IFCI seizes assets of Arihant Industries

In yet another move to reduce the non-performing assets (NPAs), the Industrial Finance Corporation of India (IFCI) has taken possession of the Baddi unit of Arihant Industries in Himachal Pradesh after the company failed to repay dues worth Rs 272 crore.

According to IFCI, the company has not been paying its dues to the FI since April 1997. Despite granting packages of reliefs and concessions by the institutions, the company failed to honour the institutional dues. Apart from owing IFCI Rs 272 crore as on March 31, 2003, the company also owes over Rs 40 crore to other entities like IDBI, UTI, SBI Mutual Fund, Canbank Mutual Fund and the Punjab government.

Earlier, IFCI had recalled the loans and invoked the guarantee of promoters. Subsequently, IFCI had filed recovery application before the debt recovery tribunal (DRT), Chandigarh on December 18, 2000 for the recovery of its dues. Further, taking recourse to the Securitisation Act, IFCI issued notice to the company on July 29, 2002 for clearance of dues within a specified time. Since the company had not submitted any proposal within the time frame, the assets of Baddi unit which is engaged in production of cotton and polyester viscose yarn has been take over by the FI.

Apart from Baddi unit, the company has three other units — one in Secundrabad and two in Ludhiana.