Case number 21 in the NewsX NPA list is Vishal Exports Overseas Ltd. According to our list, the company owes Punjab National Bank and Vijaya Bank Rs 167 crore which has been classified as an NPA. According to ROC data with Ministry of  Corporate Affairs, the registered address of the company is 301, Sheel Complex, Mayur Colony, Mithakali, Ahmedabad. ROC records show that the company was incorporated in March 1995 with an authorised capital of Rs 157 crore which held its last AGM in September 2017 and filed its last balance sheet in March 2017.

The ROC records further show that the registered directors of the company are Deepak S Mehta and Pradeep S Mehta. The same names which are mentioned in our NPA list. This is a story, in which a company’s directors not only defrauded banks of crores and crores of rupees but they were also allegedly involved in forgery as well as allegedly looting investors through the equity market. On further inspection of ROC records, we found that the company has also taken various other loans running into crores from many other banks. Vishal Exports owes ICICI Bank Rs 40 crore rupees, Canara Bank Rs 11 crore, State Bank of Jaipur and Bikaner Rs 25 crore, United Bank of India Rs 44 crore and the list goes on.

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This was just the beginning when we dug deeper into the paper trail, the dots started connecting. Have a look at his media report which says that Vishal Exports overseas limited lost a case against Enforcement Directorate for its involvement in multiple cases of fraud. Not only this, the Enforcement Directorate attached Director Pradip S Mehta’s bungalow worth Rs 2.5 crore and also sealed two windmills owned by the company with a value of Rs 3 crore.

Another media report shows that in 2015, the Enforcement Directorate filed a chargesheet against directors of Vishal Exports and 18 others for a fraud of Rs 200 crore under the prevention of money laundering act. According to ED the company had taken loans from 5 different banks including PNB, Vijaya Bank, Andhra Bank , UCO Bank and State Bank of Hyderabad and used the money for personal benefits. Further digging into to the matter, it was revealed that in 2010, CBI arrested chairman of Vishal Exports Subhash Mehta and his two sons Pradeep Mehta and Deepak Mehta for allegedly defrauding Andhra Bank of Rs 22 crore using forged documents.

The scam was running deeper than our imagination. The company was not only defrauding banks but it was also duping its investors in the share and equity market. A notice from National Stock Exchange asked Vishal Exports why the company shouldn’t be delisted from the exchange. The company was then eventually delisted for non-compliance and violation of guidelines. When NewsX visited the company’s registered address in Ahmedabad, we found that the company has been lying sealed for many years. We spoke to the neighbour who confirmed that the company did exist there but nobody had a clue regarding whereabouts of the directors. We also wrote to the directors of the company on their registered email address but are yet to receive a response.

This is what we know so far, Chairman Subhash C Mehta established Vishal Exports and overseas limited in 1995. His tw0 sons Pradip and Deepak were then made the directors of the company. They took two loans, Rs 99 crore loan from PNB and Rs 68 crore loan from Vijaya Bank. They then defaulted and stopped making payments. Enforcement Directorate then attached their 17 properties and filed a chargesheet in 2015 which includes charges of forgery and fraud. Since then properties of the company have been lying sealed. The NSE also banned them from trading for illegal practices. In case after case, we have found one fundamental flaw in the system. Multiple banks give loans to the same defaulter until total amount becomes untenably large.

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