Dabhols Indian Lenders File Suit To Protect Securities

In a dramatic development, ICICI, Industrial Development Bank of India, IFCI and State Bank of India today filed a suit in the Mumbai High Court to protect and preserve their securities in the controversial $3 billion Dabhol Power Company. The suit will come up for hearing tomorrow. Harish Salve, solicitor general of India, is representing the Indian banks and financial institutions in the case.

Confirming the development, an institutional source said the filing of the suit does not amount to an enforcement action. But they want immediate resumption of work on phase I of the 2,184-mw power project which has been mothballed. This will ensure cash flow and help promoters pay up the lenders