IDBI’s cell to take on defaulters

IDBI has set up a 10-member cell called ‘Securitisation and Reconstruction Cell’ (S&R Cell) to formulate a strategy to go ahead wi...

IDBI has set up a 10-member cell called ‘Securitisation and Reconstruction Cell’ (S&R Cell) to formulate a strategy to go ahead with the second phase of action to the taken on the defaulting borrowers under for closurer ordinance, even as some companies have preferred to respond to its earlier notice by approaching courts.

“Though the notice period of 60 days under Securitisation and Reconstruction ordinance is over for several companies to whom IDBI has issued notices, it will take at least 10 days for us to initiate further action on defaulting companies as we have to prepare well in advance for facing whatever approach the defaulter is taking,” IDBI sources said.

Eighteen of the 46 companies or industrial groups which were issued notices under the NPA ordinance, are defaulters to IDBI also.

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“We are meticulously working out the strategy to initiate further action against the defaulters who were already issued notices. If need be, we are also keeping scope for appointing independent agencies for keeping in safe custody and operating the industrial assets to be taken possession under the ordinance,” the sources said.

“There are various approaches the defaulting companies may take including approaching the court like the Gujarat-based Mardia Chemicals group and HS Ranka promoted Mordern Group have moved the courts against the notices issued earlier. Considering all the approaches the promoters may think of we will have to be prepared for 150 to 180 activities after initiating action for initiating action for taking possession of secured assets,” the sources added.

Ultimately, the institution must be ready for initiating any kind of action and be prepared for the same. Even initiating takeover of secured assets should ideally be taking place in 60 to 70 days of issuing notices though we are allowed to take action at any time after 60 days, the sources said.

To a query on the possible consultants for oursourcing custody and security operations for plant and machinery, the sources said that there are institutions like Mitcon (Maharashtra Industrial and Technical Consultancy) and Iicot (Industrial and technical Consultancy of Tamilnadu Ltd), who are offering these services. The possible areas of outsourcing are valuation and preparation of status report on the assets taken possession.

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