Wilmar International set to take RBI to court over Shree Renuka Sugars

Fortune 500 agri major disputes central bank's decision to classify firm as NPA

Sugar, sugarcane

Singapore-based Fortune 500 agribusiness major Wilmar International is set to take the Reserve Bank of India (RBI) to court over its insistence that Shree Renuka Sugars, in which it holds a 58 per cent stake, be classified as a non-performing asset (NPA) by banks. Wilmar stands to take a big hit as its Rs 4,000-crore exposure to the company by way of equity and the loans guaranteed by Wilmar Sugar Holdings (WSH) amount to nothing. This is despite Shree Renuka Sugars’ consortium of lenders, led by IDBI Bank, having apprised the RBI that there had been a material change in the ...