SC SLAMS BANKS: ₹1500 CR LOAN SETTLED FOR JUST ₹73 CR? INTENSE ARGUMENT |

[00:00:00]misguided because it's also >> you are afraid from the CBI investigation investigation >> entire loss of the public money you fight yourself you this is your family dispute you fight yourself why you are opposing the investigation by the SFIO >> why you are opposing the investigation by the ED my >> this is your family dispute you solve this >> one minute Mr. Yeah. Now that you have misled and not you have you are misleading >> is not right. Now this is complet.

[00:00:26]>> Why you are afraid of why you are afraid of the investigation? It's a motivated thing at the behest of >> this is not only single case milert it is a tip of the iceberg how the loan is taken then companies declared themselves the bank bankrupt then this is the sold to the arc's in this case my loan is the 1500 cr it is sold in the 73 cr where the party >> I am the banks me banks and as the arc the responded targeting some individual entities.

[00:01:00]>> No mad individual entities. These are the frauders. Mead who have the nexus between bank and this individuals me. I am seeking the complete investigation.

[00:01:10]>> No. But then you please Mr. Pad.

[00:01:14]>> Yes.

[00:01:15]>> If if you want a direction against someone Yes.

[00:01:18]>> who is likely to be not likely to be directly affected.

[00:01:20]>> Yes.

[00:01:21]>> You have to imple respond.

[00:01:22]>> Yeah. They are the party me. The party number 16 17 18 and 16 17 and 18 15 16 17 18 this is the nexus mallet arc then that corporate banks are also party me there is a JKM group >> JKM JKM groups take the loan me these are advocates meot >> advocates all the three are advocates young lawyers Ernst and Young is the Mal auditor who disclosed this entire fraud. Then Malard later that auditor was changed.

[00:02:02]So and this is not the only case mallet if it will be investigated thoroughly then it will come as a biggest malad.

[00:02:09]>> So madam are you appearing?

[00:02:10]>> Please my lords I am on caveat. My loss this is a very serious concern how this has been filed on the same very same set of facts. There's a dispute between the two brothers. You are the respondent now Mr. You've argued.

[00:02:24]>> Yes.

[00:02:24]>> Which is respondent number 17 and 18.

[00:02:28]There's a dispute inter between the two.

[00:02:31]So respondent number 18 has first filed an FIR which is against the economic offenses wing. There is a closure report regarding that same set of facts and allegations. Then a writ criminal >> 17 has filed against whom? Malo uh 18 has filed against 17 and 16 and the comp and 17 >> company as well as the 17 can you pass on the compilation I have a compilation of those orders and I can show that this is a comp my current apparently they have been misled or misguided because it's also very >> you are offered from the CBI investigation investigation >> you allow me a minute I'm on a caveat here my lords have asked me a question now there's a repetition criminal that is filed My laws we filed your counter.

[00:03:18]You properly filed your counter.

[00:03:19]>> My words I my laws asked me a query. I'm only answering to that. I don't have to answer you. Now red petition criminal came to be filed on same set of facts.

[00:03:29]This petition that petition was dismissed by a reasoned order. My laws will find serial number two at page number six Delhi high court order. After that petition was dismissed then there was again a writt petition filed for Mangdamas to ed again by respondent number 18 here. the brother that came to be unconditionally withdrawn which my laws will find at page number four of this compilation my laws then they went to NCT saying that they should move to serious fraud wig now that also was then unconditionally withdrawn obviously the courts were not trying to interfere and they came to be withdrawn my laws then yet another FIR has been filed which is partly now my laws I come to this big statement that my one thing is very clear 1500 100 cr loan the 1,500 K loan have been settled in the 73 cr entire loss of the public money you fight yourself you this is your family dispute you fight yourself why you are opposing the investigation by the SFIO >> why you are opposing the investigation by the ED >> this is your family dispute you sol here my lad only because this is the involve the public money my lad it's a involve public money public money has been looted my >> learned friend may not interfere like that when I'm pointing ing out certain facts. Now one fact that my learned friend in his petition points out is an eny report. ENY report was done without taking any view of the company. The bank thereafter got AKG and company to carry out to carry out empanel auditor to carry out a report. My laws may turn to page number two in 2019 SBI one minute Mr. Rupadhya. Now that you have misled and not you have you are misleading >> it's not right now this is completely >> why you are afraid of why you are afraid of the investigation >> it's a motivated thing at the behest of >> why you are afraid of the SFI investigation I am just only seeking the investigation by the RBI SFI >> 8th April 2019 after getting the report from AKG which is the auditor of the bank after an opportunity to the company the bank then comes to a conclusion that there is no fraud in this particular ular thing why a complaint closes that.

