SBI to conduct e-auctions of 12 bad accounts this month to recover dues

SBI will conduct e-auctions of 12 bad accounts this month to recover dues of over Rs 506 crore under sale to asset reconstruction company (ARC) mechanism.

"In terms of the bank's policy on sale of financial assets, in line with the regulatory guidelines, we place these accounts for sale to ARCs/banks/NBFCs /FIs, on the terms and conditions indicated there against," SBI said in sale notifications.

The total outstanding against these companies is Rs 506.22 crore.

Aarya Industrial Products Pvt Ltd has dues of Rs 72.24 crore and the e-auction of the account is slated to take place on March 16.

State Bank of India said Aarya Industrial Products has filed a suit against it in January 2016 before Civil Court, Alipore, Kolkata for claiming recovery damages of Rs 226 crore.

"The sale of assets of Aarya Industrial Products Pvt Ltd will be made with the entire contingent obligation, if any, arising in future in respect of the said counterclaim," SBI said in the sale notice.

Ten accounts will go under the hammer on March 26 against their collective outstanding dues of Rs 383.23 crore.

These accounts include Heavy Metal & Tubes Ltd (Rs 116.91 crore); Shree Vaishnav Industries (Rs 58.92 crore); Sri Balmukund Polyplast (Rs 49.73 crore); Times Ferro Alloys (Rs 41.25 crore); and Bihar Raffia Industries Ltd (Rs 38.14 crore).

Others are Joharilal Agarwala Sales Pvt Ltd (Rs 24.70 crore); Megha Granules Pvt Ltd (Rs 23.21 crore); Abhinandan Interexim (Rs 14.16 crore); Timespac India (Rs 14.03 crore) and Shyam Sales (Rs 2.18 crore).

The e-auction for GOL Offshore Limited will take place on March 30 against outstanding dues of Rs 50.75 crore.

Asking the interested bidders to conduct due diligence of these assets with immediate effect, SBI said the sale is on 'as is where is basis' and the bank reserves the right not to go ahead with the proposed sale at any stage, without assigning any reason.

The decision of the bank in this regard shall be final and binding, SBI said.

Any taxes that may be arising out of the transaction will be payable by the purchaser, it added.