20 February 2019: A division bench of Telangana High Court on Tuesday questioned Anrak Aluminium Limited as to how it would operate in the event of cancellation of agreement by the government for supply of raw material and no scope to get raw material from Odisha state.
The bench was dealing with an appeal by RBI against the order of a single judge who directed SBI to withdraw the petition filed under the Insolvency and Bankruptcy Code. Anrak had established an aluminium refinery unit with an investment of Rs 6,000 crore in Andhra Pradesh. However, it has failed to commence its operations and faced pressure from banks for repayment of loans.
A consortium of banks agreed to a one-time settlement proposal. In the meantime, SBI moved the tribunal. Aggrieved with the same, Anrak moved the HC.