BPL Group comes under Company Affairs scanner

The Department of Company Affairs (DCA) has launched a preliminary enquiry into the affairs of the BPL group following several complaints fr...

The Department of Company Affairs (DCA) has launched a preliminary enquiry into the affairs of the BPL group following several complaints from shareholders in the wake of the family controversy over the ownership of BPL Mobile.

At the root of DCA’s investigation is BPL’s total debt of Rs 1,492 crore, of which Rs 680 crore have been to its own group companies. Among the issues that are being examined include details of advances given by BPL Ltd to various companies owned/controlled by the Nambiar family and the amounts due to BPL Ltd from these companies. Also under scanner is write-offs of dues owed to BPL Ltd from international companies owned by the family.

BPL’s investment of Rs 50 crore in Kleer Industries and a waiver of Rs 50 crore from the same company on the export receivables account are also being scrutinised. Write-offs of investments in BPL Eurotrade are also being looked at.

Story continues below this ad

Reports prepared by lender institutions to BPL say advances of Rs 338.66 crore to group companies started the cash trap. Moreover, Rs 342.35 crore equity investment in group companies account for over Rs 110 crore annual loss taking into account the cost of borrowing. Advances of Rs 95 crore to the Group’s finance companies add another Rs 15 crore annual debt burden on the companies finances.

According to ICICI’s estimates, the group needs to generate Rs 112 crore of profit every year to honour these investments. Since this has not happened for years, losses have mounted to Rs 287 crore.

Mehul Choksi faces setback as Belgian court finds arguments against extradition irrelevant

India2 hr ago

The Belgian government cannot extradite him without being held internationally liable; there is a violation of his right to a fair trial; and there are indications that he is subject to a political trial—these were some of the key points that Mehul Choksi, the fugitive diamond trader wanted in India for the alleged Rs 13,000 crore Punjab National Bank (PNB) loan fraud case, made before a court.

View all shorts

Live Blog

PHOTOS