Industrial development fund, Finance company

New Delhi, June 28 The Chennai bench of the National Company Law Tribunal (NCLT) has grilled IDBI Bank again over one-time settlement (OTS) deal reached between the IDBI Bank-led bank consortium and Siva Industries and Holdings Ltd (SIHL), Zee Biz reported.The bench last week questioned the alacrity being shown by the lead lender IDBI Bank as CBI has charged C Sivsasankaran in a loan fraud case of IDBI Bank.The bench also asked the bank consortium in what capacity did the proposer give the settlement plan and the "real intent" behind the one-time settlement offer.The tribunal also sought explanation if the proposal could be admitted under the law.Some serious allegations and questions have been raised with respect to the Siva Industries and Holdings case that has grabbed the limelight because public sector banks have agreed to settle with the promoter of Siva Industries a huge loan of Rs 4,863 crore at just Rs 323 crore with a recovery of only 6.5 per cent, Zee Biz reported earlier.As per the report, interestingly the CoC member and biggest bank of the country SBI dissented against the settlement proposal.Moreover, the case becomes even more important when the lenders are withdrawing the bankruptcy process of Siva Industries and Holdings.Further, the important to note here is the settlement amount accepted by banks is said to be even lower than the liquidation value of Siva Industries and Holdings and it will result in a loss of approximately Rs 4,700 crore public money, the report added.Additionally, the public sector bank Canara Bank privately sold its exposure of Rs. 1,148 crore to an ARC – International Asset Reconstruction Company Private Limited (IARC).It is feared that this case will set a bad precedent and defeat the purpose of the Insolvency and Bankruptcy Code, 2016. As if things are to be settled outside court with such a meager sum, then IBC may lose its relevance.Interestingly IDBI Bank as the lead banker is settling the case with the same promoter who was earlier charged by CBI for defrauding the same lender to the tune of Rs 600 crore along with the other then posted senior officials of the bank, the report said.Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Industrial Development FundFOLLOW

Industrial development fund, Latest News

New Delhi, June 20 IDBI Bank has invited bids through e-auction of property of Great Indian Tamasha Company, ... ...

IDBI Bank on Monday said its net profit for the fourth quarter of the financial year 2021-22 rose to Rs 691 crore from Rs 512 crore in the corresponding quarter of the previous year, posting year-on-year growth of 35 per cent. ...

Aurangabad, Feb 28: An accountant of a private company withdrew money from IDBI Bank in Bajajnagar on Monday afternoon. ... ...

Chennai, Feb 21 It is beyond comprehension that Chitra Ramakrisha, was led by a 'Marma' Yogi or mysterious ... ...

New Delhi, Oct 21 IDBI Bank on Thursday reported a rise of 75 per cent in its net ... ...

Aurangabad, Oct 12: The local Crime Branch (LCB) team arrested three persons for allegedly robbing an agent of a ... ...

New Delhi, July 28 Lender IDBI Bank on Tuesday reported an exponential rise of 318 per cent in ... ...

New Delhi, June 28 The Chennai bench of the National Company Law Tribunal (NCLT) has grilled IDBI Bank ... ...