Sheth gone, world of Raj Travels sinks Phone lines snapped, bookings discontinued even as creditors queue up for recovery

Sheth gone, world of Raj Travels sinks

Phone lines snapped, bookings discontinued even as creditors queue up for recovery

Nearly a month after Lalit Sheth of Raj Tours committed suicide by jumping off the Bandra-Worli Sea Link on August 1, the travel business that he left behind is sinking. All the telephone lines have been disconnected, all new bookings have been discontinued and customers who paid up but never fulfilled their travel plans are awaiting their refund. Not only that, funds to make payments are hard to come by–be it to customers or creditors. While the family put up a brave front after Sheth’s death, that debts were not the reason for him to give up his life, going by the mess the Raj Travels is in, the situation seems insurmountable. The company, which registered a turnover of Rs300 crore until a few years ago, finds that all revenue streams have dried up and creditors are queuing up to recover their money. “We have been told by the management to discontinue all fresh bookings till further notice,” said an employee of the Raj Tours, adding that while things were going downhill even when Sheth was alive, business has come to a standstill ever since he passed away. “We are not even getting our salaries on time, and those who are finding a job elsewhere are leaving and going,” the employee said. It’s not just the head-office at Chowpaty that wears a deserted look, but times are bleak even at the company’s suburban offices in Andheri, Kandivli and Vashi. “We are hoping for a revival,” said an attendant at the Vashi franchisee. But the road to revival is a long one for Sheth’s successors. “Right from the loans due to the institutional and private lenders, to the payments due to the trade and customers, it can all be too much for anyone to pay when there is no revenue and no scope for bouncing back,” said a leading Fort-based travel operator, adding that another big blow is round the corner for Raj Tours when IATA’s payment schedule switches to weekly mode from October. “Why only Raj, many other travel companies that are riding on the line of credit will go under once the new IATA rule comes into effect,” the operator said. Though the quantum of outstanding is not clear, the amount runs into tens of crores and it is likely that the institutional lenders will seek the legal course to recover their money. “In case the loan has been given to the company, the creditors can approach the high court to appoint an official liquidator, who will take over the company’s operations,” said advocate Aditya Chitale, adding that in case the loan has been given to a partnership or a proprietorship, then the personal assets of the borrower can be liquidated to repay the loans. “Even if the borrower has pledged his personal property as guarantee for the company loan, the property can be liquidated,” said Chitale. Though Sheth’s office is on rented premises, he has a sprawling flat at chowpatty with a market value upwards of Rs20 crore.