Ind Bank gets nods for legal proceedings against Kedia

Ind Bank gets nods for legal proceedings against Kedia

New Delhi, Apr 20: The Board for Industrial and Financial Reconstruction (BIFR) has given its go ahead to Indus Ind Bank to initiate legal proceedings against Kedia group company, Kedia Castle Delleon Industries for recovery of its dues.

Indus Ind, would however have to seek Board's consent for execution of the decree obtained from Court, the Bench which was acting on an application by the Bank said.

The Bench noted that SBI Capital Markets, 20th Century Kinetic Finance and Alpic Finance had already filed suits in Bombay High Court which had ordered ad hoc monthly royalty payments.

The Board directed Industrial Development Board of India (IDBI) to include all the dues in the rehabilitation package and directed the promoters of the Kedia Castle to submit a revised proposal as per Reserve Bank of India guidelines.

IDBI would examine the company's proposal, formulate a comprehensive rehabilitation scheme, hold a joint meeting of creditors and submit its report to the Board.

The Board also asked the company to submit a comprehensive list of all its inter-company sundry creditors and the debtors within the group certified by statutory auditors. The company would also submit the audited balance sheets of all the group companies for the last five years to State Bank of India.

The Board also directed all the banks, institutions and leasing companies to furnish details of their dues to the operating agency. The BIFR bench observed that it was imperative for the promoters of Kedia Castle to show greater seriousness in the management and the revival of the company.

Earlier, a revival proposal submitted by the promoters was not found acceptable by the Board as the reliefs and concessions envisaged by the company were much beyond RBI parameters. Kedia Castle was declared sick by BIFR in 1998.