In 72 hours, IDBI Bank Releases 3 Figures of Loan Defaults by Diamantaire Group Sanghavi Exports
IANS 21 December 2021
In a strange development, the government-backed private sector IDBI Bank Ltd here has revealed three different figures of the alleged loans defaulted by a well-known diamantaire group, surprising banking and diamond industry circles.
 
Late on Monday, IDBI Bank Ltd, in a regulatory filing, clarified an article by IANS (20th December) that the diamantaire group had allegedly defaulted on loans worth around Rs6,710 crore.
 
The IDBI Bank Ltd further said that the company, Sanghavi Exports International Pvt Ltd, an NPA with the Bank, plus other group entities and its promoters/directors/guarantors, only has a current principal outstanding of Rs16.72 crore and the "account is fully provided" with action taken to recover the dues.
 
On Tuesday (21st December 21), the IDBI Bank Ltd issued a fresh public notice stating that the outstanding amount from the same Group is around Rs67.13 crore.
 
"The outstanding amount has been wrongly published on 19-12-2021. Notice of default with correct outstanding is published," said the new public notice on Tuesday, confounding the banking fraternity.
 
IDBI has revealed three contradictory figures of outstanding amounts in just 72 hours, 'raising questions over which is the real figure', said banking expert and All India Bank Officers Association leader Vishwas Utagi.
 
"This is outrageous... A big bank backed by the Centre and LIC cannot make such blunders, with the upcoming LIC IPO. They must clarify which of the three outstanding amounts' figure is genuine? If indeed any recoveries are made, they must publicly state when, how much, and into which account," Mr Utagi demanded.
 
Slamming the 'confusion' and differing statements, Shiv Sena's Bhartiya Kamgar Sena general secretary, Dr Raghunath Kuchik, accorded the minister of state (MoS) status, asked how—under such circumstances—the government can think of going ahead with the LIC IPO?
 
"For years, the LIC has been taking care of organised-unorganised labour. I urge the Centre not to put the common man's money, savings, and confidence into jeopardy till this issue of the IDBI Bank-diamantaire group is properly probed and resolved," said Dr Kuchik, who is the crucial Maharashtra minimum wages board chairman.
 
Interestingly, the public notices of 19th December and 21st December also clearly mention the outstanding foreign currency component—US$161088—which does not appear in the SEBI (Securities and Exchange Board of India) declaration made by IDBI Bank Ltd.
 
The bank's SEBI filing stated that 'the account is fully provided', while the two public notices have warned the masses against any kind of dealings with the properties of the promoters/directors/guarantors as huge dues are to be recovered from them.
 
Interestingly, IDBI Bank Ltd's spokesperson and its official communication agency did not respond to a questionnaire sent on 20th December by IANS.
 
One of the group members, Aagam Sanghavi—who is named by IDBI Bank Ltd in its public notices—also strongly denied the bank's figures of default (19th December public notice), and a woman purportedly belonging to the family declined to reveal her full identity, but contended that the amount in the public notice (19th December) was a 'typo' and warned of legal consequences.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 
Comments
david.rasquinha
5 months ago
I thought IDBI has clarified that this is an old account where the principal outstanding is 16. 72 crore, which has been fully provided for. Total dues including interest etc. (unbooked as the account is NPA) would amount to around 67.12 crore and NOT 6710 crore. IANS needs to answer how it made 67.10 into 6710! As for the FCY, USD 1.61 lakh is around INR 1.22 crore, presumably included in the 16.72. Seems to be much ado about nothing.
sucheta
Replied to david.rasquinha comment 5 months ago
Not so simple -- please LOOK at the image in the story. IT is an advertisement by IDBI bank not IANS -- it has photos of defaulters. The amount mentioned and LATER corrected was not just 6710 but also an USD amount. You may need a magnifying glass to see it. or can send on text message
david.rasquinha
Replied to sucheta comment 5 months ago
Yes, my apologies, IDBI has clearly goofed. My old eyes could not make out the number in the Public Notice.
Kamal Garg
5 months ago
Is this a mockery of public institutions' sensitivity and handling of public money and trust. Is this also not the reason for non recovery of due debts because no body knows what is the right due amount. I have often experienced that the bank officials talking to their defaulter customers to just give "some" money so that the account can be "greened" and they can show to their higher-ups that they are on the job and have recovered something and in the process, no body is bothered what is due and what is recoverable or otherwise.
dravinash23porwal
5 months ago
What three figures ,one figure of 6000 cr is not by idbi bank .other two figures are miniscule in comparison and already NPA with bank so doesn't matter.Also IDBI Bank and all other banks have history of such things so better let it be sold to private entities at the earliest. RIL,BAJAJ,ESCORTS OR JP MORGAN etc.let EOI FOR IDBI come before dates of UP Elections
sucheta
Replied to dravinash23porwal comment 5 months ago
The figure is very much by IDBI bank in the last line of the first image above. In fact, there is an additional dollar figure! Bank is certainly answerable and not the wire agency!
dravinash23porwal
5 months ago
My dear whatever the amount is its not 6000 cr ,it may be 16 or 60 cr and already an NPA with the bank so doesn't matter .
This news is floated to stop privitisation of IDBI Bank and LIC IPO by vested interest
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