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After Rotomac, second loan default of Rs 4,000 crore in Kanpur

India Today logo India Today 01-03-2018 Ranjay Singh

© Getty After the alleged swindling of Rs 3,695-crore of bank loan by Kanpur-based Rotomac Pens, another case of loan default has surfaced in Kanpur with Shri Lakshmi Cotsyn Limited (SLCL) defaulting on around Rs 4,000 crore provided by a consortium of 16 banks.

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(Provided by The Times of India)

SLCL manufactures home furnishing products, technical textile products and ballistic products. The principal exposure of main banks as of 2017 is Rs 1544 crore- Syndicate Bank Rs 323 crore, Bank of Baroda Rs 248 crore, Central Bank of India Rs 444 crore, Union Bank of India Rs 320 crore and Punjab National Bank (PNB) Rs 209 crore.

Complete coverage of PNB scam 

SLCL "needs another Rs 250 crore immediately to run its six factories". Chairman and managing director MP Agarwal told India Today that "an immediate capital infusion of Rs 250 crore is required to run the factories so that the principal amount can be paid from profit earned". "In one year, we will be fully operational if we get Rs 250 crore to start with. Another Rs 200 crore would be required after one-and-a-half year".

Agarwal also said that he has customers and the required workforce. "We are trying to tap some investors and some of them are interested. We will find a solution in three to four months."

When asked about rumours that he doesn't want to repay the loan like Rotomac owner Vikram Kothari and celebrity diamantaire Nirav Modi of the infamous Rs 12,636-crore PNB scam, Agarwal shot back, "The assessment and comparison are wrong. We invested the loan amount in our factories."

Agarwal also rubbished rumours that he is planning to flee the country and has bought property abroad. If someone proves that I have bought property using the loan amount, you can behead me," he said.

The Kanpur-based group is being probed by the CBI and the Enforcement Directorate (ED) in connection with the alleged swindling of Rs 3,695 crore of loan funds advanced by a consortium of seven banks.

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