395 Calling attention to matter of AUGUST 22, 2003 utpent public impottance 396

SHRI ADHIR CHOWOHARY: What is the quantum 15.18 hr•. 01 money earmarked for West Bengal on this iSSue? (U) Situation artatng out of huge amount of bank MR. DEPUTY·SPEAKER: He will send the information duee outetandlng again. Fate)a ,Forging and to you in writing. Auto Part. Company, and atep • In SHRI ADHIR CHOWOHARY: Sir, please ask him to . taken by the Govemment regard thereto. do so. ... (Interruptions) [Translation)

MR. DEPUTY ·SPEAKER: I have already asked him SHRI CHANORAKANT KHAIRE (Aurangabad, to do that. Mr. Minister, send the details the hon: Members have asked for, in writing. ): Mr. Chairman, Sir, I draw the attention of the hon'ble Finance Minister towards the following matter SHRI ARJUN CHARAN SETHI: Sir, thi8 i8 a Calling of urgent public importance and request him to make a Attention on Bihar only. However, many Members have statement in this regard: raised other issues. ·Situation arising out of huge amount of bank dues MR. DEPUTY·SPEAKER: Not many, only four-five outstanding against Fateja Forging and Auto Pa~ Members have raised their issue8. Company, Aurangabad and steps taken by the SHRI ADHIR CHOWOHARY: Sir, the problem of Government in regard thereto· rivers is not confined only to Bihar. It Is an alI-pervading issue .... (Interruptions) THE MINISTER OF STATE IN TH6 MINISTRY OF FINANCE AND COMPANY AFFAIRS (SHRI ANANDRAO SHRI ARJUN CHARAN SETHI: You had better VITHOBA ADSUL): Mr. Deputy Speaker, Sir, my colleague approach your State Government. ... (Interruptions) Shri Chandrakant Khaire of Party has given notice for calling attention motion, I rise to reply in this [Translation] regard. MR. DEPUTY SPEAKER: Ram Vilas Paawan jl, why are you rising when your question has been an8wered. Hon'ble Khaireji always remains vigilant of his Parliamentary constituency. He has asked about the action ... (Interruptions) propoaed to be taken by the Government against Fateja Group of Company located in his Parliamentary SHRI RAM VilAS PASWAN: Mr. Deputy Speaker, constituency for its wrong deeds and the present situation Sir, hon. Minister has not replied about Phulya-Darajla. ... (Interruptions) of the company arose out of It. Fateja Groups of Company, Fate;a Brothers and Forging and Stamping Ud. MR. DEPUTY-SPEAKER: Rest of your queries Will And Fateja Forging and Auto Parts manufacturing Ud. be replied in writing. Companies are manufacturing. ¶ parts of two and four wheeler vehicles. This company was established is (Interruptions) 1968 and became pubRc limited company In 1980. InitiaJly, (English] under the leadership of Punjab National Bank. . .. (IntenuplJons) MR. DEPUTY-SPEAKER: Item No. 22~ ChandraIcart Khaire. THE MINISTER OF STATE IN THE MINISTRY OF YOUTH AFFAIRS AND SPORTS (SHRI VIJAY GOEl): ... (Interruptions) Parliament is discussing an Individual company .... MR. DEPUTY-SPEAKER: Nothing will go on record (Interruptions) except Shrl Khalre now. $HRI : It has to be tak~n ~ once it is admitted. ... (Interruptions) 397 Calling attention to ",."., of SRAVANA 31. 1925 (Saka) 398

KUNWAR AKHILESH SINGH (Maharajganj. UP): Mr. {English] Deputy Speaker, Sir, scam has taken place. . .. (Interruptions) MR. DEPUTY SPEAKER: Hon'b!e Minister. pIeaIe give the reply. SHRI ANANORAO VITHOBA ADSUl: It Is true that scam has taken place. .,. (Interruptions) ... (Interruptions)

