Mumbai : State Bank of India (SBI) may refer overseas oil and gas subsidiary of Videocon Group for insolvency proceedings at National Company Law Tribunal (NCLT), and is seeking a legal view before filing the petition, according to sources close to the development.
SBI leads the consortium of lenders to VOVL, erstwhile Videocon Oil Ventures. This move comes after bankers did not get a reply on their plea to the Reserve Bank of India for special dispensation on restructuring debt of VOVL.
The company is among the accounts where banks had to implement a resolution plan by August 27 as per the Feb 12 circular of the RBI.
“The RBI has not replied to the dispensation request and hence that will be read as no relaxation and we will have to move NCLT. But now with the Supreme Court order, the lead bank is seeking legal advice on the NCLT referral,” said an official with a Mumbai-based state-owned bank.
On Feb 12, RBI withdrew a host of restructuring schemes and set a 180-day timeline for banks to implement a resolution plan. Failing to do so, the account will have to be referred to NCLT for proceedings under Insolvency & Bankruptcy Code.
Omaxe promoter moves NCLT against CMD
New Delhi: Sunil Goel, second largest promoter of Omaxe Group, has filed a legal petition against elder brother and Omaxe CMD Rohtas Goel alleging mal-practices and financial mismanagement at the real estate company. “On September 17, Sunil Goel and his group filed oppression and mismanagement petition before NCLT Chandigarh in respect of Omaxe,” a statement issued on behalf of Sunil Goel said.
Sunil Goel was ousted from the company in 2017 when he acted as a whistle-blower raising objections about the financial fraud, it said. Omaxe Group was founded by the Goel brothers in 1987 and has footprints in eight states and 27 cities.
Chairman and Managing Director Rohtas Goel is the largest promoter and shareholder group of the company and Sunil Goel is the second-largest promoter with 20 per cent shareholding in the company, the statement said.
Shareholding of the promoter and promoter group is through Guild Builders Private Limited, which holds around 65-70 per cent shares of Omaxe and is a holding company of Omaxe.
The younger brother has sought reinstatement as Director, status quo on assets and an injunction that shares of Omaxe held by Guild Builders Private Ltd should not be pledged for taking further loans by Omaxe Limited. “The current financial scenario of the Group is not stable, and the profitability dipped despite taking extra loans from various banks and financial service providers,” it said. In the last one year, Omaxe Group has increased its loan exposure from Rs 1,300 crore to Rs 1,800 crore. Sunil Goel has even written letters to various financial institutions and major shareholders of the company informing them about the financial mismanagement.