The Hindu : ICICI Bank takes over Mardia Chem.'s Vatwa unit

Online edition of India's National Newspaper
Friday, Nov 29, 2002

Business

Business

ICICI Bank takes over Mardia Chem.'s Vatwa unit

MUMBAI NOV. 28. Two days after Parliament passed the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Bill 2002, ICICI Bank has taken over a unit of Mardia Chemicals, located at Vatwa in Ahmedabad.

The company owed Rs. 1,450 crores (including principal of Rs. 800 crores and balance unpaid interest) to 22 lenders, including Bank of Baroda, Bank of India, Corporation Bank, Union Bank, IDBI, Life Insurance Corporation, IFCI and New India Assurance, an ICICI Bank official said here today.

The leading private sector bank had issued a notice in July to Mardia and on expiry of the required 60 day period, it decided to take over the assets of the closed unit in consultation with all lenders, he said, adding Mardia had not been paying their dues for the last four to five years.

The bank officials, accompanied by the assistant superintendent of the Magistrate's Court, technical experts and the police, took possession of the unit yesterday. He said by taking measures under Sec.13(4) of the ordinance the BIFR proceedings now stand "abated.''

Mardia had earlier approached the Supreme Court. The Supreme Court in its interim order said that lenders could take possession of the assets but not sell that under the ordinance, thereby creating a third party liability. The hearing in this case is slated to commence tomorrow. — PTI

Printer friendly page
Send this article to Friends by E-Mail

Business