ICICI Bank argued that the company is a case "fit and proper to be referred to Corporate Insolvency Resolution Professional"
ICICI Bank has finally dragged scam-ridden Gitanjali Gems to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC).
DNA Money had on September 11 reported that ICICI Bank was taking initial steps of sounding out prospective resolution professionals for the likely move to NCLT.
The Mumbai bench of NCLT on Wednesday heard the case filed by Gitanjali's banker, who argued that the company is a case "fit and proper to be referred to Corporate Insolvency Resolution Professional".
ICICI Bank said its share was Rs 608 crore in the Rs 5,980 crore Gitanjali Gems owes to a consortium of 33 banks, which includes Punjab National Bank, Allahabad Bank, Bank of Baroda, Central Bank of India.
Name of Vijay Garg was suggested as the resolution professional.
ICICI Bank had in September floated Expression of Interests for prospective resolution professionals experienced in handling resolution of scam-tainted companies, DNA Money had reported, which assumed significance because of the nature and scale of alleged frauds committed by the company management, which has led to involvement of Serious Fraud Investigation Office.
SFIO is expected to work in close coordination with the resolution professional following a recent landmark judgement of NCLT.
In the bankruptcy case of another disgraced company Rei Agro, the Kolkata-bench of NCLT directed the freeing of assets of the company from the Enforcement Directorate to be distributed among creditors, who collectively owns Rs 10,800 crore.
ICICI Bank was earlier depending on the Debt Recovery Tribunal or selling mortgaged assets through Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest, or Sarfaesi, Act to recover its money, and lenders had earlier ordered a forensic audit of the books of Gitanjali Gems which has now been completed.
The Union government had earlier taken Gitanjali Gems to NCLT under various sections of the Companies Act with a plea to freeze assets during inquiry and investigation into the alleged conduct of the affairs of the company in a manner which is prejudicial or oppressive to the public interest.
NOOSE TIGHTENS
- ICICI Bank argued that the company is a case "fit and proper to be referred to Corporate Insolvency Resolution Professional".
- The bank's share was Rs 608 crore in the Rs 5,980 crore Gitanjali Gems has to pay to a consortium of 33 banks
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