Mumbai, June 30: The Ispat group's four cheques totalling Rs 22.65 crore issued to the Maharashtra State Electricity Board (MSEB) this week has bounced, it is reliably learnt. These cheques, which were issued to MSEB's Pen circle, have been sent to its headquarters at Bandra, Mumbai.With this, MSEB, which is already reeling under severe financial crisis, has received a major setback. MSEB sources told The Financial Express that it has asked the cash-strapped Ispat Group to make the payment immediately or face disconnection. Ispat Group will have to make a payment of at least Rs 5 crore immediately to avoid disconnection.It must be mentioned here that Ispat Group's arrears towards MSEB have already crosssed Rs 140 crore. Sources said that MSEB may explore the possibility of filing a case under various sections of the Criminal Procedure Code or the Indian Penal Code against the group. "It is highly objectionble that despite mounting arrears, the Ispat Group continues to dishonour its cheques," sources added.
However, a decision in this regard is not expected soon as Maharashtra state chief minister Vilasrao Deshmukh, energy minister Padmasinh Patil and MSEB chairman Yashwant Bhave are currently travelling abroad. MSEB supplies power to the Ispat Group's Dolvi plant in Maharashtra's Raigad district. During the rule of the previous Shiv Sena-BJP government, MSEB had disconnected power supply following the group's failure to make the monthly payment.
However, the power was restored after it made a payment of Rs 1 crore as against arrears of Rs 80 crore. Ispat Group, which will set up a 1,082 mw thermal power plant at Bhadravati in Vidarbha region in the state, has already sought an excrow cover from MSEB which will have to shell out more than Rs 2,400 crore annually on account of this.
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