NEW DELHI, JANUARY 20: Nova Steels, September, 1994: Promoted by R.K. Gambhir, public issue of Rs 33 cr is launched for setting up a steel mill at Bilaspur in Madhya Pradesh. Project yet to be commissioned and IDBI has moved the Debt Recovery Tribunal for recovering its money. Nova Iron and Steel, July 1994: Public issue of Rs 52 cr is announced to part finance its sponge iron project in Bilaspur. The project came up, but in 1997 was referred to the BIFR. Nova Udyog, October 1992: Promoted by RK's brother who split from him in July 1989, the public issue of Rs 14.5 cr is to produce steel billets, blooms and slabs at Haldwani district in Nainital. Commercial production began in 1997, and is now being liquidated. Nova Dhatu Udyog Ltd, October 1993: TN Gambhir, another brother who split, had this issue to part finance a plant at Margaon for the manufacture of low sulphur, low phosphorous foundry grade pig iron. The project never saw the light of day. IDBI has moved to DRT for itsrecovery.There's one striking similarity among the Gambhir brothers - they all are almost impossible to track down and since long have stopped sending any information to the Steel Ministry on the status of their projects.The Indian Express traced the office of Nova Steels and Nova Iron and Steel, companies promoted by R.K. Gambhir, at 506, Hemkunt Towers, Nehru Place. But attempts to speak to R.K. Gambhir were futile as his office always said that he was not in. When this correspondent visited the office, he met an official called Inderpal who claimed to be the company's HR Mananger, and promised all cooperation and an interview with Gambhir the next day itself. Inderpal said that the company had witnessed downturn in its businesses due to faulty policies of the Government and slowdown in the steel sector.Beginning the next day, Inderpal himself was untraceable. And the residence number he gave as his own, turned out to be the Embassy of Poland's number!In the absence of cooperationfrom the promoters, The Indian Express had to depend for most of the information from the Steel Ministry. According to Steel Ministry officials, currently there are no supplies to any units from any of the Nova companies. Letters sent by the Ministry to the companies offices always return undelivered. The Ministry has had no communication with the promoters of these companies.Apparently, the brothers themselves were aware of the fact that their market reputation wasn't the best, and this could pose problems for them. Which is why, for example, when he went to the market to raise money, T.N. Gambhir tried his best to separate himself from his brothers. Nova Dhatu Udyog's prospectus has this to say: ``In July 1989, there was an amicable settlement between the four brothers. In the year 1990 he set up Nova Dhatu Udyog Ltd. Mr T.N. Gambhir is not associated with any company which has raised money from the market.''Since IDBI lent term loans to most of these companies for their projects, The IndianExpress sent a faxed questionnaire to its Mumbai office. However, till the time of writing, it did not receive any reply. On calling up its office in Mumbai, S.G. Gulati, Chief General Manager, Corporate Finance Department, said that he does not handle the Nova case so he would not be give any information. After further enquiries, however, Gulati said that as far as he remembered, none of the projects had really worked out, and that IDBI had approached the Debt Recovery Tribunal for recovering its money.The Indian Express then contacted SBI Capital Markets, which was the lead manager to some of the issues. SBI Caps' reply was similar to those of other lead managers the newspaper contacted. They were just lead managers, and had no updates on the project - their responsibility ended the minute all the public issue amount was collected. As for file information, they don't have to share it with anyone.
