Owned by billionaire Ujjal Upadhyay, EMTA was unable to stage a comeback following the mammoth deallocation of over 200 coal mines in 2014
EMTA Coal, once the country's largest private sector mine operator that suffered during deallocation of coal mines in 2014, is yet to recover from the setback.
Srei Equipment, which rents out construction and mining equipment, is auctioning 15 equipment leased out to EMTA Coal to recover over Rs 50 crore towards rentals.
EMTA has defaulted making payments against mining equipment taken on lease.
"The learned counsel representing the judgment-debtor seeks adjournment in order to consider the offers received by the receiver for sale of 15 assets. The matter shall appear on 24th February 2017. In the event no better offer is available on the adjourned date, the sale shall be confirmed in favour of the highest bidders on the basis of the bids already received by the receiver," the Calcutta High Court said in a recent ruling.
The subsidiary of Srei Infrastructure Finance had earlier filed arbitration proceedings against EMTA.
Owned by billionaire Ujjal Upadhyay, EMTA was unable to stage a comeback following the mammoth deallocation of over 200 coal mines by the Supreme Court in 2014.
It was working on 14 of the 37 operational mines deallocated by Supreme Court in September 2014.
After losing the contracts, EMTA was unable to get back any of them for mines which were allocated again, and now has little business.
It even took legal recourse to protect the existing contracts but eventually lost out like in the case of state-owned power companies of Punjab, Karnataka and West Bengal after its mining contracts were cancelled.
"Our company has filed two separate arbitration proceedings against EMTA Coal, claiming our outstanding dues along with interest thereon, which aggregates to approximately Rs 26.3 crore under agreement dated October 4, 2012 and outstanding dues along with interest thereon, which aggregates to approximately Rs 25.1 crore," Srei Equipment had disclosed in its fund-raising prospectus in November.
Fitch Ratings has already withdrawn its rating for EMTA due to lack of information flow from the company after putting it under suspension in 2015. "The suspension follows the lack of clarity on EMTA's future business and financial profile," the rating agency had said then.
HURTLING DOWN THE BARREL
- Owned by billionaire Ujjal Upadhyay, EMTA was unable to stage a comeback following the mammoth deallocation of over 200 coal mines in 2014
- It was working on 14 of the 37 operational mines that were deallocated
- EMTA was unable to get back any contracts for mines which were allocated again, and now has little business
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