Rs 1,450cr outstanding to FIs and banks, yet Mardia refuses to relent

After making history as the first defaulting company whose assets were attached by ICICI after the passing of the NPA Ordinance, Mardia Chem...

After making history as the first defaulting company whose assets were attached by ICICI after the passing of the NPA Ordinance, Mardia Chemicals chairman and managing director today accused the financial institutions of victimisation and witch hunting.

Addressing a press conference here today, Rashik Mardia, chairman and managing director of Mardia Chemicals said that ‘‘now that the ordinance has become an Act we would if required submit a revised plea in the court challenging the Act.’’

Not perturbed by the recent seizure of the company’s Vatwa plant by ICICI (which according to Mardia’s valuation is around Rs 35 crore), Mardia said that the company has already filed a suit against ICICI, its CEO, MD and joint MD in the civil court of Ahmedabad for recovery of Rs 5,631.44 crore and had earlier also filed a counter decision claim on IDBI for Rs 2,000 crore.

Clarifying Mardia’s position on the recent seizures by ICICI under the NPA Act, the CMD of the company threw an open offer to the FIs and banks stating that he is ready to step down from his position and appoint a professional if the institutions are ready to revive the company.

Stating that ICICI has disbursed only Rs 56 crore to his company, for which subsequently the FI is claiming Rs 300 crore, Mardia said that he is ready to pay up provided the institutions and banks go in for restructuring the loans of the company as has been the case in some companies like Arvind Mills, Essar Group, Ispat Group, Lloyds Group, Flex Industry etc.

According to Mardia the troubles started in his company post 1995, when a couple of the his plants had shut down due to environment problems. In fact, before that the company had prepaid all the outstanding loans to FIs and banks. Only IDBI and some insurance companies did not accept the prepayment to whom the outstanding then was around Rs 35 crore.