SHRI CHANDRAKANT KHAIRE: A bungling of Rs. 850-crores has been committed. ... (Interruptions) SHRI ANANDRAO VITHOBA ADSUL: They got loan SHRI ANANDRAO VITHOBA ADSUl: Govemment is as working capital from the banks and infrastructure ready to give reply .... (Interruptions) companies eet up under the leadership of Punjab National Bank. This company was doing weU till 1996-96, they MR. DEPUTY SPEAKER: What is this? gave dividend a180. But later on in the name of organisation and expanSion, they took loan through ... (Interruptions) share8, promoter's lunda and on the basis of tumover of some Organisatlon8. they even received loan from the {English] non-banklng Financial instftutlona at higher rate of intereat. MR. DEPUTY-SPEAKER: The hon. Minister is Since then, company'. condition 8tarted deteriorating. replying, you should not interrupt. AJongwith the higher rate of Interot, they had to pay higher rat.. for the borrowings from Private Financial ... (Interruptions) companies. Consequently, mismanagement started and the company began to make 10..... I have mentioned {Translation] 206.30. the company apent thia entire amount at that time. Unfortunately, at that time automobile indu8try was SHRI CHANDRAKANT KHAIRE: I have the paaaing through the recesaion. This affected the company information regarding bungling of crore of rupees. ... adv.,...ty and in 1996-97, the company suffered a 1088 (Interruptions) of Rs. 187.30 erore. The company continued to suffer 108888 for many years. In 1999 the company was closed MR. DEPUTY-SPEAKER: That's why notice for calling down. The company had approached BIFR in 1997. On attention motion has been admitted. 24th March, 1999 BIFR declared the company as a 8ick unit. ... (Interruptions) ... (Interruptions) Through Ita management, company filed an appeal SHRI CHANDRAKANT KHAIRE: Mr. Deputy Speaker, against It but It wa. dismissed. Thereafter, through the Sir, only 10 minutes have left and I have not ralaed my advertl88ment of ICICI in newepapera, they Informed about questions till now.... (Interruptions) the change of management but no reepon88 was received MR. DEPUTY SPEAKER: You would be able to raise and nobody came forward. Thereafter the company was questions. That's why it has been taken up. locked out. Then BIFR suggested that the Management and ICICI together should give a good propoeal but no ... (Interruptions) such proposal came and ultimately the company was wound up. The criminal c.... were flied againat the SHRI VIJAY GOEl: Mr. Deputy Speaker, Sir, can promoters of the company because of the mismanagement Parliament discuss an individual cof1l)8flY .... (IntetrIJpIioM) and they did not repay the loans taken from the banks. IFCI aleo filed criminal cases against them for not issuing SHRI CHANDRAKANT KHAIRE: Why are you the chequea. This company had taken over the Singapur disturbing? You are not a Member rather you are a branch of Bank of after passing a loan of 12.5 Minister. ... (Interruptions) million US dollars. The company had taken some funds from this branch as an allowance to purchase machinery MR. DEPUTY -SPEAKER: Khaireji, you yourself are but they spent it elaewhere for which Bank of India filed wasting your time. You please be calm and quite. a caae In CBI. This is the present condition of the company. I am aware what Khairep wants. He Ie worried ... (IntenvptioM) about mo .... than 4500 woli

[Shri Anandrao Vithoba Adsul] but he was not found. He was 88IUng out machinery In for the last 3·4 years since the company has been wound the name of scrap. When the IndU8try workers went there up. As per the wor1

is also outstanding. Besides this the amount of empIoyeea .and how the money was withdrawn from the banks. The is also due. The machinery scrap of the company was guilty offlcerI should be suspended and CBI Inquiry should worth Rs. 100 crore but with the help of fake documents be conducted regarding all the cases Including Bank of It was sold in Rs. 35 lakh. The police and other officials India. How Rs. 500 erore of banks will be recovered as did not pay attention to the transport of the scrap. When the owners who had taken loan have gone to abroad. the scrap. of the company was being transported to other Four·fIve workers have died and rest are dying of hunger. places after breaking the seal of the provided Fund Tha action should be taken against theee officere of authority. the workers approached there and lied before Punjab National who are found guilty. It Is public money. the trucks and demanded their dues. Despite the court " such things happen then what message will go the order scrap was transported with the help of forged people. The owners of Fateja company should be documents. It was mentioned in the fake document. extradited and the entire amount Ihould be recovered from them. The strict inquiry should be held by eBI {English] against the guilty officers. I would Hke to demand that the workers should get their money. ·With reference to the above subject. we have sold this scrap. cable wires etc. The total scrap is 700 {English} tonnes. ft MR. DEPUTY·SPEAKER: As a epeelal case, I am {Translation] permitting Shri Shivali Mane. Today being the last day of thle ....ion, I am going liberally. Such huge scrap worth Rs. 100 crore was sold In only Rs. 35 lakh. The person who prepared forged {Translation] document and put him signature was the owner of Fateje. I would like to submit that today we have passed lOBI SHRI SHIVAJI MANE (Hlngoll): Mr. Deputy Speaker, Bill. We should also ponder over the functioning of the Sir, hon'ble Chandrakant Khalre /i has moved calling banks. If Rs. 25,000 of a bank is outstanding against attention motion on the recovery, however through you, anyone, it is recovered. The minister of the concemed I would like to submit that NPA of banks's above one department relating to banking belongs to our party. lakh crore rupees. Hon'ble Chandrakant Khaire ji has However. I would like to allege the banking Ministry that asked about the recovery from only one company, that if someone want to take a loan of Rs. 1 lakhs, he has is, Fateja. Infect there are many such oompanies against to visit the bank hundred times. which crores of rupees are outstanding and for which the Government have introduced one time settlement scheme. MR. DEPUTY·SPEAKER: Are you alleging the If the marginal farmers take a small loans of Rs. 2()"25 Minister of banking. thousand and they fall to repay it, their agricultural field SHRI CHANDRAKANT KHAIRE: I am alleging the and houses are attached. I would like to know whether banking administration. Suppose there is a middle class the Govemment propose to attach the properties of such industrialist. He has working capital amounting to Rs. 5 people who are not repaying loans and bring legislation crore or Rs. 10 crore. it is not easy for him to get loan. at the earliest in this regard. Otherwise several years will .~ If one Intends to take loan in three digit or four digit, that be wasted in legal altercation in BIFR, DRT, High Courts is, Rs. 100 {;rore or more than that, then the loan is and Supreme Court. sanctioned to him. If our people's representative ring up SHRI ANANDRAO VITHOBA ADSUL: Mr. Deputy any bank and tell them that so and 80 child is poor, Speaker, Sir, I respect my colleagues hon'bIe Chandrakant please give him loan, they will not give loan to that child. The officers of the banks were aware that there is dues Khalre Ii and Mane Ii and also respect their sentiments. As I said in the beginning that the company was of the banks and the company was sealed yet the functioning well till 1996. lOBI Punjab National Bank, tCICI, administration of the said five banks did not act State Bank of India IFCI and Bank of India have been accordingly. mentioned. They had also provided loans to the company. Sir. I would like to submit that there are several It had al80 taken loan for the expansion and such companies which have swallowed public and modemiaation. Then there wa. receaslon In Automobiie Government money. Thorough inquiry should be sector and the company continued the function in 1088. conducted against such companies. The enquiry should ... (Interruptions) As I have told earlier that their also be held regarding the mismanagement of the banks mismanagement was also responsible for that. It was on * • 403 Calling attent;on to matter of AUGUST 22, 2003 404 urgent public importance

