BLS Polymers pursues ₹189.22 lakh Gupta Power recovery claim

BLS Polymers has initiated criminal recovery proceedings against nine customer counterparties through cheque-dishonour complaints and first information reports. The largest disclosed matter is BLS Polymers’ alleged ₹189.22 lakh unpaid principal claim against Gupta Power Infrastructure Limited for polymer compounds supplied on 180-day credit terms.

What is behind BLS Polymers’ customer recovery cases?

BLS Polymers’ recovery cases concern alleged non-payment for goods, dishonoured cheques and unreturned material sent for processing. Seven customer counterparties face cheque-related complaints under the Negotiable Instruments Act, 1881, while Gupta Power Infrastructure Limited and Shana Traders are subjects of first information reports, or FIRs, involving allegations related to payment defaults or entrusted material.

The disclosure is made under a Materiality Policy adopted by the BLS Polymers board on July 14, 2026. The policy sets a ₹92.78 lakh Materiality Threshold for the company’s pending litigation, calculated as the lowest of four financial measures, including 5% of the average absolute profit or loss after tax over the preceding three financial years.

The nine matters are proceedings initiated by BLS Polymers rather than criminal cases against the company. As of the red herring prospectus date, BLS Polymers reported no criminal litigation, regulatory or statutory action, or other material litigation against itself, distinguishing its collection actions from claims against its operations.

Why is the BLS Polymers Gupta Power recovery claim the largest?

The BLS Polymers Gupta Power recovery claim is the largest disclosed customer matter because the company alleges ₹189.22 lakh of outstanding principal. An FIR was registered at Kaushambi police station in Ghaziabad, Uttar Pradesh, under Sections 504, 506 and 120B of the Indian Penal Code, 1860, and the police had commenced an investigation as of the prospectus date.

BLS Polymers alleges it supplied polyvinyl chloride, polyethylene and cross-linked polyethylene compounds, respectively called PVC, PE and XLPE compounds, to Gupta Power Infrastructure Limited against purchase orders. The company said the goods were supplied on 180-day credit terms through letters of credit, or LCs, but alleged that the customer did not provide the requisite LCs and defaulted on invoice payments after receiving and using the goods.

BLS Polymers said it had stopped supplies because of payment delays before resuming them when Gupta Power Infrastructure Limited agreed to revised payment terms. The company also alleged an additional goods and services tax, or GST, liability arising from alleged non-compliance with GST provisions, but did not quantify that amount; the ₹189.22 lakh figure is stated as principal only.

How do the cheque cases compare with the Gupta Power claim?

The seven cheque-dishonour counterparties involve disclosed cheque amounts from ₹3.67 lakh to ₹21.98 lakh, compared with the ₹189.22 lakh alleged principal in the Gupta Power Infrastructure Limited matter. BLS Polymers filed 13 complaint cases across these seven counterparties before courts at Patiala House in New Delhi under Sections 138, 141 or 142 of the Negotiable Instruments Act, 1881.

The disclosed cheque value does not always equal the amount remaining to be recovered. NEC Wire and Cables Private Limited paid ₹19.91 lakh after the complaint was filed, while Kapil Cables Limited made ₹11.00 lakh in part payments against a ₹21.98 lakh cheque, leaving ₹10.98 lakh outstanding according to BLS Polymers.

The Vandana Industries Limited matter shows a separate procedural outcome. The Additional Chief Metropolitan Magistrate acquitted the accused on November 17, 2025 in relation to two cheques amounting to ₹11.12 lakh, and BLS Polymers subsequently appealed under Section 415 of the Bharatiya Nagri Sakri, Puranab, 2023; the hearing was listed for November 4, 2026.

What collection mechanisms is BLS Polymers using?

BLS Polymers is using court complaints after cheque dishonour and police complaints where it alleges fraud, breach of trust or related conduct. In the seven cheque matters, BLS Polymers sought prosecution, reimbursement or compensation under the Negotiable Instruments Act, 1881, following return reasons including insufficient funds, payment stopped by drawer, account closed and “refer to drawer.”

The cheque cases have reached different stages as of the prospectus date. The Judicial Magistrate First Class issued non-bailable warrants on April 1, 2026 in all three Parmeshwar Enterprises cases involving ₹8.03 lakh of cheques, while process was issued on April 30, 2026 against Saffron Cable Industries Private Limited in relation to a ₹11.48 lakh cheque returned with the remark “account closed.”

The FIR involving Shana Traders uses a different mechanism because it concerns material allegedly entrusted for grinding and processing, not a dishonoured cheque. BLS Polymers alleged that it delivered about 22,880 kilograms of high-density polyethylene, or HDPE, lumps and PE wax between February 12, 2024 and March 14, 2024, but received only 11,191 kilograms back.

BLS Polymers alleged that about 10,969 kilograms remained unreturned, resulting in a loss of about ₹8.95 lakh. The company also alleged it paid ₹1.55 lakh in grinding charges before the counterparty became unresponsive; the FIR was registered on August 13, 2026 at Verna Police Station in South Goa under Section 406 of the Indian Penal Code, 1860, and remained under investigation.

What operational risk do these recovery proceedings disclose?

The proceedings disclose credit-collection risk because BLS Polymers supplied goods or entered processing arrangements before alleging payment or material-recovery failures. The Gupta Power Infrastructure Limited matter specifically involved 180-day credit terms and purported LC requirements, while the Kapil Cables Limited case shows that ₹10.98 lakh remained outstanding after ₹11.00 lakh of payments against a ₹21.98 lakh cheque.

The ₹189.22 lakh Gupta Power Infrastructure Limited principal allegation is more than twice BLS Polymers’ ₹92.78 lakh Materiality Threshold. Every individual disclosed cheque amount is below ₹21.98 lakh, making the Gupta Power Infrastructure Limited allegation the principal disclosed concentration within these nine customer recovery matters.

Recovery timing may extend substantially beyond the original trading transaction. Disclosed hearing dates range from November 4, 2026 in the Vandana Industries Limited appeal to April 18, 2027 in one Shiv Priya Cables Private Limited matter, while the Gupta Power Infrastructure Limited and Shana Traders FIRs were still under police investigation.

A pending complaint, warrant or FIR does not establish liability or ensure recovery. Full recovery of the amounts alleged by BLS Polymers depends on investigation progress, court decisions, settlements or payments, and, in the Shana Traders matter, whether the company can recover the approximately 10,969 kilograms of material or its stated ₹8.95 lakh loss.

Conclusion

BLS Polymers’ disclosures show that its customer collection activity includes both cheque-dishonour prosecution and FIR-based complaints. The ₹189.22 lakh alleged principal in the Gupta Power Infrastructure Limited matter is the largest disclosed amount, while the cheque cases show differing results, including full payment by NEC Wire and Cables Private Limited, partial payment by Kapil Cables Limited and an appeal after the Vandana Industries Limited acquittal.

The next disclosed milestones are hearings scheduled from November 2026 through April 2027 and the ongoing police investigations involving Gupta Power Infrastructure Limited and Shana Traders. The matters to watch are whether BLS Polymers recovers the alleged ₹189.22 lakh Gupta Power Infrastructure Limited principal, the stated ₹10.98 lakh Kapil Cables Limited balance and the approximately ₹8.95 lakh Shana Traders loss through the disclosed proceedings.