Move to accelerate legal action in NPA cases and save on cost
Lenders to the near-defunct Zoom Developers plan to club suits filed against the company to speed up legal action and save on costs. Over 25 lenders with loan exposure of over Rs 2,500 crore have filed separate suits in Debt Recovery Tribunals in Mumbai.
A senior public sector bank executive said it would be a time-consuming and costly exercise to pursue the matter separately when the issues and arguments were common.
Punjab National Bank is the lead banker for a lender’s consortium. Each lender will have to approach the tribunal, with request to consolidate cases filed over repayment of dues. Lenders expect to complete work (on clubbing) by the end of this financial year, he said. Entire activity is subject to verdict for the appellate body
The Central Bureau of Investigations has begun examining allegations of banking fraud in loans worth Rs 2,500 crore disbursed to Zoom Developers, a Mumbai-based project developer.
Many of Zoom’s projects, including process plants, industrial and engineering projects and energy, environment and infrastructure projects, were overseas, particularly in Europe and the United Arab Emirates. Banks had issued guarantees for Zoom which have been invoked.
A senior bank official said the group which had some projects in Europe was hit hard after global financial crisis in 2008. Its cash flows came under severe pressure as the system experienced liquidity squeeze.
It is doubtful asset (loan remaining non-performing assets for more than a year) in books of all lenders. They began to make provisions after classifying this account as non-perming assets in 2010-11.
The bank had taken insurance cover from Export Credit Guarantee Corp of India Ltd (ECGC) for Zoom exposure. Banks are also in negotiations with ECGC for their claims.
Courtesy:
Abhijit Lele | Mumbai September 17, 2012 Last Updated at 00:41 IST
http://www.business-standard.com/article/companies/banks-to-club-loan-cases-against-zoom-developers-112091700040_1.html
Lenders to the near-defunct Zoom Developers plan to club suits filed against the company to speed up legal action and save on costs. Over 25 lenders with loan exposure of over Rs 2,500 crore have filed separate suits in Debt Recovery Tribunals in Mumbai.
A senior public sector bank executive said it would be a time-consuming and costly exercise to pursue the matter separately when the issues and arguments were common.
Punjab National Bank is the lead banker for a lender’s consortium. Each lender will have to approach the tribunal, with request to consolidate cases filed over repayment of dues. Lenders expect to complete work (on clubbing) by the end of this financial year, he said. Entire activity is subject to verdict for the appellate body
The Central Bureau of Investigations has begun examining allegations of banking fraud in loans worth Rs 2,500 crore disbursed to Zoom Developers, a Mumbai-based project developer.
Many of Zoom’s projects, including process plants, industrial and engineering projects and energy, environment and infrastructure projects, were overseas, particularly in Europe and the United Arab Emirates. Banks had issued guarantees for Zoom which have been invoked.
A senior bank official said the group which had some projects in Europe was hit hard after global financial crisis in 2008. Its cash flows came under severe pressure as the system experienced liquidity squeeze.
It is doubtful asset (loan remaining non-performing assets for more than a year) in books of all lenders. They began to make provisions after classifying this account as non-perming assets in 2010-11.
The bank had taken insurance cover from Export Credit Guarantee Corp of India Ltd (ECGC) for Zoom exposure. Banks are also in negotiations with ECGC for their claims.
Courtesy:
Abhijit Lele | Mumbai September 17, 2012 Last Updated at 00:41 IST
http://www.business-standard.com/article/companies/banks-to-club-loan-cases-against-zoom-developers-112091700040_1.html
I will write a reference for this blog. thanks a lot.
ReplyDeleteHow I Got My Loan From A Genuine And Reliable Loan Company
ReplyDeleteHello Everybody,
My name is Mrs.Irene Query. I live in Philippines and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $150,000.00 to start my life all over as i am a single mother with 2 kids I met this honest and GOD fearing man loan lender that help me with a loan of$150,000.00 US. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs.Irene Query, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.