[Shri Anandrao Vithoba Adsul] 15.42 tn. account of that loss that the company could not overcome difficulties. Cases have been filed against them by the MATTERS UNDER RULE 3n* banks. Case is pending in DRT and Bank of India has (I) Need to clear the propo.. 1 of the Government also registered case with CBI. Everything will automatically of Qularat to upgrade certain come betore us. Our colleague Shri Mane jl have COB.tal way. submitted that earlier there was no one time settlement . and State Highway. to National Highways. for farmers under cooperative Bank, however, now this [English} facilily has also been extended to them. Whether it Is loan of As. 10 thousand or Rs. 50 thousand they have. SHRIMATI JAYABEN B. THAKKAR (Vadodara): The also this facility. Member has asked second question Government of Gujarat had written letter to the Central regarding the recovery. In the last session Scruitnlsation Government to upgrade coastal ways to National Act was passed by the same House and has also been Highways and other 13 State Highways to National enforced. The property of the wiHul defaulters has been Highways. The matter has not been resolved as yet. mortgaged and it is under the possession of banks. Banks can sell il oul 10 recover the loan amount. The steps I urge the Govemment to resolve the issue at the have been taken in this direction and this process Is earliest. continue. Last year in 2002, NPA of Public Sector was 12 percent which has reduced to 4.6 perc.nt. It means (II) Need to retain Brahmavart railway alation and that recovery has improved under the on.tlm.... ettlem.nt convert narrow-gauge line between Uandhna and it is also being done under the Serutlnisation Act. and Blthoor Into broadglluge In U.P.

As far the property of Fatehja group of companies is [Translation} concerned, their property is under the possession of bank and criminal cases have been also registered against SHRI SHYAM BIHARI MISHRA (Bllhaur): Mr. them. One day they will be brought to book whereever Speaker, Sir, Bithur is an ancient, historical and religious they go. Today I can say only this. place under Kanpur metropolis. On the Brahmavart Ghat in Blthur, there Is the 'Khuntl' of mythological character SHAI CHANDAAKANT KHAIRE: Sir, Rs. 500 crore "Brahma', Balmiki Ashram, the place of austerity of mother are outstanding against them. How will It be recovered. 'Slta' and the birthplace of Luv-Kush Is situated there. I would like to know whether CBI inquiry will be held by Boy Dhruv had practiced austerity at 'Ohrub-Teela'. this the Government against them. is the place of work of Rani Laxmibal, T antya Tope and MA. DEPUTY SPEAKER: CBI enquiry is going on. Nana Saheb. The Britishers had set up a railway station in the name of 'Brahmavart' . A rail tracks of 20 Kms . ... (Interruptions) from Mandhna Junction was laid down and It is working since then. Now the railway department have closed this SHAI CHANDRAKANT KHAIRE: I want to say that railway station. Now rail tickets are being sold on contract olher Industries should not do so. The Gov.ernment must basis here, all signals have been uprooted. The meter think over it. ... (Interruptions) gauge line from Mandhana to Brahmavart has not been SHRI ANANDRAO VITHOBA ADSUL: I would like to included In the gauge conver$lon work between Kanpur- say that please give the additional information in writing Farrukhabad rail line. It appears that the department of you have With you. The Government will hold an enquiry railway wants to scrap the operation on this line. This IOto it. has caused great resentment among resident of the area especially the sadhus. I would like to request the Union (Interruptions) Government and the hon. Minister for Railways that status [English) quo be maintained for Brahmavart railway station and the meter gauge line between Mandhana and Blthur may MR. DEPUTY-SPEAKER: Matters under Rule 3n be be converted Into broad-gauge line 80 that historical treated as laid on the Table 01 the House, Including the character of ancient and religious places could be stand-by list of the Members permitted as a special case. maintained.

'Tr~at~ as laid on the Table.