*REAL INSIDE EXPOSE OF NPAs*.         
       
NPAs have been hogging limelight since 2 weeks after 12 defaulters are being dragged to IBC/NCLT. And false hopes are being raised that this action will enable recovery of major portion of NPAs. However, public is not aware of real rotten state of affairs which we are exposing hereunder. PLEASE READ IN FULL    
*In most of large NPAs,  Banks  have NEGLIGIBLE  collateral. *In most of cases, these defaulting borrowers were sanctioned limits in the form of Corporate loans, Standby L/Cs or Discounting of bills of sister concerns, Book debts of associate concerns, Overseas assets like oil blocks at Mozambique where no lien can be created.  *Many of these accounts have been repeatedly restructured by all lenders in violation of banking norms*.  *All these borrowers have been defrauding banks in connivance of Top Management and all this was happening and in the knowledge of RBI for more than a decade*. The entire Public Sector banking system has almost collapsed
*There had been not only Double financing but multiple financing.  Bank limits were sanctioned against non-existent/false Stock/book debts and parties were allowed to discount bills of those parties to whom book debts limits were granted Not only these parties were availing Buyer's credit or Supplier's credit against same security.The Valuers and Legal Advocates have deliberately overstated the value of collaterals and issued non- encumbrance certificates without proper verification. *Incase of consortium/ multiple banking, there was no credit monitoring and every member of consortium was blindly following lead bank* *The lead bank was simply doing clerical job of forwarding the D.P without verification* *Loans were disbursed without promoter contribution.and without complying terms and conditions*.  *In my view all these borrowers have siphoned off and remitted LARGE funds outside through banking channel by Overstating imports and understating Exports.* *Under the aforesaid situation,  banks may not recover any significant amount at all*

_Amtek Auto group_ resorted to bogus billing to inflate financials and siphon off funds. Lenders may recover just peanuts. It is a gone case. Same with Era.

_Alok Industries_ continued to make fool of lenders through repeated borrowings without any results. Bankers were sleeping for years, never bothered to find that MASSIVE diversion of funds through over invoicing of entire projects

IBC IS TOO LITTLE TOO LATE. IT IS LIKE BOLTING THE SHED AFTER HORSE HAS FLED/GIVING CROCIN TO A PATIENT IN ICU/COMA

Essar Steel: Here blame lies ONLY with lenders. This is a rogue group, serial/habitual financial offender. Essar Steel had already once driven knife in lenders' stomach through OTS taking big haircut. How lenders again gifted 40000 Cr to well-known thief of India Inc? Their privately held companies in BPO Real Estate and many more made fat profits and sold for astronomic sums/ profits. Only Forensic audit by globally acclaimed agencies will reveal how funds regularly diverted