E-Paper
BICL revival in the doldrums
IT REMAINS unknown what went wrong with the Modified Draft Rehabilitation Scheme (MDRS)on the revival of British India Corporation, which was to be submitted to the Board of Financial and Industrial Reconstruction (BIFR).It seems to be a vital cause for a show cause notice (SCN) for winding up of the company during the recent hearing at the board.
Non-submission of MDRS prompts show-cause notice for winding up
IT REMAINS unknown what went wrong with the Modified Draft Rehabilitation Scheme (MDRS)on the revival of British India Corporation, which was to be submitted to the Board of Financial and Industrial Reconstruction (BIFR).It seems to be a vital cause for a show cause notice (SCN) for winding up of the company during the recent hearing at the board.
It is worth mentioning that in the earlier hearing held on November 28, 2005 at BIFR, which was attended by the representatives from the Ministry of Textile (MOT), BICL, Bank of India, vice president of BIC group, officers association and Gujarat Sheep and Wool Development Corporation Limited, the BIFR had issued direction to BICL that it would prepare a draft of the company’s modified/revised rehabilitation proposal considering all impacts upto March 31, 2006.
The draft was to be prepared in close co-ordination with MOT and Government of India simultaneously, considering also the means of finance for revival and the financial implication for the revision in the salaries and wages of its employees.
The same would be submitted to the operating agent Industrial Development Bank of India (IDBI). Besides, a copy would be sent to the GOI and the board within three months.
The board further stated that the IDBI would examine the company’s revised/ modified revival proposal and convene a joint meeting with all agencies concerned and if found to be feasible/ viable, would prepare a draft of the modified revival scheme and submit it to the board within the next 45 days.
Besides, it was also stated that if the IDBI failed to receive the scheme within time or did not find the revival scheme feasible it would be informed to the board and the board would issue further order.
But the comments made by board on the next hearing on April 19, 2006 concluded that the board was not in possession of MDRS at the time of hearing.
Therefore, the board, along with other observations, also commented that “ the bench also noted that the company/operating agent had not submitted any MDRS for consideration of the board in compliance with the direction issued at the last hearing, nor was there any commitment made by the company in regard to framing and submitting a viable rehabilitation scheme shortly to the board for their consideration and approval,” which led to issuing of show cause notice for winding up of the company by the board.
However, all top officials from the agencies concerned attended the board meeting, including chairman-cum-managing director (CMD) BICL VK Goel.
However, talking to Hindustan Times, Goel could not give clear details about non submission of the MDRS to the board in time. When asked about the ongoing preparations from their end to reply to the SCN of the BIFR, he said it was being considered by the MOT, but hurriedly added that preparations were on at the company’s level too.
Sources said that the non submission of MDRS with the board had been taken seriously by the leaders of BIC group Officers Association. Therefore, some representation from their end was likely to be made.
