Nagpur: In the backdrop of the Rs94 crore loan frauds revealed at Dena Bank, the spotlight is on a chartered accountancy firm from the city. M/s Ajay and Amar Associates has been linked to numerous loans that have turned Non-Performing Assets (NPAs) across PSU banks in the city since last two years.Dena Bank has filed a complaint with the Institute of Chartered Accountants of India (ICAI) about this firm. Some PSU banks have banned dealing in loan cases through this firm.After suffering losses, regional offices of many banks here have taken policy decisions not to entertain finance cases pushed by the firm. Even if the prospective borrowers have a balance sheet signed by the chartered accountancy firm, bankers are wary of processing the loan case.The case came to fore after the crime branch registered offences in two loan cases worth Rs6 crore at Dena Bank on Monday. A different firm — M/s SM Kothawala — has been named in the FIR for allegedly misrepresenting facts. So far there is no FIR against M/s Ajay and Amar Associates, but many loan cases with financial statements signed by the firm are under the scanner.Dena Bank here is currently saddled with NPAs worth over Rs200 crore, with a majority of the accounts linked to this firm. In October 2017, Dena Bank had even sent a complaint against M/s Ajay and Amar to the disciplinary committee of Institute of Chartered Accountants of India (ICAI) — the regulatory body. However, ICAI asked the bank to apply in a prescribed format. The matter is now entangled in procedures at the bank’s end. In the meantime, the firm has been barred by the bank.The firm is run by brothers Ajay and Amar Agrawal, who have apparently shifted to Mumbai now.Commenting on the issue, Amar Agrawal said it is up to the banks’ perception. He said the firm continues to act as internal auditor for five banks, including Union Bank, UCO Bank Syndicate Bank and Bank of India. These appointments are made on the basis of empanelment, he said.In 2015-16, Ajay and Amar were also internal auditors for Dharampeth branch of Dena Bank. The firm has been removed, with orders not to appoint it again. After the FIR, Dena Bank’s managing director is learnt to have met RBI top officials to apprise them about the case.Sources say Dena Bank alone has 20 loan accounts worth Rs95 crore where M/s Ajay Amar have been involved. All the accounts have turned NPAs, but have not been declared as fraud cases as yet. A loan account is declared as fraud by the head office after considering many factors. However, loans have certainly turned NPAs, said a source in the bank. Procedural lapses in granting the loans are also being internally probed.“It was found that the company presented a rosy financial state of the borrower before availing loans. The accounts signed by the firm too have unusually good financials, which gave a wrong picture to the officials granting the loans. Finally, after many such cases, it was decided nearly two years ago not to entertain M/s Ajay and Amar any more,” said a source in Dena Bank.A source in Bank of Baroda too confirmed a similar decision being taken in the organization. A senior officer of another PSU bank said on condition of anonymity, “Since two years the firm has stopped dealing with the bank. This is because the bank itself stopped entertaining cases pushed by M/s Ajay and Amar.”Accused still criticalSameer Chatte of Anusuya Industries, who is accused in one of the loan cases of Dena Bank, continues to be critical after meeting with an accident on Tuesday. Chatte is the promoter of M/s Arena Industries, to which funds were transferred from Maa Anusuya Industries, the original borrower. There were rumours that Dilip Kalele of Maa Anusuya Industries was also hurt in the accident. However, police sources have clarified that he is safe. Chatte is undergoing treatment at Jabalpur.

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