MMCB initiates steps to recover Rs 18.41 cr

Jairmabhai Patel, chairman, MMCB claimed it to an achievement of the bank management.

In the first case, Nitin Constructions that owes the bank Rs 11.50 crore, has agreed to pay all the dues under an arrangement sanctioned by the high court.

Patel said that under the RBI scheme, the company has paid up a sum of Rs 2.34 crore as the first installment, and has given a written undertaking that an additional sum of Rs 67 lakh will be paid in the coming days to the bank.

Nitin Construction has also handed over post-dated cheques for the remaining amount, to be payable once in three months. MMCB had given the loan to seven accounts of Nitin Constructions without any security.

Similarly Dharnendra Agro Foods that owes Rs 6.91 crore to the bank, has agreed to pay back the outstanding amount under a one time settlement scheme.

"The company has given a written assurance to the bank that it will pay back a sum of Rs 1.80 crore as the first installment, of which Rs 50 lakh has already been paid. The remaining amount will be paid in 24 installments," Patel said on Monday.

Meanwhile, the MMCB chairman has expressed disappointment at the CBI not being able to file a chargesheet against Shirish Maniar and Mukesh Babu, leading to them being released on bail.

Patel said, "The CBI expressed its inability to file a chargesheet against Shirish Maniar, who owes the bank a sum of Rs 20 crore, and Mukesh Babu, who owes a sum of Rs 220 crore," said Patel.

The revival package of MMCB has been extended by another year and the management has been directed to speed up the recovery process.

The RBI suspended MMCB from the clearing house in March 2001, after a preliminary inquiry revealed that the bank was facing a major liquidity crunch and was also involved in the pay order scam involving Ketan Parekh.

The original revival package period of the bank was scheduled to expire on August 24, 2004, but has been extended since.