ICICI Bank wants its Rs 608 cr from Gitanjali Gems, takes action now
ICICI Bank has finally dragged scam-ridden Gitanjali Gems to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC). DNA Money had on September 11 reported that ICICI Bank was taking initial steps of sounding out prospective resolution professionals for the likely move to NCLT.
ICICI Bank has finally dragged scam-ridden Gitanjali Gems to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC). DNA Money had on September 11 reported that ICICI Bank was taking initial steps of sounding out prospective resolution professionals for the likely move to NCLT.
The Mumbai bench of NCLT on Wednesday heard the case filed by Gitanjali’s banker, who argued that the company is a case “fit and proper to be referred to Corporate Insolvency Resolution Professional”.
ICICI Bank said Rs 608 crore was due from the company out of Rs 5,980 crore due to a consortium of 33 banks, including Punjab National Bank, Allahabad Bank, Bank of Baroda, Central Bank of India.
Name of Vijay Garg was suggested as the resolution professional.
ICICI Bank had in September floated Expression of Interest for prospective resolution professionals experienced in handling resolution of scam-tainted companies, DNA Money had reported. The move assumed significance because of the nature and scale of alleged frauds committed by the company management, which has led to involvement of Serious Fraud Investigation Office.
SFIO is expected to work in close coordination with the resolution professional following a recent landmark judgement of NCLT.
In the bankruptcy case of another disgraced company Rei Agro, the Kolkata-bench of NCLT directed the freeing of assets of the company from the Enforcement Directorate to be distributed among creditors, who collectively owns Rs 10,800 crore.
ICICI Bank was earlier depending on the Debt Recovery Tribunal or selling mortgaged assets through Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest, or Sarfaesi, Act to recover its money, and lenders had earlier ordered a forensic audit of the books of Gitanjali Gems which has now been completed.
Source: DNA Money
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
09:56 AM IST