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Mysore Lamp wind-up confirmed by BIFR

Our Bureau

NEW DELHI, Aug. 10

THE Board for Industrial and Financial Reconstruction (BIFR) has confirmed its prima facie opinion of winding up Mysore Lamp Works Ltd (MLWL) under Section 20(1) of the Sick Industrial Companies (Special Provisions) Act (SICA).

At the recent hearing, the Bench came to the conclusion that the promoters of MLWL were not serious in rehabilitating the company, nor are they willing to commit the funds required for rehabilitation of the company.

``As such, there is no rehabilitation proposal with means of finance fully tied-up for consideration of the board despite ample opportunities given to all concerned,'' the Bench said.

Under the circumstances, the Bench confirmed its opinion that the sick company was not likely to make its networth exceed the accumulated losses within a reasonable time while meeting all its financial obligations, and as a result, was not likely to beco me viable in future.

The Bench observed that the Government of Karnataka since it parked the company with the BIFR in 1996 had not made any worthwhile effort to revive the company. ``The draft rehabilitation scheme (DRS) prepared by the OA was also scuttled by the State Gove rnment on the plea of so-called privatisation,'' the Bench noted, adding that ``the privatisation efforts have also not yielded any useful result.''

Further, the Bench also noted that the Karnataka Government had also not complied with the board's order issued from time to time as was evident from the sequence of events.

``We, therefore, see no justification to give further time to the Karnataka Government as sought by it. We have no alternative but to confirm the winding up of the company,'' the Bench said.