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Last opportunity to Coromandal Cements

Our Bureau

NEW DELHI, Aug. 10

THE Board for Industrial and Financial Reconstruction (BIFR) has decided to give a last opportunity to the promoters of Coromandal Cements Ltd (CCL) for rehabilitating the company.

The Bench declared the scheme sanctioned in 1996 and modified in 1999 as failed and appointed IDBI as the operating agency under Section 17(3) of SICA. A month's time (till August 18) has been given to the company for submitting a revised proposal based on one-time settlement (OTS) of dues, the bench said.

Income-Tax Authorities had stated that the Central Board of Direct Taxes had earlier not acceded to the exemption requests from time limit, this aspect should be taken into account while formulating the revised rehabilitation scheme, the Bench said. IDBI will examine the proposal, hold a joint meeting and submit its comments to the bench within one month thereof, the bench said.

CCL has been asked to submit full details regarding the foreign transaction indicating that it will be properly routed through banking channels and ensuring compliance of relevant rules and regulations. The Bench also directed the company to submit all d ocuments, including duly signed agreements entered into by them with the principal agent and/ or Heritage Trust, Australia, giving full details of the terms and conditions applicable to the loan transaction.

A copy of the trust deed of Heritage Trust must also be submitted after getting it duly notarised, the Bench said. All the financial institutions (FIs) and banks will individually satisfy themselves regarding this transaction and give their views in writ ing both to BIFR and OA. IDBI, the operating agency has been asked to confirm the transaction with the sick company will be in accordance with the relevant RBI rules.

In case the scheme is found acceptable, a draft rehabilitation scheme (DRS) will be circulated after due consideration. Otherwise, the bench will consider issuing a show-cause notice (SCN) for winding up of the company, the Board said.