Bank Of Maharashtra To Auction Assets Of Videocon Group’s Unity Appliances
State-owned Bank of Maharashtra has put on sale movable and immovable properties of Unity Appliances, a unit of debt-ridden Videocon Group. The move is for the recovery of a loan worth Rs 153.77 crore.
The outstanding dues of the Unity Appliances Ltd. are over Rs 153.77 crore, plus interest, from Jan. 5, 2018. The company situated at SIPCOT Industrial Complex Sivagangai, Tamil Nadu, manufactures air conditioners and LED and LCD television sets.
Videocon Industries and its promoter Venugopal Dhoot and PN Dhoot are guarantors to Unity Appliances, as per the public notice put out by the bank.
The electronic auction for land and machinery is slated for March 30, 2019, with a reserve price of Rs 42.34 crore for land and Rs 72.82 crore for plant and machinery.
This is the second time the bank has issued e-auction notice for Unity Appliance. Earlier, a notice was issued under Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 in January last year.
The Videocon group is among 28 large defaulters identified by the Reserve Bank of India in the second list for undertaking insolvency and bankruptcy process.
In June 2017, RBI’s internal advisory committee identified 12 accounts, each having more than Rs 5,000 crore of outstanding loans and accounting for 25 percent of total bad loans of banks.
Following the RBI advisory, banks referred Bhushan Steel Ltd., Bhushan Power & Steel Ltd., Essar Steel Ltd., Jaypee Infratech Ltd., Lanco Infratech Ltd., Monnet Ispat & Energy Ltd., Jyoti Structures Ltd., Electrosteel Steels Ltd., Amtek Auto Ltd., Era Infra Engineering Ltd., Alok Industries Ltd. and ABG Shipyard Ltd. to the National Company Law Tribunal. These accounts together have a total outstanding loan of Rs 1.75 lakh crore.