Court pulls up Canara Bank in GTL infra case
Chennai Network Infrastructure (CNIL), which merged with GTL, had a debt of Rs 13,318 crore, which stood at Rs 10,000 crore in April 2017 and later reduced to Rs 4,841 crore.
Published: 04th September 2018 03:14 AM | Last Updated: 04th September 2018 03:14 AM | A+A A-
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CHENNAI:GTL Infrastructure, a city-based telecom tower company, has moved the HC questioning action taken by banks under the Insolvency and Bankruptcy Code. The company owes over Rs 4,000 crore as loans to the consortium of banks led by Union Bank of India (UBI).
Chennai Network Infrastructure (CNIL), which merged with GTL, had a debt of Rs 13,318 crore, which stood at Rs 10,000 crore in April 2017 and later reduced to Rs 4,841 crore.Petitioner said Edelweiss Asset Reconstruction Company (EARC) offered bid of Rs 2,000 crore against outstanding dues to all lenders, including Canara Bank. EARC increased its bid to Rs 2,400 crore and lenders agreed to the offer.
Apprehending that banks are proposing to seek resolution for the company by referring it to National Company Law Tribunal (NCLT), the company has approached HC.
When the plea came up for hearing on Monday, its senior counsel alleged that Canara Bank had issued the letter with malicious agenda and wanted the court to pass interim order restraining the bank from approaching NCLT.
Refusing to grant any interim relief, Justice R Mahadevan asked what is the security the company has for the debt.
To this the counsel said the company owns 28,000 mobile phone towers across India.“That cannot be said as a security for Rs 10,000 crore debt,” the judge said, directing Canara Bank and the UBI to file their counter by September 10.
