Bank of Maharashtra to sell Videocon's TN unit to recover Rs 154-cr debt

Bank of Maharashtra (Mahabank) will sell the consumer electronics manufacturing plant of Videocon Industries in Tamil Nadu in an auction to recover its outstanding debt worth Rs 153.77 crore.

The bank has issued a notice to the company and the public about the immovable property, which has been mortgaged to the bank. The electronic auction is slated for March 30 with a reserve price of Rs 42.34 crore for land and Rs 72.82 crore for plant and machinery.

The sale will help the firm recover the amount due to the bank from the borrowers and guaranteers, including Unity Appliances (the factory owner), Venugopal Nandlal Dhoot, Pradip Kumar Nandlal Dhoot, and Videocon Industries. The possession of the property has been taken by the authorised officer of the bank.

The plant at the SIPCOT Industrial Estate in Manamadurai was set up by the company a few years ago and the auction is of 83.95 acres in the industrial area. The plant has been manufacturing and assembling LED, LCD televisions and air conditioners. 

The Videocon group is among 40 large defaulters identified by the Reserve Bank first for insolvency proceedings. The group's core businesses are consumer electronics and oil and gas exploration.