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Journalism of Courage
MUMBAI, SEPT 22: Even as a complete lock-out looms large over PAL-Peugeot’s operations, the directors of the company, including the Doshis of erstwhile Premier Automobiles, are facing the prospect of facing a criminal suit to be filed by Standard Chartered Bank for "misappropriation of funds."
Stanchart officials told this newspaper the company owes over Rs 40 crore to them by way of working capital loans while another Rs 1.25 crore is blocked as it had booked over 5,000 premier 118 NEs on behalf of its customers.
"We are toying with the idea to file a criminal suit against all the PAL-Peugeot directors, including the Doshis, to recover its booking amount for around 5,000 cars," officials said. "As per norms, the booking amount for the cars should have been kept in an escrow account. But as the funds have been used for other purposes, we are toying with the idea of filing a criminal complaint with the court," officials added.
The bank had booked Premier 118 NEs for Rs 25,000 each on behalf of itscustomers, but as the company failed to give deliveries and, at the same time, failed to pay back the booking amount, Stanchart now plans to take the company’s directors to court to recover its funds.
Stanchart officials say they are now pinning hopes on a meeting between the Doshis and Peugeot officials on September 28 in Paris which will essentially discuss how to pay back the debtors of the company, who are turning increasingly aggressive to get back their funds. According to a pay-back plan submitted to the Mumbai High Court, Pal-Peugeot will have to repay its dues by October 5.
Meanwhile, the bank has already taken possession of company’s all inventories and receivables at its plant located near Mumbai in Kalyan last week. Besides, the Bank has served legal notices to all the dealers of the company to take possession of their receivables on all the cars sold.
“We have visited the plant and with the help of the court appointed officials taken possession of all inventories and assets including CKDkits with the Customs,” Stanchart officials said. Societe General Bank is a co-complainant in the case against PAL-Peugeot.
But as things stand today, it would be difficult for the company to arrange funds unless Peugeot steps in by providing funds to the ailing joint venture, officials add.
On the other hand, ICICI — yet another lender of the company — has decided to move court for taking over company’s lone plant in Kalyan. The financial institution would be making the Doshis, the promoters of Premier Automobiles, as one of the respondents to the suit.
ICICI would be filing the suit — which is in final stages of completion — praying for taking over the assets of the company as it has failed to pay back on non-convertible debentures of Rs 32 crore. The company owns a car plant with a modern paint shop valued at around Rs 400 crore.
Automobile Peugeot of France, which has washed its hands off its loss-making joint venture by giving its 32 per cent stake to Premier Automobiles, will also one ofthe respondents.
Meanwhile, in the legal battle between the company and its directors, it is the fate of over 3,000 employees which is hanging in balance. All the workers are not getting their salaries in time even as the management has reduced the working days to three in a week.
