New Delhi, Jan 19: The Board for Industrial and Financial Reconstruction (BIFR) has refused to grant permission to Manu Chhabria-controlled Dunlop India Ltd to dispose of its fixed assets. Hearing a plea by Dunlop, a BIFR bench comprising chairman PP Chauhan and member G Narayanan on on Tuesday, refused to grant permission to the company to dispose of its fixed assets.As regards the sale of current assets, for which the company has obtained permission from the Supreme Court, the bench ordered formation of a committee, consisting of a company representative, IDBI, the operating agency and United Bank of India, the lead banker, for carrying out the sale. The committee will prepare a list of all the current assets of Dunlop, invite bids for the sale through advertisements in leading newspapers and conduct the sale thereon.
Board will take a decision on the rehabilitation proposal of the company after receiving detailed technical viability report by IDBI, the bench said.IDBI will submit its report to the bench in four weeks time, the bench directed. The technical viability of Dunlop is being carried out by Tata Consultancy Services appointed by IDBI.
The rehabilitation proposal of Dunlop India costing Rs 180 crore has been opposed by all banks except federal bank. The management has also not reached an agreement with unions regarding the proposal.
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