CALCUTTA, March 9: Elque Polyesters Ltd managing director Abhijit Sen, a Rs 200-crore plastics project in West Bengal set up last year, has left India for an undisclosed destination in the midst of investigations by the enforcement directorate.Sen (no relation of Nicco co-chairman Abhijit Sen) holds a stake of around 64 per cent in Elque together with other promoters, while the public holding is 16 per cent. The company's sole unit at the Falta Export Processing Zone was opened with much fanfare in January 1997, and has been lying closed since last month. The largest unit at Falta, it produces PET resins used to make PET bottles and containers.
The enforcement directorate is investigating Sen's links with Russia's Mayfair International and one Amrit Mehta -- also based in Russia -- and with a company in the United Kingdom.
The enforcement directorate had issued several summons to Sen, his father Anil Sen -- who is the chairman of Elque -- and a number of other persons including a Calcutta stockbroker AKampani of VCK Capital Markets Ltd.
Sen was supposed to appear before the ED authorities today. However, the ED officials received a faxed message from Sen's office expressing his inability to appear since he had to leave the country on urgent business.
Had he appeared before the authorities, his passport would have been impounded, officials said. The officials pointed out that chairman Anil Sen had duly appeared before the authorities and co-operated with them. ED officials also visited the office of the stockbroker, Kampani, who is said to be close to Sen.
The company had made a Rs 15.98-crore public issue at par in June 1996. The issue was subscribed to the level of 94 per cent, according to Elque officials.
Elque has an authorised share capital of Rs 47 crore and a paid-up capital of Rs 43.98 crore. It has taken secured term loans and foreign currency loans amounting to Rs 96.53 crore from banks and financial institutions, solely on personal guarantees furnished by Abhijit Sen and Plastosen Ltd,his first company.
Sen is married to the grand-daughter of Chief Minister Jyoti Basu's elder brother. Sen, who made no secret of his political connections, got his company started and running with a delay of only three months.
Elque reported a turnover of Rs 8.8 crore for the short accounting period from January 1, 1997, to March 31, 1997, its first and only available balancesheet. It showed a loss of Rs 2.05 crore during this period.
According to the unaudited financial results for the six months to September 30, 1997, net income from operations was Rs 35.15 crore and the net loss Rs 2.69 crore. According to the letter of offer, Industrial Development Bank of India had advanced a foreign currency loan of Rs 33.33 crore against the mortgage of all immovable and movable property and a corporate guarantee of a group company Plastosen Ltd and the personal guarantee of Abhijit Sen. The total outstanding to IDBI as on March 31, 1997, was Rs 39.32 crore.
A similar foreign currency loan of Rs 41.34 crore wassecured from the State Bank of India through personal guarantee of Sen and a collateral irrevocable corporate guarantee from Plastosen. The total outstanding to SBI as on March 31, 1997 is Rs 42.65 crore.
According to the annual report, it has also secured a working capital loan from banks of Rs 13.77 crore "by hypothecation of stocks and book debts and a corporate guarantee of a public limited company and personal guarantee of the managing director".
SBI Home Finance has also advanced a term loan of Rs 79.12 lakh secured by way of equitable mortgage of the housing colony at Falta Growth Centre and a corporate guarantee of a public limited company and personal guarantee of the managing director.
