 4,598 crore. Let that number sink in. 4 thousand 5 hundred 98 crores rupees. As we followed the paper trail, we found this media report from 2016 which alleges that Suprya Pharmaceuticals owed banks Rs 3,200 crore. It further says that Director Rajiv Goyal had availed loans worth Rs 867 crore from SBI’s Chandigarh branch and loans worth Rs 1,800 crore from 9 other banks. None of these loans were repaid, taking their outstanding dues to Rs 2,600 crore.

The same report further alleges that officials from different departments didn’t know when the company discontinued its operations. So they’ve allegedly defaulted on loans going up to over Rs 3,000 crore, and suddenly it disappears into thin air. We also found this 2017 media report. It alleges that charges of cheating, criminal conspiracy and forgery have been filed against owners of Surya Pharmaceuticals Rajiv Goyal and his wife Alka Goyal for allegedly defrauding SBI of Rs 157 crore. This media report also alleges that the fraud was committed between 2010 and 2012, when the company cheated the bank by fabricating purchases. They were never related to Surya Pharmaceuticals.

As we looked further, we came across another media report from 2014. This report alleges that the CBI had seized Rajiv Goyal’s son Suhail Goyal’s passport in the same 157 SBI defrauding case. This was to ensure that he stays in the country. According to this media report from 2017, SBI and its consortium of 7 other banks had pasted a possession notice outside the directors home for allegedly failing to repay Rs 2,600 crore … the bank officials were allegedly not able to enter the property as the gate was welded by the owners. Now look at this SBI auction notice from 2017. It names Surya Pharmaceuticals and further says that the total outstanding amount is Rs 1,679 crore. Now have a look at the base prices of the 2 plots, Rs 27 crore and Rs 26 crore.

According to a media report from 2016, it alleges that the owners of the company — Rajiv Goyal and Alka Goyal are both absconding. We were able to track down one of the staff members of the firm. This staff member too says that Rajiv Goyal left the country. He is the same Rajiv Goyal is also the chairman of Patiala-based Surya world university. This was confirmed on Rajiv Goyal’s LinkedIn profile, which clearly states that he’s the chairman at Surya Pharmaceuticals as well as Surya World University. We’ve written an email to the bank, but haven’t heard back. So this is what we know, Rajiv Goyal became the director of Raja Forgings in 2013. On our NPA list, this company owes PNB Rs 69 crore. Various auction notices suggest that the bank has been trying to recover this amount, while looking into Raja Forgings, we came across a bigger alleged loss.

The same director Rajiv Goyal had started Surya Pharmaceuticals in 1992. Alka Goyal joined as a director in 1996. On the NewsX NPA list, the company owes Federal Bank of India Rs 101 crore. When we checked the ROC records, we found that between 1992 and 2013, this company has taken a total of 80 loans from multiple banks, of these 34 loans are still pending. Media reports suggest that last year the SBI took possession of the directors home. In 2017, the CBI booked the 2 directors for forgery, cheating and criminal conspiracy, in relation to the same case of defrauding the SBI of Rs 157 crore. It has also been alleged that when we spoke to a guard there, we were informed that both the directors have left the country.

Across our NPA file, a pattern has emerged. A bank gives a loan but the company is not able to pay the bank back and in most cases there isn’t enough collateral to recover the amount. So while this company has defaulted, a second bank goes ahead and gives the same company a loan. This turns into a downward spiral as the situation becomes progressively worse. We’ve told you how not all NPAs are loot but how some of them are results of bad decisions. These bad decisions aren’t restricted to just the businessmen. What about the bad decisions taken by banks? What about the men who sit in these financial institutions and gamble away people’s hard earned money?

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