India’s next bad debt where the bank has announced auctioning the company’s property to recover it. The bank has announced that it will be auctioning off assets owned by Great Indian Tamasha, which served as a guarantee for Great Indian Nautanki, for the non-payment of about Rs 148 crore in loans to IDBI, HDFC and Bank of Baroda.
The Great Indian Nautanki has borrowed Rs 86.48 crore from IDBI Bank, Rs 6.26 crore from HDFC Bank and Rs 49.23 crore from Bank of Baroda. The land of the guaranteed Great Indian Tamasha Company is being auctioned off for non-repayment of the loan.
According to the IDBI announcement, “11.53 crore rupees worth 107.24-acre land in Peroor village in Karnataka’s Kodagu district, owned by Great Indian Tamasha, will be e-auctioned on July 27 for a loan of Rs 92.69 crore, including interests up to May 1, 2022”.
Who is this Great Indian Nautanki & Tamasha?
Great Indian Nautanki is a Delhi-based company founded in 2007. The company runs entertainment venues and events with the aim of promoting Indian culture and art shows. Nautanki is one of the most popular folk theatre art forms in North India.
One of the company’s major events is the Kingdom of Dreams tourist site in Gurgaon, near Delhi. In addition, it includes the Nautanki Mahal and cultural education. Founded in January 2008, Great Indian Tamasha is a Non-government company with a share capital of Rs 2 crore.
The two companies’ guarantors and directors are Anumod Sharma, Dr Anu Appaiah, Viraf Sarkari and Sanjay Chaudhary, S.G. Investments, Great Indian Tamasha and Wizcraft International Entertainment Pvt.
In 2011, Great Indian Nautanki sought to raise Rs 200 crore for future expansion by selling a 20% stake. In 2013, Wizcraft International Entertainment and real estate firm Apra Group confirmed plans to set up a live entertainment centre (Kingdom of Dreams – 2) in Mumbai worth Rs 500 crore.
“Gurgaon’s Kingdom of Dreams faces funds crunch. The promoter of Kingdom of Dreams (KoD), a complex of auditoriums built in 2010 has sought financial support from the ministry of tourism to stay operational. The firm applied for large-scale foreign exchange funding of about Rs 100 crores from the tourism ministry two years ago but nothing materialised, said Sharma”, reported Hindustan Times in 2014.
“According to RTI information received by Harendra Dhingra, the company has acquired 6 acres of land from the Haryana Urban Development Authority for a rent of Rs 36 lakh per annum to set up the Kingdom of Dreams tourist centre. However, it has been reported that the company has not paid a single rupee till now. The amount for this is Rs 42 crore. In addition, the company was accused of borrowing up to Rs 150 crore from IDBI and other banks in the name of the leased land”, according to an article published in 2017 on the MoneyLife website.
There has been a land-based issue where the Kingdom of Dreams centre, run by the Great Indian Nautanki, is located. Also, the land owned by Great Indian Tamasha, which had pledged to repay about Rs 148 crore in loans taken from banks like IDBI, HDFC and Bank of Baroda due to the financial crisis, is being auctioned off.
We continue to see private companies turning millions of rupees of bank loans into bad debts without repaying them. But only a small amount of those loans are auctioned off by the banks. When such events occur, questions arise as to whether banks lend generously only to corporates, but follow several terms and conditions to lend only to ordinary people.