New Delhi. Some companies take loans from banks and they start doing ‘gimmicks’ at the time of withdrawal. After this begins the ‘tamasha’ of recovery. These two words (nautanki and tamasha) have been used here because a case has come to the fore, in which the name of two companies involved is ‘tamasha’ attached to one and ‘nautanki’ in the name of the other. .
The ‘Great Indian Nautanki Company’ took loans from three different banks. The name of the company that became the guarantor of the banks in getting the loan is ‘Great Indian Tamasha Company’. Although the loan amount is not very big, but if the names of both the companies are slightly different, then this case has come in the eyes of the people associated with the business world.
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The matter came out from the public notice
The matter came to light when IDBI Bank issued a public notice regarding the e-auction of the properties of Great Indian Tamasha Company. When a company (Great Indian Nautanki Company) defaults, or does not repay the loan, the guarantor company has to repay that loan. The guarantor in this case is the Great Indian Tamasha Company. And the property of the guarantor can be attached until the full amount of the loan is returned. Attached property can also be auctioned.
How much is the amount?
The Great Indian Nautanki Company took a loan of Rs 86.48 crore from IDBI Bank. A loan of Rs 6.26 crore was taken from HDFC Bank and Rs 49.23 crore from Bank of Baroda. This amount is without interest and penalty. According to the notice of IDBI Bank, as of May 1, the due amount of IDBI Bank was Rs 92.69 crore and the interest after May 2 is separate. Anumod Sharma, Anu Appaiah, Viraf Sarkari and Sanjay Choudhary, SG Investments, Great Indian Tamasha Company, and Wizcraft International Entertainment are mentioned as directors or guarantors.
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IDBI Bank has invited bids or offers under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act for sale of the assets of Great Indian Tamasha Company. The SARFAESI Act allows financial organizations and banks to auction residential and commercial properties of a defaulting borrower.
Auction of 107.24 acres of land
IDBI Bank, HDFC Bank and Bank of Baroda have invited bids or offers through e-auction for sale of 107.24 acres of land owned and mortgaged by Great Indian Tamasha Company. The reserve price of the properties is Rs 11.53 crore and this e-auction will be open from July 16 to July 22. As per the public notice, the e-auction will take place on July 27. The properties to be auctioned are located in Ballamvati Mandal Panchayat of Perur village in Kodagu district of Karnataka.
Generally, banks ask for security/guarantees only after an account is classified as NPA. Moneycontrol could not immediately get any information about when the banks declared the account as NPA.
Let us inform that IDBI Bank had filed an insolvency application in the Mumbai Bench of the National Company Law Tribunal in 2021 against Wizcraft International Entertainment, the guarantor of the Great Indian Nautanki Company. This was done because he was not able to recover the dues after invoking his corporate guarantee.
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What do these companies do?
The New Delhi based Great Indian Nautanki Company was established in 2007. It operates entertainment venues and shows, most notably in Gurgaon’s Kingdom of Dreams. At the same time, the Great Indian Tamasha Company was established in January 2008 and is based in New Delhi. It is a non-government company with an authorized share capital of Rs 2 crore. It is involved in sports and recreational activities. Anumod Sharma and Sanjay Chaudhary are the directors of both these companies.
Isn’t this an alarm bell?
Names like Nautanki and Tamasha are not common names for companies in the Indian corporate world. Some officials of banking and corporate had questioned that when the banks did their due diligence before giving loans, why did they not doubt the names of the companies?
However, a legal expert was of the opinion that names should not be taken as an indicator of the credibility of the company. A Mumbai-based lawyer on condition of anonymity told Moneycontrol, “The names sound suspicious, but we cannot conclude that there was any settlement with Due Diligence. ” Overall, the money given has not come back and the banks will have to struggle to recover it.
Tags: Bank NPA, hdfc bank, IDBI Bank
FIRST PUBLISHED : June 21, 2022, 19:08 IST