Money & Banking

BoM to auction assets of Videocon Group unit Unity Appliances

PTI New Delhi | Updated on March 12, 2019

State-owned Bank of Maharashtra (BoM) has put on sale movable and immovable properties of Unity Appliances, a unit of debt-ridden Videocon Group, to recover a ₹153.77-crore loan.

The outstanding dues of Unity Appliances Ltd are more than ₹153.77 crore, plus interest, from January 5, 2018. The company, situated at SIPCOT Industrial Complex at Sivagangai in Tamil Nadu, manufactures air conditioners, and LE and LCD television sets.

Videocon Industries and its promoter Venugopal Dhoot and PN Dhoot are guarantors to Unity Appliances, as per the public notice put out by the bank. The electronic auction for land and machinery is slated for March 30, 2019, with a reserve price of ₹42.34 crore for land and ₹72.82 crore for plant and machinery.

This is the second time the bank has issued an e-auction notice to Unity Appliance Ltd. Earlier, a notice was issued under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002, in January, last year.

The Videocon Group is among the 28 large defaulters identified by the Reserve Bank of India in the second list for undertaking insolvency and bankruptcy process.

In June 2017, RBI’s internal advisory committee (IAC) identified 12 accounts, each having more than ₹5,000 crore of outstanding loans, and accounting for 25 per cent of the total NPAs of banks.

Following the RBI advisory, banks referred Bhushan Steel Ltd, Bhushan Power & Steel Ltd, Essar Steel Ltd, Jaypee Infratech Ltd, Lanco Infratech Ltd, Monnet Ispat & Energy Ltd, Jyoti Structures Ltd, Electrosteel Steels Ltd, Amtek Auto Ltd, Era Infra Engineering Ltd, Alok Industries Ltd and ABG Shipyard Ltd to NCLT.

Published on March 12, 2019

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