SBI puts Simbhaoli Sugars, 14 other NPA accounts worth Rs 9.88 bn for sale

Country's largest lender SBI has put up for sale 15 NPA accounts worth over Rs 9.88 billion, including UP-based Simbhaoli Sugars which owes Rs 1.58 billion to the lender.

"SBI invites expression of interest from banks/asset reconstruction companies/NBFCs/FIs for the proposed sale of 15 non-performing assets (NPAs) with principal outstanding of Rs 9.88 billion," reads the SBI bid document published on Wednesday.

Other prominent NPA accounts that feature in the list include Aksha Gold Ornaments, KBJ Jewels Industry India and KBJ Hotel Varanasi with a combined outstanding of Rs 1.64 billion.

Shri Jalaram Rice Industries has turned into an NPA account with a principal of Rs 1.27 billion while MCL Global Steel has an outstanding loan of Rs 1 billion.

Eight companies based in Gujarat availed loans in the range of Rs 59-633 million from the bank which have now become NPA accounts, showed the bid document.

SBI has asked the bidders to an submit expression of interest by March 9, 2018 and further to complete the due diligence by March 22.

The process of e-bidding will take place on March 23.

To sell these dud assets, SBI said it will complete all the formalities in the shortest possible time once the deal is finalised.

The bid document also showed that Simbhaoli Sugars and MCL Global Steel of Madhya Pradesh put nothing as collateral to avail the loans.

Simbhaoli Sugars, which owes Rs 978 million to Oriental Bank of Commerce, turned into an NPA account in 2015. The bank also filed a case with CBI against the company in September 2015 and later amended the same in November 2017.

CBI is examining the case against Simbhaoli Sugars, its chairman Gurmit Singh Mann, deputy MD Gurpal Singh and others. Simbhaoli Sugars is one of the largest sugar mills in the country.