BIFR directive: BICL plans receive rude shock
THE BOARD for Industrial and Financial Reconstruction (BIFR)?s recent direction ? imposing restriction to dispose of any fixed assets of the company, without prior consent of the Board ? seems to have put the British India Corporation Limited (BICL) into deep trouble.india Updated: Jun 04, 2006 10:23 IST
THE BOARD for Industrial and Financial Reconstruction (BIFR)’s recent direction — imposing restriction to dispose of any fixed assets of the company, without prior consent of the Board — seems to have put the British India Corporation Limited (BICL) into deep trouble.
The direction was conveyed to BICL through a letter dated May 23, 2006 from the monitoring section (II) of BIFR.
Sources said that this restriction is likely to cause a setback to the plans made to meet financial requirements by disposing of the extra land.
The BIFR directed “the company/existing promoters would not dispose of any of the fixed assets of the company, as per provisions under section 22 A of the Act, without obtaining prior consent of the Board.
“In case, the company/units is/are operational, the current assets could be drawn to the extent required for day-to-day operations, proper records of which would be maintained and all proceeds thereof, would be routed through company’s financing bankers only”.
Sources said that all recommendations made by the asset sale committee of the BICL are likely to be dumped in the cold storage now and the plans chalked out by company’s management about making headway in financial achievements, are likely to suffer.
Moreover, the bids invited for different lands of the company, which was advertised for sale through newspapers, are likely to be called off for uncertain time, said sources.
They further said that the new direction of BIFR is also likely to affect the transfer of property to the parties, who had bought land earlier to the said order.
Sources said that BIFR has fixed the next date of hearing for August 7, 2006, to consider the reply of SCN given with regard to company’s winding and also if any modified revival scheme submitted with BIFR before the date of next hearing.