Number 27 in the NewsX NPA list is Dynamic Shells (India) Pvt Ltd. According to our list, the company owes State Bank of India (SBI) Rs 29 crore which has now been classified as an NPA. The registered address of the company is R-122, Greater Kailash-1, New Delhi. Dynamic shells claim to be one of the world’s leading manufacturers in PVC based housing solutions which are used for humanitarian and disaster relief as well as for commercial building purposes.
According to the data with the registrar of companies with the ministry of corporate affairs, Dynamic Shells (India) Pvt Ltd was incorporated in April 2007 with an authorized capital of Rs 4 crore. The company held it’s last AGM in September 2011 and filed its last balance sheet in March 2011. Today we bring to you a case where a decade old company that provides the latest technology in housing relief didn’t quite prove to be a relief for the banking system. The company has reportedly shut down, time and again the directors were arrested, but somehow they found their way back to milk the system.
According to the ROC records, the directors of the company are Nirmala Bhatter and Shambhu Prasad Singh. The same names appear on the NewsX NPA list as well. There are a total of 4 loans, each from PNB bank, taking the grand total to a little more than Rs 38 crore. According to the ROC records, Shambhu Prasad Singh has 3 other companies listed under him, which were incorporated between 2008 to 2011. According to the ROC records, only dynamic shells has allegedly defaulted on a loan.
A media report from 2014 reveals that the CBI had registered an FIR against 3 directors of Sai Baba Builders and Consultants, one of the directors being Shambhu Prasad Singh’s wife Manjari. When we visited the registered address, we found that the office had been sold off by the directors of the company, whose whereabouts were not known to anyone in the area. Moreover, the building was now occupied by other families.
When we dug further, this report shows Shabhu Prasad Singh was also booked by Delhi Police and infact spent a few days in Tihar Jail. This media report also goes on to reveal that according to syndicate bank, 5 bank guarantees worth Rs 38 lakh provided by Dynamic Shells and Sai Baba Builders, both owned by Singh were fake. When the NewsX team hit the ground, the builder of the premises told us that Shambhu Prasad Singh had himself sold this property to him. The builder also claims that he thought the previous owner was a fraud.
But the case doesn’t end here, as we dug further, we found this media report which says that Enforcement Directorate too had attached at least 5 properties of Shambhu Prasad Singh after having issued a provisional order against him under the prevention of money laundering act. The report also goes on to say that loan funds taken by Singh were taken on basis of forged documents of supply orders to the paramilitary forces and armed forces and these were misappropriated and diverted by Singh for his personal use.
This seems like a long chain of alleged corruption in the supply of high altitude tents. According to this media report, the CBI went out to say that wrongful favour was shown by the officials of the special frontier force and Cabinet Secretariat in the procurement of pre-fabricated shelters which were purchased by so Singh’s company. What we found next was extremely shocking, as according to this media report, CBI court sentenced Shambu Prasad Singh to a 3-year jail term. Convicting him for a 2002 disproportionate assets case. Does this then mean that despite having been allegedly sentenced by a CBI court for a 2002 case, Shambhu Prasad Singh kept defaulting on loans till as late as 2011 and despite having such a tarnished public image, how did he manage that?
We’ve written an email to the company, but haven’t received a response yet. We’ve also written to the bank, but are yet to hear from them. So this is what we know, dynamic shells (India) Pvt Ltd was started by Shambhu Prasad Singh and Nirmala Bhatter in 2007. According to our NPA list, this company owes State Bank of India Rs 29 crore and according to the ROC records with the Ministry of Corporate Affairs, the company owes Punjab National Bank a little over Rs 38 crore. According to our reports the director of this company Shambhu Prasad sold off the building where the company was registered.
Case after case, this pattern seems to be coming out more clearly. The directors of any given company are booked for some kind default on bank loans, despite being in trouble repeatedly, these companies are given loans by banks again and again for them to keep failing at paying them back and then these directors shut down their business and flee away.
Once again, through our investigation, we have managed to reach a conclusion about the power of having the right connections at the right place. One can cheat the system, get trapped somehow and still manage a safe escape. How then, does the law stop anybody from committing offenses repeatedly Having an accountable and transparent banking system, is then not the need of the hour? For how long will the common man have to bear the brunt of alleged corrupt bureaucratic ties?