Metal Box revival stalled

MUMBAI, Mar 5: The West Bengal Government has stalled the rehabilitaion scheme of Metal Box on the grounds that the valuation has to be modified due to the repeal of the Urban Land Ceiling and Regulation Act (ULCRA).

A Metal Box release said the company’s plans to shift its registered office to Delhi may be the reason for the Government opposing the move. The Calcutta units of the company are the only units which have not operated throughout the decade old the sickness of the company. The operations have undergone severe truncation and the company had filed for shifting the HQ from Calcutta to New Delhi. The scheme for Metal Box rehabilitation came up for approval before the Delhi High Court.The matter basically pertains to FIs, banks and the promoters for sharing the drop in the value of the Worli premises after the valuation was undertaken by the valuers appointed by the consortium of banks and financial institutions.

The revival plan was sanctioned by the BIFR and it had been in appeal with theAAIFR. The AAIFR while upholding the scheme changed certain aspects of the scheme including increase in the value of the Worli premises which aspect was not the subject matter of the apeal before the AAIFR.