SBI to begin a fire auction of NPAs of Rs 746 crore in Oct-Nov
To recoup more than Rs 746 crore, the State Bank of India (SBI) has lined up a number of non-performing assets for sale this month and the following month, including the fraud account of Sintex BAPL. SBI will offer NPAs for sale to banks, non-banking financial firms, asset reconstruction companies (ARCs), and financial institutions (FIs) in an auction scheduled for November 4 (NBFCs).Accounts of Sintex BAPL, with an outstanding of Rs 197.74 crore, Surat Hazira NH6 Tollway Pvt Ltd, of exposure of Rs 335.54 crore, and Shreebhav Polyweaves Pvt Ltd (Rs 20.20 crore) will be included in the auction of NPAs.
SBI stated that because Sintex BAPL is a fraud account, only ARCs are eligible for the e-auction in this case. Bank guarantees of Rs. 6.10 crore are included in the unpaid amount of Rs. 197.74 crore against the company. Manufacturing injection-molded plastic components for the automotive sector is the company's business.
SBI said the proposed acquisition of these assets should not be funded and backed by promoters/company/guarantors or any of their related parties.
Three accounts will be put up for e-auction on October 31: VVF India Ltd, which has a loan outstanding of Rs 154.37 crore; Ashok Magnetics Ltd (previously AML Steels), which has a loan outstanding of Rs 23.82 crore; and Agarwalas Polytrade (Rs 15.03 crore).
"SBI reserves the right not to go ahead with the proposed transaction or modify any terms and conditions at any stage, without assigning any reason," said the lender in the bid document.
Inputs from PTI
This story originally appeared on: India Times - Author:Tax Cognition
