Sbi, Icici Bank Move Tribunal Against State Dues

The State Bank of India and ICICI Bank have joined the Industrial Development Bank of India (IDBI) and IFCI in dragging the Maharashtra government to the debt recovery tribunal for recovering loans from state public enterprises. These loans were raised on the back of state government guarantees.

IDBI, IFCI and ICICI have moved the tribunal in Mumbai for the recovery of outstanding loans worth Rs 50.69 crore after the Sindkheda Co-operative Sugar Factory defaulted in payments.

The State Bank of India has moved the tribunal to recover Rs 3.89 crore owed by the Development Corporation of Konkan.

These loans are backed by state government guarantees. Once the properties of the units are attached and auctioned, the state government will have to make good the shortfall, if any, in meeting the liability.

The tribunal has so far refrained from issuing attachment orders against the state government properties. A senior official involved with the proceedings told Business Standard the financial institutions twice moved the tribunal for the attachment of the properties.

An attachment list including Mantralaya, the state government