[00:05:42]Now if my loss will turn over the page it was a CV.

[00:05:45]>> Tell us how how much was the loan liability and with how how much it has been >> my lords I would say that this the loan liability has been now quantified at 500 odd kores 520 kores by the DRT. The bank then assigned its debt to an arc. At the first instance, the debt was assigned to Phoenix >> Prudent >> through to Prudent. Prudent thereafter assigned its debt to Phoenix. Phoenix and there was a then Phoenix between Phoenix. It went to the DR. >> No, the bank assigned for how much?

[00:06:18]>> Well, was that we wouldn't know. That's a matter between the bank and between >> there was a publication. There was notice inviting expression by SBI.

[00:06:29]>> How will I know that? SBI has assigned that but SBI in publication fixed a reserve price of 120 crores at that time >> 20 >> my laws asked me a question can I answer that my loss my loss when the SBI assigned the loan to the prudent arc prudent it called for an in expression of interest at that time SBI in that notice inviting expression of interest fixed the minimum reserve price of 120 kores minimum. Our very our only concern is madam the family dispute is there out of personal mandata the one brother must have been filing harassing the other and must the other also doing against the same vice versa continue we are not concerned about that our only concern is that a loan of 1537 cr >> statement that is incorrect because DRT order of DRT noting it as 500 or can you file an epidos then I have one request to make here my loss they have joined ed everyone as a party here but if my lords issues notice to everyone I have an exposure to everything I will file my reply I will place all this on record consider my reply and thereafter if my lords are still not satisfied my lords may issue then a notice to the other parties but my lords it'll be very unfair because there have been five rounds of litigation before different authorities ities and before the high court every time the high court has turned down or they have withdrawn their petition because the high courts have not been inclined to interfere. My lad may I one minute my lad >> this is and I asked myself a question the eny report was in the private domain it wasn't a public report how is that access >> how is an access to all that material which is filed >> which was the which were the bank principal lender >> m was sbi but there were other banks now other banks are consortium of seven banks consortium of seven banks bank consortium Turn to page number 16 of his own petition. Please turn to page number 16 of his petition. It's an admitted position that I have settled many other loans with the banks.

[00:08:52]>> Reply my can I >> this is just like builder and bank fraud. Malot this is just like builder and bank fraud. Lords have already directed CBI to investigate my >> and this is much more meert. This is much more than the builder and bank fraud. My lord, banks are involved in this case. My office is at this.

[00:09:12]>> My lord, can I can I make one last submission for your consideration?

[00:09:17]>> Not my please issue the please issue the RBI SFU. Please don't dictate home to issue notice at this stage to respondents number two. Uh respond number uh respond number one and two 6 6 7 8 9 uh 6 6 to 11 6 to 11 today one that you have >> 14 to 19 returnable on who assisting We will accept my acceptance on behalf of respondents.

[00:10:03]>> We filed a caveat 16 respondent number 16 caveat of number 16 and 18 also.

[00:10:09]>> No my lord we don't appear for 18. 18 is the brother who has instigated all of >> 17 we'll accept notice 16 and you will not accept for kunics and this prudent arc.

[00:10:22]>> I can't they are separate arc. No you don't accept.

