Nagpur: Unable to get their loans repaid by the borrower companies despite repeated notices, the creditor-banks are intending to start recovery process against the major borrower-company, namely, Corporate Ispat Alloys Limited (CIAL) which is an Abhijeet Group Company, by filing a recovery suit in the court of law. Their efforts with Assets Reconstruction Company of India Limited (ARCIL) to have failed.
The defaulter company (CIAL) has its five divisions–Ferro Alloys, Sponge Iron, Solar and Biomass. Each division has borrowed loans from different banks, must be with the consent of CIAL. Now these different banks under the umbrella of State Bank of India, joined together have started initiating recovery process for outstanding over due loan of Rs 242 crore. The Ferro Alloys division is said to be located at Durgapur in West Begal state and other divisions elsewhere. This being the situation all sister divisions are in a fragmented locations, and recovery process may face difficulty, said the sources.
The SBI leading the group of other creditor-banks has given loan worth Rs 242 crore to CIAL. The CIAL is finding difficulty in fixing accountability on its sister concerns. The ARCIL is a company which takes over loans of banks at a discount rate. It then makes on-the-face payment of 15% and the remaining amount is paid as and when it recovers from the borrowers. But, nothing has yet been finalized.
The total outstanding loan against Abhijeet Grup from different banks is about Rs 12,000 crore. The IDBI bank had offered to Abhijeet Group to sell its private jet aeroplane but the auction failed, said the sources. The bank had given loan to Abhijeet Group to a commercial aircraft Bombardier. The said jet aeroplane is now lying grounded at Nagpur airport, as reported.
In order to recover the loans, the SBI tried to find a third party investor fro CIAL and talks with Uttam Galva, who owns a plant in Wardha, but the talks could not get materialized. Since recovery of such a huge amount of loans would take a very long time, even through recovery suit, the recovery pannel would face a tough task ahead.