Nagpur: A consortium of banks led by Bank of Baroda have attached the assets of Murli Industries limited belonging to the city-based Maloo Group.
The Maloo Group has interests in paper, cement, chemicals and also solvent extraction. Sources in the banks said that the group is learnt to have defaulted on total loans worth 1,400 crore to about four banks. Following the attachment of the properties, the consortium of banks also have served notice on Maloo Group about the action they have taken, sources said. Sources also disclosed that the consortium has taken this action under The SARFESI Act and with the attachment the consortium gets physical possession of the properties.
In case of failure of loan recovery proceedings, the consortium can now dispose of this properties as it deems fit and recover the loan due from Murli Industries and other companies. Market sources said that Maloo Group had attempted to prevent the attachment, by filing a petition in the Mumbai High Court, seeking stay on attachment under the Relief Undertakings (Special Provisions ) Act of Maharashtra. The company was protected against any action from banks under this law till February 2015. Subsequently, the high court disposed of the petition last week and after that bank consortium promptly attached the properties without losing any time, sources said.
Industries is the flagship company of the group followed by Murli Paper, Murli Agro and two other companies. The group also had tried to sell off some of its companies to repay the loans. However the move was not fruitful, sources said.