Kolkata-primarily based SREI Equipment Finance Limited has come under the scanner of various companies after a whistleblower’s letter alleged that the financing company had restructured loans to prevent them from becoming non-appearing assets (NPAs).
The letter, dated December 19, 2018, became sent to Additional Commissioner, CGST, with copies to Reserve Bank of India and Serious Fraud Investigation Office.
“Company frequently restructured bad loans to break out NPA/launder cash via the hawala direction. RBI recommendations are systematically bypassed…” stated the letter.
The GST department, sources told Moneycontrol had one at a time known as SREI’s Chief Executive Officer DK Vyas for thinking, following raids in the business enterprise’s Mumbai office for alleged GST violation.
A senior officer in GST branch added that the organization is examining loans that SREI had given to infrastructure and real property organizations. “The loans had been given on the idea of sale deeds among inter-enterprise transfers. As of now, we’ve got not acquired any bill era receipt”.
Responding to queries despatched by way of Moneycontrol, SREI said: “It has come to our word that an individual pretending to be a whistleblower is spreading rumors and misinformation about Srei Group anonymously. The claims made inside the unsigned letter, which is being circulated anonymously, are false and baseless. We trust that this is being carried out to malign SREI Group’s impeccable popularity and is a feeble try to blackmail and extort money.”
The agency introduced that it’s far making proceedings to authorities “for criminal conspiracy and tried extortion.”
Adding that the employer has a “properly laid out framework” according to with RBI tips for sanctioning and disbursing loans, SREI said: “We refute all of the allegations… proposals are after that authorized/rejected through empowered committees and no longer by way of any person; the business enterprise is often audited by way of several regulatory businesses and reputed auditors.”
Nirmal Lifestyle loan
Moneycontrol has visible one intra-agency sales deed of Rs 22.5 crore between Mumbai-based actual property firm Nirmal Lifestyle and its unit Nirmal Lifestyle Kalyan Private Limited, where – because the whistleblower letter had alleged – the loan regarded to have been ‘restructured.’
According to the sales deed papers, Nirmal Lifestyle got a loan of Rs 22.5 crore from SREI Equipment to shop for creation equipment from its unit on March 16, 2018. But within 12 days of getting the mortgage, Nirmal Lifestyle repaid loans well worth Rs 22. Five crores, which many of its devices, together with Nirmal Lifestyle Kalyan, owed SREI Equipment. This no matter the authorization letter citing that the cash sanctioned can’t be utilized in re-fee of the mortgage.
Both, SREI and Nirmal Lifestyle Limited, have refuted the prices.
“We have taken this loan from SREI against numerous property/residences/Land owned through Nirmal Group and the stated mortgage of Rs. 22. Five Cr has been availed through Nirmal Lifestyle against the assets owned by Nirmal Lifestyle handiest,” stated Nirmal Lifestyle, in reaction to Moneycontrol’s query.
“The price of the securities supplied under the mortgage agreements are more than the specified property cowl. We have present diverse loans with Srei and reimbursement is finished frequently as part of our contractual obligation,” it delivered.
SREI Equipment claimed that it had extended the loan to Nirmal Lifestyle towards its present belongings.
“We would love to disclaim that Rs 22.50 cr changed into financed with the aid of us to Nirmal Lifestyle to buy production system from its subsidiary Nirmal Lifestyle Kalyan. We have all the important documents corroborating that information. Further, the safety price created in our favor may be validated in CERSAI and with ROC.”
“Therefore, your assumption that we have financed to Nirmal Lifestyle for purchasing of Construction device from its subsidiary Nirmal Lifestyle Kalyan is factually wrong.
“We could additionally like to emphasize that providing financing solution to our customers with sensible protection cowl of diverse security blend and also a well-timed collection of dues after that, is our everyday course of business and in Nirmal Group of Companies too, there’s not anything out of the regular that’s worth highlighting.”
The whistleblower letter concludes via asking the Director of SFIO to conduct a forensic audit, “so that we do no longer end up the subsequent IL&FS.”