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Last Updated : Dec 29, 2018 01:28 PM IST | Source: Moneycontrol.com

From Nirav Modi to IL&FS, 5 loan deals bankers wish they hadn’t signed

Multi-crore scams struck India in 2018. Check out the biggest five that made headlines.

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The year started badly for the banking sector with the infamous scam pulled off by diamantaires Nirav Modi and Mehul Choksi, in which they issued Letters of Undertaking worth over Rs 13,000 crore from a single branch of Punjab National Bank. The Central Bureau of Investigation (CBI) has registered a case against Modi and Choksi, who have fled the country. Many have been arrested in related to these scams by the CBI. (Image: Reuters)
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The year started badly for the banking sector with the infamous scam pulled off by diamantaires Nirav Modi and Mehul Choksi, in which they issued Letters of Undertaking worth over Rs 13,000 crore from a single branch of Punjab National Bank. The Central Bureau of Investigation (CBI) has registered a case against Modi and Choksi, who have fled the country. Many have been arrested in related to these scams by the CBI. (Image: Reuters)

The non-banking finance sector was hit in September as Infrastructure Leasing and Financial Services Limited (IL&FS) subsidiary companies started defaulting on loans. On 1st October, the Ministry of Corporate Affairs appointed a new board for the company. On the same day, Serious Fraud of Investigation Office started investigating the company. Following this, NBFCs in India faced a severe liquidity crunch, the aftershocks of which were felt in the debt and equity markets. (Image: PTI)
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The non-banking finance sector was hit in September as Infrastructure Leasing and Financial Services Limited (IL&FS) subsidiary companies started defaulting on loans. On 1st October, the Ministry of Corporate Affairs appointed a new board for the company. On the same day, Serious Fraud of Investigation Office started investigating the company. Following this, NBFCs in India faced a severe liquidity crunch, the aftershocks of which were felt in the debt and equity markets. (Image: PTI)

Rotomac Industries, a Kanpur-based manufacturer of pens and other stationery, defaulted on loans worth Rs 800 crore from five state-owned banks. Promoters Vikram Kothari and his son Rahul were arrested by the CBI in February. Rotomac had taken around Rs 3,695 crores from a consortium of seven banks. The company claimed fame in the late nineties with advertisements featuring Salman Khan and the tagline "Likhte-Likhte Pyaar ho Jaye".
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Rotomac Industries, a Kanpur-based manufacturer of pens and other stationery, defaulted on loans worth Rs 800 crore from five state-owned banks. Promoters Vikram Kothari and his son Rahul were arrested by the CBI in February. Rotomac had taken around Rs 3,695 crores from a consortium of seven banks. The company claimed fame in the late nineties with advertisements featuring Salman Khan and the tagline "Likhte-Likhte Pyaar ho Jaye".

Another default came from Gujarat-based Sterling Biotech, which failed to repay loans worth Rs 5,383 crores as on December 31, 2016. The CBI registered a case against the company directors Chetan Jayantilal Sandesara, Dipti Chetan Sandesara, Rajbhushan, Omprakash Dixit, Nitin Jayantilal Sandesara and Vilas Joshi and chartered accountant Hemant Hathi and former director of Andhra Bank Anup Garg. (Image: sterlingbiotech.in)
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Another default came from Gujarat-based Sterling Biotech, which failed to repay loans worth Rs 5,383 crores as on December 31, 2016. The CBI registered a case against the company directors Chetan Jayantilal Sandesara, Dipti Chetan Sandesara, Rajbhushan, Omprakash Dixit, Nitin Jayantilal Sandesara and Vilas Joshi and chartered accountant Hemant Hathi and former director of Andhra Bank Anup Garg. (Image: sterlingbiotech.in)

Nilesh Parekh, a Kolkata–based gold trader and promoter of Shree Ganesh Jewellery House, was arrested by the Directorate of Revenue Intelligence for allegedly siphoning off 1,700 kg of imported duty-free gold and defrauding 25 banks. The CBI had arrested him earlier for allegedly embezzling banks by siphoning off loans worth Rs 2,672 crore through hawala channels to dummy companies in Singapore, Dubai and Hong Kong. (Image: Facebook)
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Nilesh Parekh, a Kolkata–based gold trader and promoter of Shree Ganesh Jewellery House, was arrested by the Directorate of Revenue Intelligence for allegedly siphoning off 1,700 kg of imported duty-free gold and defrauding 25 banks. The CBI had arrested him earlier for allegedly embezzling banks by siphoning off loans worth Rs 2,672 crore through hawala channels to dummy companies in Singapore, Dubai and Hong Kong. (Image: Facebook)

First Published on Dec 29, 2018 01:28 pm
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