Raphe mPhibr Pvt. Ltd., with Mr. Vikas Mishra and Nitin Katyar as its Directors, a Noida-based UAV manufacturing company has been served notice by Debts Recovery Tribunal, Delhi.
This Company is now facing debt recovery proceedings for failure to repay a loan availed from Canara Bank. As per sources, Raphe had sought working capital for its business of carbon fiber composite and drone manufacturing. Canara Bank sanctioned a loan, initially for Rupees One Crore and subsequently enhanced by Rupees Fifty Lakh as well as a term loan for Rupees Ninety-Seven Thousand Five Hundred.
This loan facility was recalled when Raphe failed to repay the EMI. Seeing the dire situation of Raphe wherein they could not even pay the EMI, Canara Bank was faced with no other option but to initiate proceedings before the Debts Recovery Tribunal, New Delhi. The DRT issued notice to Raphe on 14th October 2020 with Raphe now set to be engaged in drawn-out litigation which can only do more harm than good. The next hearing before DRT, Delhi in this matter is on 09.11.2022 where the Hon’ble Tribunal has directed Raphe mPhibr to file its response to the charges.
This is a severe blow to Raphe, who as per sources is already under scrutiny by authorities including the judicial as several litigations have now surfaced, including criminal proceedings. The company is in the habit of defaulting on its obligations. Sources say that creditors of Raphe are fearing non-payment of their debt as Raphe is frequently faced with allegations of cheating, fraud, and non-payment of debts. Creditors also fear that regulatory and statutory compliances are repeatedly not met by Raphe leaving them further exposed to any action that authorities might take.
It can be inferred from this case, Raphe is heavily in debt. Its repeated failure to repay these loans leaves a huge question mark on the creditworthiness of the company going forward as the number of debts defaulted on is only increasing. With Canara Bank gradually seizing control over the Company, it is only a matter of time before other creditors choose the route of litigation in order to recover their debts and secure their interest.
These developments bring into doubt its solvency and hence its ability to duly execute its obligations to its partners. Raphe’s inability to honor its obligations – with Canara Bank, for instance – certainly points toward future defaults as well as they seem to be running out of the working capital required to carry out contractual obligations.
As per warranted sources, this Drone Company had faced serious issues with DRDO & CRPF where Drones supplied by them were found not up to the mark. This company has availed Crores of Rupees in grants from the Government for making drones and it is blatantly refusing to return the loan amount they have taken from a Public Sector bank which has provided Public Money to its Promoter, Mr. Vikas Mishra, under CGTSME scheme to start its operations. This tendency to usurp public money may also make out a case of willful default against Raphe mPhibr and its promoters Mr. Vikas & Vivek Mishra.
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