[00:10:25]>> I cannot. 16 and 17 the foreign will be filed within 4 weeks matter four weeks >> 19 is very important and young is the world's best auditors young this respondent number 19 please we should notice that >> my lords there is one aspect that I would request my lords also to notice and if my laws want to consider it now I have today this is the latest notice inviting expression of interest my laws will find there are loans of 1200 kores 3,000 kores and there is a reserve price which is fixed this is only one bank and it's a nationalized bank now in terms of the arc process it is being done every day my lords it is very strange in this particular pil that only one company that is JKM is mentioned and its details are given one minute.

[00:11:30]>> I'm seeking judicial commission that's why I'm that's why I'm seeking a judicial commission. Please >> please see my prayer. every there are so many other loans of much larger amount than this particular one >> that have my lords in this my lords will find 1200 kers 30 m >> my lords may turn to serial number 26 Ian holding >> if somebody will bring to our notice we can assure you we will will not spare anyone if if you find anything >> my will find and there is a >> anchor indulging in this kind of malpractices is unfortunately already some metal before by JKM but there are hundreds of such settlements which the banks have done with ARC why don't you why don't you point out in your counter >> I will do that >> we will we will do something about those also >> and also the fact is at that stage we are not involved the company is not involved it is an expression of interest from arc that particular assignment is only between the arc and the lead bank or the bank which is assigning the loan at that stage the borrower is not involved at all. It has nothing to do with that assignment and thereafter arc is >> my arc are the asset reconstruction companies which whom the loans are >> this is a new device madam please appreciate this is the most you know over clever device adopted by these banks yes >> to sell the loan liabilities to these arcs or something for peanuts you you take only 10% 15% and then allow them to fight because and they know very well that what are the assets. So ultimately the arc people they are also making money out of it but the net beneficiaries the borrower who ultimately regal out of it with by paying 15% 20% that's all >> sir and one interesting fact >> this is what my lords are saying but I in any case we will come back and argue it and the arc's will be before my lords but my lord >> we don't want question you see we know our limitations to go into commercial wisdom of the banks but if this is the commercial wisdom that you collect the taxpayers money, public money and you recklessly you release it and give them on loan and then you don't make any effort to recover it or the security which you take is far less value and then ultimately you say there is nothing that we can recover this kind of conduct is not acceptable >> then I would make one request I see my my loss are on the larger perspective my loss are not just adding it to me to the jually but my concern today is that Why have you got the facts and one company of JKM the before JKM and after JKM there may be hundreds of such loans. I have started my opening statement. This is the tip of the iceberg.

[00:14:22]>> Very frank it seems we are also having some suspicion that these petitioners have been planted by your brother.

[00:14:29]>> We can't say more than that. That is my >> we can't say more than that but a fraud having been brought to the notice of the court and if we shut our eyes this will be again perpetuating >> will put in our all the respondents have not settled the account through arc >> and that's why I'm seeking a judicial commission or sit that's why >> respond number nine >> I am seek that's why I'm seeking a judicial commission >> no they are practicing here malad meal I'm saying I am I am seeking the investigation of the larger issue. My laws is drafted by my earn it friend this petition. My laws we'll see who this is the only single this is the one tip of the iceberg but I am seeking the investigation of entire this nexus mer the bank and arc's nexus >> my lords all the respect >> settled the account through arc my lords we had directly settled it with the borrower we had entered into a directs with the borrower it's not through the arc >> anyway we will there is a dire need to look into the conduct and affairs of these arcs also frankly This is also the statute where complete uh deviation and complete go by to judicial application of mind. This recovery act surface in the name and creation of these arc is an issue probably that required to be revisited particularly in the context of public money. We are only concerned about public money. If a private lender gives 1,000 cr and is happy in return of 100 cr, we have nothing to do. We don't want to go into those transaction. But where taxpayers money, public money which should have been spent for the welfare of the people, if that has gone into private hands misutilized, siphoned and ultimately they have the last love that is what we are bothered and these arc are also hands in globe with banks.

[00:16:21]>> But we are not settled through the arc.

[00:16:23]There's a very deep rooted nexus between borrowers, arc and banker.

[00:16:31]Man,