ET: Central Bank puts Rs 3,300 cr NPA on auction

2 March 2019: Taking a cue from the SBI, the Central Bank of India on Saturday put four big accounts of NPA worth Rs 3,300 crore on sale through the SARFAESI Act, though some of the assets are currently under the NCLT resolution process.

The accounts are Bombay Rayon Fashions Ltd, Alok Industries (Rs 1,251 crore), Bhushan Power & Steel (Rs 1,550.07 crore) and Essar Steel (Rs 423 crore).

Except Bombay Rayon, Alok Industries, Bhushan Steel & Power and Essar Steel are currently under NCLT process.

Frustrated over the inordinate delay in the ongoing insolvency proceedings, the State Bank of India (SBI) had put its Rs 15,431-crore exposure to the stressed assets of Essar Steel on the block. After not getting the desired response, it had to defer the date of final bidding.

“In terms of the bank’s policy on sale of financial assets in line with the regulatory guidelines, we place these accounts for sale to Banks/ARCs/NBFCs/ FIs on the terms and conditions. However, the sale will be subject to final approval by the Competent Authority of the Bank,” the Central Bank said in its notice.

The final bidding date of these assets is March 20.

These properties are on sale through the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI), 2002, on without recourse basis based on an existing offer of firm bid from an investor, who will have the right to match the highest bid, it added.

The Economic Times reported




Categories: General News, India Bankruptcy

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