Today we bring you case 46 in the NewsX NPA list. This case sheds light the loopholes in the system that allow banks to lend money to companies which are already running large NPA’s. The same directors are running multiple companies and defaulting on loans from multiple banks, all at the same time. This case is a reminder of how banks despite various indications of a company’s financial health, fail to act accordingly and unintentionally end up extracting money out of the system for it to never come back.

Number 46 in the NewsX NPA list is Ronit Nirman PVT Ltd, according to our list, the company owes HDFC bank ltd 24 crore rupees which has now been classified as NPA. The registered address of the company is p/ 411/ 23a Hemanta Mukherjee Sarani, Kolkata. 

According to the data with the registrar of companies with the ministry of corporate affairs, vgs Ronit Nirman pvt ltd was incorporated in April 2005 with an authorized capital of 4 crore rupees. The company filed it’s last balance sheet in march 2011 and held it’s last agm in September 2011. 

according to the roc records, the directors of the company are Dilip Kundu and Bulu Kundu. The same directors appear on our NewsX NPA list as well. This is a case where a Kolkata based company that deals in real estate has allegedly defaulted repeatedly on loans from the same bank …soon after its date of incorporation. Upon further inspection of the roc records..we found that the company started allegedly defaulting on loans just 1 year after its date of incorporation.

The company took 3 loans from state bank of india..the first loan worth 19 crore rupees was taken in 2006 , a second loan to the tune of 35 crore rupees was taken in 2007, and a 3rd one again amounting to 35 crore rupees taken in 2010… taking the total to 89 crore rupees. Then we decided to look up the directors on the roc records…we found out that both the directors had multiple companies running under them…of which 2 other companies namely ronit transport services and ronit hospital ltd were common to them both.

Upon further inspection into roc records, we found that 2 other companies owned by Dilip Kundu were allegedly defaulting on a loan each from different banks. While Ronit builders India pvt ltd took a loan worth 3 crore rupees from united bank of india in 2008. Another company Kundu developers and realtors(p) ltd took a loan worth 16 cr from the oriental bank of commerce in 2007. So despite allegedly defaulting on 3 loans from state bank of India under Ronit Nirmal pvt ltd during the years 2006-2012, the director of the company Dilip Kundu was allegedly defaulting on loans from 2 other banks under 2 different companies and during the same period.

Then we put our paper investigation on hold, and decided to hit the ground…on visiting the registered address, the new owner of the premises told us that ronit kundu had sold them this property almost 10 years back..and they hadn’t heard from him ever since. Incidentally, Ronit builders india pvt ltd kept popping up during our paper investigations..multiple lists named the company as a willful defaulter, year after year. For instance, this Union Bank of India list dating back to 30th September 2017 mentions Ronit builders as a wilful defaulter.  Another such list taken out by the same bank, 3 years back in 2014, also mentions Ronit builders as a wilful defaulter. 

we also found this notice that reveals suit filed accounts of Rs 1 crore and above as on Jan 2017..it mentions Dilip Kundu and Bulu Kundu owing 1.6 crore rupees to Allahabad Bank. We wrote an email to the company, but haven’t received a response yet. So this is what we know Dilip Kundu and Bulu Kundu started Ronit Nirman pvt ltd in 2005. On our NewsX NPA list, the company owes HDFC bank ltd 24 crore rupees. While on the roc records, it has 3 pending loans worth 89 crore rupees from State Bank of India, all of which were taken between 2006 to 2010..Dilip Kundu owned 4 other companies..of which 2 were common to Bulu Kundu. Two of these 4 companies defaulted on a loan each from different banks. When we hit the ground, we found out that the directors of the company had moved out of that location and sold it to the current owners around 10 years back. 

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. The same loophole in the system which allows banks to lend money to companies running under the same director has resurfaced time and again. This reflects on of how much of a mess our system is…even in cases of business loss, it takes years to settle cases..tying up funds, properties and officials…and yet, the directors manage winding up businesses and starting new ones with no accountability whatsoever. Isn’t reforming the system then as crucial as finding the loan sharks?