Developments from the past
Former SpiceJet promoter Ajay Singh is pulling out all stops to raise the hundreds of crores of rupees needed to take control of and keep the wobbling airline afloat. But a few small developments from his past could now come under closer scrutiny.
At least two state-owned lenders have named Singh and entities associated with him in their 'suit-filed cases' list, given to a credit information services provider.
The 'suit-filed' database, maintained under Reserve Bank of India (RBI) guidelines, is meant to alert banks and financial institutions (FIs) against borrowers that have defaulted on their dues to other lending institutions.
Argentum Electric Vehicles Pvt Ltd (AEVPL), one of the 11 firms in the Ajay Singh empire, named after the Latin word for silver, had availed of credit facilities from Syndicate Bank's corporate finance branch in Delhi in January 2012.
Documents filed by AEVPL with the ministry of corporate affairs (MCA) showed a charge of Rs 4 crore was created against the company's inventory and receivables. The facility comprised an overdraft account with a Rs 2-crore limit, a Rs 1-crore term loan and a Rs 1-crore LC (Letter of Credit) facility.
The term loan came with a moratorium of 12 months from the date of disbursement and required "repayment in 20 equal quarterly instalment of Rs 5,00,000 each... will start from the last day of the 15th month of first disbursement".
However, according to records with credit information agencies, which aggregate data of 'suit filed cases', this loan was classified as doubtful on June 30 last year. A sum of Rs 1.38 crore was due from AEVPL.
The list named Ajay Singh, Manprit Singh, Ashish Singh and Shivani Singh as directors. Another Singh group entity, Pan India Motors, had provided a corporate guarantee for the loan.
Text: N Sundaresha Subramanian and Sounak Mitra, Business Standard
Image courtesy: Wikimedia Commons