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In a post on Twitter, Somaiya, member of Parliament from Mumbai – North East, said, “Requested attention & action of RBI, Bank of Baroda, CVC & IBA towards Forensic Audit findings that Binani Cement Promoters & Affiliates have siphoned of Rs 24 billion through fraudulent financial transactions”.
Recently, Dalmia Bharat Cement, which emerged as the H1 bidder in the Binani Cement takeover under IBC proceedings, has written to the CVC alleging siphoning of funds to the tune of Rs 24 billion by the company’s promoters and asked how banks can conclude a deal with a person against whom such charges has been alleged. It has also approached the RBI, various lenders in the Committee of Creditors (CoC) and others asking for intervention.
Post the tweet, sources in Dalmia Bharat Cement claimed that company officials haven’t met Somaiya over their allegation. On the other hand, despite repeated attempts, Somaiya couldn’t be directly reached for comments.
Somaiya, who is a chartered accountant and president of Mumbai-based Investors’ Grievances Forum, has raised several issues on Augusta Westland deal, Bitcoin, black money, shell companies, Adarsh scam, 4G Tower issue and several others and has also been vocal on the Kamala Mills fire incident last year.
Requested attention & action of RBI, Bank of Baroda, CVC & IBA towards Forensic Audit findings that Binani Cement Promoters & Affiliates have siphoned of ₹2,400 crores through fraudulent financial transactions #binanicement #RBI @arunjaitley pic.twitter.com/DPcEclKPVg— Kirit Somaiya (@KiritSomaiya) April 11, 2018
Although sources suggest that the ongoing tussle over the acquisition of Binani Cement may eventually land up in discussions in the Parliament, sources close to Binani Cement suggested that it will not impact their move to ask the Supreme Court for a solution.
“The matter can come up in the Parliament but we have approached the country’s apex court and have full confidence in the judiciary”, the source close to Binani Cement said.
After Binani Industries, the holding company of Binani Cement, approached the lenders for an out-of-court settlement, on suggestions of the NCLT, Dalmia Bharat Cement has upped its opposition to such a move terming the process as a violation of the IBC process.
Last Saturday, after the lenders expressed their willingness to go ahead with an out-of-court settlement with Binani Industries if the defaulter had the approval of the Supreme Court, Binani Industries filed a special leave petition under section 62A of the IBC framework and submitted an application for an out-of-court settlement.
The Supreme Court will be hearing the submissions of Binani Cement on Friday, April 13.
Backed by UltraTech Cement, Binani Industries has offered the lenders over Rs 76 billion for the out-of-court settlement, which is Rs 1.1 billion higher than what Dalmia Bharat Cement is offering to the CoC.