Bank Loans Scam: Banks start process to get back builders dues

Mumbai: Three years after Zoom Developers defaulted, a consortium of 25 state-owned banks have started the process to recover Rs 3,002 crore loan dues from the construction firm.

On Wednesday, United Bank of India along with 24 other banks issued an advertisement to auction properties given as security by Zoom, but now attached with the banks.

Among eight properties put on the market, two are at Andheri; a 3.4-acre plot in Chakala with a reserve price of Rs 21 crore and another a 900 sq mt plot in MIDC with a reserve price of Rs 11 crore. Their other properties are in Khopoli and Indore.

The banks have taken the action to attach collateral property after Zoom Developers, its promoters Vijay Choudhary and B L Kejriwal, and its guarantors failed to repay the said amount despite demand notices earlier this year.

There was no response to calls made on the office telephone number listed against Zoom by TOI.

Meanwhile, CBI has begun examining allegations of banking fraud in loans disbursed to Zoom.
Courtesy:
Rajshri Mehta TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/20&PageLabel=7&EntityId=Ar00706&ViewMode=HTML

CBI question banks on Rs 2,500 cr loan to Zoom DevelopersThe Central Bureau of Investigation (CBI) has begun preliminary examination of allegations of banking fraud in loans worth Rs 2,500 crore disbursed to Zoom Developers, a Mumbai-based project developer.

Confirming the approach made by CBI, two senior public sector bank executives said the agency had questioned banks on the borrower (company), which is already being treated as a non-performing account (NPA). There is also a question about the use of funds.

The CBI is acting on a complaint made to the government. The Reserve Bank of India  is also likely to get into act, since this is a case referred for debt restructuring, officials said.

Punjab National Bank  is lead banker to Zoom. In all, 27 Indian banks, most of these public sector ones, have lent Rs 2,500 crore to the company. Its loans were admitted for corporate debt restructuring in the fourth quarter of last year.

Bank guarantees given for Zoom have been invoked. Punjab National Bank is the lead banker, with about Rs 450 crore of exposure of which nearly Rs 300 crore has been considered as an NPA by the bank from the first quarter of this financial year.

A bank official said Rs 250 crore of the exposure is covered by insurance. The bank had taken insurance cover from Export Credit Guarantee Corporation of India Ltd. As for the defaults, all relevant departments, including vigilance and audit, are looking into the matter, he added.

The majority of Zoom’s projects are abroad, particularly in Europe and the UAE. It undertakes business and project development work, involving process plants, industrial and engineering projects, and energy, environment and infrastructure ones.
Courtesy:
October 7th, 2010
http://www.forum4finance.com/2010/10/07/cbi-question-banks-on-rs-2500-cr-loan-to-zoom-developers/