SBI to conduct e-auctions of 12 bad accounts this month

NEW DELHI: State Bank of India (SBI) will be running e-auctions of 12 faulty accounts this month to receive over 506 billion rupee fees that will be sold to the Asset Reconstruction Company (ARC) mechanism become.
“With respect to the bank’s policies on the sale of financial assets, we are making these accounts for sale to ARCs / Banks / NBFCs / FIs on the terms and conditions stated therein, in accordance with the regulatory guidelines,” SBI said in sales notices.
The total amount outstanding against these companies is Rs 506.22 crore.
Aarya Industrial Products Pvt Ltd has fees of Rs 72.24 billion and electronic auctioning of the account is scheduled for March 16.
SBI said Aarya Industrial Products filed a lawsuit against the company in the Alipore, Kolkata civil court in January 2016 for seeking damages of Rs 226.
“The sale of assets of Aarya Industrial Products Pvt Ltd is made with all of the contingent liability arising in relation to the aforementioned counterclaim in the future,” SBI said in the sales announcement.
Ten accounts will go under the hammer on March 26 for their collective outstanding fees of Rs 383.23.
These accounts include Heavy Metal & Tubes Ltd (Rs 116.91 crore); Shree Vaishnav Industries (Rs 58.92 crore); Sri Balmukund Polyplast (Rs 49.73 crore); Times Ferro Alloys (Rs 41.25 crore); and Bihar Raffia Industries Ltd (Rs 38.14 crore).
Others are Joharilal Agarwala Sales Pvt Ltd (Rs 24.70 crore); Megha Granules Pvt Ltd (Rs 23.21 crore); Abhinandan Interexim (Rs 14.16 crore); Timespac India (Rs 14.03 crore) and Shyam Sales (Rs 2.18 crore).
The e-auction for GOL Offshore Limited will take place on March 30th for outstanding fees of 50.75 rupees.
SBI urged interested bidders to due diligence on these assets with immediate effect, stating that the sale was “as is” and the bank reserves the right not to proceed with the proposed sale at any time without giving a reason.
The bank’s decision in this regard is final and binding, said SBI.
Any taxes that might result from the transaction would be payable by the buyer, he added.

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